1. Salley's Apparel shop generated the following sales during the year:
i. Sold 600 shirts @ $25 per shirt
ii. Sold 630 dresses @ 85 per dress
iii. Sold 120 pairs of shoes @ $22 per pair
On January 1, 2010, total merchandise on hand was $42,000. During the year, Salley made the following purchases:
iv. March 21,2010 $15,000.00
v. May 31, 2010 $26,528.00
vi. November 12, 2010 $10,000.00
When a total count was taken on December 31, 2010, it was determined that $20,000 of merchandise was still on hand. What was Salley's gross profit/loss as of December 31, 2010?
2. Using the information above and the account information below, prepare the asset section of the Balance Sheet for Salley's Apparel Shop. Assume the following account balances as of December 31, 2010:
|
Accounts Payable
|
$15,000.00
|
|
Unearned Revenue
|
$5,896.00
|
|
Cash
|
$95,000.00
|
|
Supplies
|
$1,540.00
|
|
Merchandise Inventory
|
$xxx
|
|
Prepaid Insurance
|
$5,000.00
|
|
Wages Expense
|
$3,000.00
|
|
Building
|
$45,000.00
|