Question 1
The following is a list of selected events for Unger Sales and Service for 2012. Unger uses a perpetual inventory system and had a zero inventory balance prior to these transactions.

1) Purchased merchandise on account for $67,000.
2) Sold inventory costing $48,000 for $88,000 on account.
3) Paid transportation-out cost of $1,000 on goods sold.
4) Paid salary expense of $25,000.
5) A count of the inventory revealed that there was $18,500 of inventory on hand at the end of 2010.

Required:

Answer the following questions based on the above information.

a) What was Unger's net income for 2012?
b) Compute gross margin for 2012.
c) What amount of inventory will appear on the balance sheet for 2012?
d) Prepare an income statement for 2012.


Question 2

Hardt Corporation began business operations and experienced the following transactions during 2012:

1) Issued common stock for $10,000 cash.
2) Provided services to customers for $40,000 on account.
3) Incurred $18,000 of operating expenses on credit.
4) Collected $23,000 cash from customers.
5) Paid $15,000 on accounts payable.

Required:

a) Record the above transactions in a horizontal financial statements model to reflect their effect on Hardt's financial statements.

b) Prepare an income statement, balance sheet and statement of cash flows for 2012.

Jay, would you please show us your work so that we know what you are having problems figuring out?

We can give you textbook examples of how to work the problems, but you have probably already looked in the textbook and it didn't help. If you show us your attempts or explain where you are having difficulty in finding the solutions, then we can give you help in learning how to work these and similar problems.

I need help in checking my accounting home work. Is there a way I can email someone my work and let me know if I did it right? Thank you.

No. All answers are posted on the open board.

Need help to check my work accounting

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I need help in checking my accounting home work. Is there a way I can email someone my work and let me know if I did it right? Thank you.

If you have done your home work in Word or Excel 97-2003 Format you can upload it with your post. Just click on the Go Advance button at the bottom of the box where you post your answer, then go to Additional Options section and click on the Manage Attachments button, then click on the Browse button on the Upload File from your Computer section. Once you find the file you want to upload double click on your file so that the file path appears in the box under Upload File from your Computer. Once your file path appears you will click on the Upload button. If the file has uploaded it will appear above the Manage Attachments button and all that is left is for you to click on the Submit Answer button to submit your answer.