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York Company Limited began selling thermometers and oximeters during the pandemic. They completed the following merchandising transactions in the month of Oct 2020 using a perpetual inventory system. Oct 1 2 9 10 12 15 17 19 24 27 30Required:JournalizePurchased 90 items at the cost of $80 each on account, terms 2/10, n/30Sold 55 merchandise for $140 each on account, terms 1/10, n/30. The cost of the merchandise sold was $4,400.Received payment in full, less discounts, from customers billed on Oct 2.Paid suppliers in full, less discount, for purchases on Oct 1.Purchased merchandise for cash $2,400.Received refund for poor quality merchandise from supplier on cash purchase $480.Purchased merchandise on account for $1,700, FOB shipping point, terms 2/10, n/30.Paid freight of $180 for Oct 17 purchase.Sold merchandise for cash $5,600. The merchandise sold had a cost of $3,200Paid in full for merchandise purchased on Oct 17, less discount.Made refunds to cash customers for defective merchandise $700. The returned merchandise cost $400.the transactions (omit explanations).
The following trial balance and the other information relates to Happy Fashion Center at the end of the companys fiscal year.Happy Fashion Center TRIAL BALANCE December 31, 2018CashAccounts ReceivableInventoryAccounts PayableSuppliesEquipmentAccumulated Depreciation Equipment Notes PayableUnearned Rent RevenueCapitalRetained EarningsRent RevenueSales RevenueSales Returns and AllowancesCost of Goods SoldRent ExpenseSalaries and Wages ExpenseDebit$45,250 33,700 45,0005,500 133,00046,700 495,400 24,000 140,000 968,550Credit$48,50024,000 51,000 5,000 90,000 8,000 1,550 740,500968,550 Adjustments:1. Supplies on hand totaled $1,500.2. Equipment is being depreciated at 10% per year.3. Interest of $11,000 is accrued on notes payable at December 31.4. Accrued Salaries Payable $4,000.5. Rent related to unearned rent revenue of $3,550 was earned.Required:a) Prepare the adjusting entries as of December 31, 2018. (Omit explanations)b) Prepare an adjusted trial balancec) Prepare the Income Statement for December 31, 2018(5 marks) (10 marks) (10 marks)
Wilma's Winery uses the indirect method to determine net cash provided by operating activities. During 2017, Wilma experienced adecrease in Accounts Receivable of $8,000, an increase in Accounts Payable of $1,000, and an increase in Inventory of $4,000. Whatshould be reported as the net cash provided by operating activities if net income was reported at $23,000?O $34,000O $26,000O $28,000O $20,000