Patty's Pet Shop had the following transactions for 2013, the first year of operations:
1) Borrowed $50,000 from the bank.
2) Purchased merchandise on account, $44,000, terms 1/10, n/30.
3) Sold merchandise on account for $51,000. The inventory sold had a cost of $28,000.
4) Paid for the merchandise purchased within the discount period.
5) Collected $41,500 on the merchandise sold on account.
6) Paid operating expense of $17,000.
7) Recognized accrued interest expense of $2,000.
Required:
a) What are total assets at the end of 2013?
b) What is the balance of the cash account at the end of 2013?
c) What is gross margin for 2013?
d) What is operating income for 2013?
e) What is net income for 2013?
f) What are total liabilities at the end of 2013?
g) What is total equity at the end of 2013?
h) What is total retained earnings at the end of 2013?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q39: Discuss the major differences between a perpetual
Q109: Indicate whether each of the following statements
Q118: Indicate whether each of the following statements
Q138: Indicate whether each of the following statements
Q140: Why are cash discounts given, and who
Q141: Adirondack Outdoor Supply, which uses the perpetual
Q143: The 2013 income statements for the Alpha
Q144: The following events pertain to Happy Acres
Q145: The following is a list of selected
Q147: At the beginning of the year, Manhattan
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents