Journal Entries & Income Statement Analysis | Microeconomics | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

E5.2
(a) Payment on April 15 (within discount period) Date Account Titles
Debit ($) Credit ($) Apr 5 Inventory 28,000 Accounts Payable – Jax Co. 28,000 Apr 6 Inventory 700 Cash 700 Apr 7 Equipment 30,000 Accounts Payable 30,000
Apr 8 Accounts Payable – Jax Co. 3,000 Inventory 3,000
Apr 15 Accounts Payable – Jax Co. 25,000 Cash 24,500 Inventory 500
(b) Payment on May 4 (after discount period) Date Account Titles
Debit ($) Credit ($) Apr 5 Inventory 28,000 Accounts Payable – Jax Co. 28,000 Apr 6 Inventory 700 Cash 700 Apr 7 Equipment 30,000 Accounts Payable 30,000
Apr 8 Accounts Payable – Jax Co. 3,000 Inventory 3,000
May 4 Accounts Payable – Jax Co. 25,000 Cash 25,000
E5.6 (LO2,3) – Journal Entries
Date Account Titles and Explanation Debit ($) Credit ($) Sept. 1 Inventory 5,650 Accounts Payable 5,650 Sept. 3 Accounts Payable 600 Inventory 600 Sept. 12 Accounts Payable 5,050 Cash 5,050
E5.9 (LO 4, 6), AP Orlando Corporation Income Statement
For the Year Ended December 31, 2027 $ Revenues: Sales revenue 2,589,500 Rent revenue 24,000 Interest revenue 30,000 Total revenues 2,643,500
Cost of goods sold (1,172,000) Gross profit 1,471,500 Operating expenses: Advertising expense 55,000 Depreciation expense 125,000 Freight-out 25,000 Insurance expense 23,000 Salaries and wages expense 705,000 $ Prepaid expenses 31,000
Total operating expenses 964,000
Income from operations 507,500
Other revenues and gains: —
Other expenses and losses: Interest expense (62,000)
Income before income tax 445,500
Income tax expense — Net income 445,500
E5.10 (LO 4, 6) Lieu Co. Income Statement
For the Month Ended January 31, 2025 $ Sales revenue 370,000
Less: Sales returns and allowances (20,000) Less: Sales discounts (8,000) Net sales 342,000
Cost of goods sold (212,040) Gross profit 129,960 Operating expenses: Salaries and wages expense 60,000 Rent expense 32,000 $ Insurance expense 12,000 Freight-out 7,000
Total operating expenses 111,000
Income from operations 18,960
Income tax expense (5,280) Net income 13,680
Other comprehensive income (net of tax) 2,000 Comprehensive income 15,680 b. Ratios Formula Result Profit margin Net income ÷ Net sales 13,680 ÷ 342,000 = 4.0%
Gross profit rate Gross profit ÷ Net sales 129,960 ÷ 342,000 = 38.0% P5-2 Date
Account Titles and Explanation
Debit ($) Credit ($) June 1 Inventory 1,040
Accounts Payable—Catlin Publishers 1,040
June 3 Accounts Receivable—Garfunkel Bookstore 1,200 Date
Account Titles and Explanation
Debit ($) Credit ($) Sales Revenue 1,200 Cost of Goods Sold 720 Inventory 720
June 6 Accounts Payable—Catlin Publishers 40 Inventory 40
June 9 Accounts Payable—Catlin Publishers 1,000 Inventory (discount) 20 Cash 980 June 15 Cash 1,176 Sales Discounts 24
Accounts Receivable—Garfunkel Bookstore 1,200
June 17 Accounts Receivable—Bell Tower 1,200 Sales Revenue 1,200 Cost of Goods Sold 730 Inventory 730 June 20 Inventory 720
Accounts Payable—Priceless Book Publishers 720 June 24 Cash 1,200
Accounts Receivable—Bell Tower 1,200
June 26 Accounts Payable—Priceless Book Publishers 720 Inventory (discount) 7 Cash 713
June 28 Accounts Receivable—General Bookstore 1,300 Sales Revenue 1,300 Cost of Goods Sold 780 Inventory 780 Date
Account Titles and Explanation
Debit ($) Credit ($)
June 30 Sales Returns and Allowances 130
Accounts Receivable—General Bookstore 130 Inventory 80 Cost of Goods Sold 80