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Using the Following Data Taken from Payton Inc

question 35

Essay

Using the following data taken from Payton Inc. which uses a periodic inventory system, prepare the cost of merchandise sold section of the income statement for the year ended May 31.​  Merchandise inventory, June 1 $393,250 Merchandise inventory, May 31380,100 Purchases 1,579,600 Purchases returns and allowances 81,200 Purchases discounts 16,500 Sales 2,060,000 Freight in 59,250\begin{array} { | l | r | } \hline \text { Merchandise inventory, June 1 } & \$ 393,250 \\\hline \text { Merchandise inventory, May } 31 & 380,100 \\\hline \text { Purchases } & 1,579,600 \\\hline \text { Purchases returns and allowances } & 81,200 \\\hline \text { Purchases discounts } & 16,500 \\\hline \text { Sales } & 2,060,000 \\\hline \text { Freight in } & 59,250 \\\hline\end{array}


Definitions:

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' ownership.

Shareholders' Equity

The amount that would be returned to shareholders if all the company's assets were liquidated and all its debts repaid.

Identifiable Net Assets

The assets of a company that can be clearly identified and quantified on the balance sheet, excluding goodwill.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

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