The Following Is a List of Selected Events for Outdoor

question 134

Essay

The following is a list of selected events for Outdoor World for 2016.Outdoor World uses a perpetual inventory system and had a zero inventory balance prior to these transactions.
1)Purchased merchandise on account for $170,000.
2)Sold inventory costing $124,000 for $208,000 on account.
3)Paid transportation-out cost of $7,000 on goods sold.
4)Paid operating expense of $55,200.
5)Sold land for $45,400 that had cost $50,000.
6)A count of the inventory revealed that there was $45,800 of inventory on hand at the end of 2016.
Required: Answer the following questions based on the above information.
a)What was Outdoor World's net income for 2016?
b)Compute gross margin and the gross margin percent for 2016.
c)What amount of inventory will appear on the balance sheet for December 31,2016?
d)Based on the above information,prepare a multistep income statement for 2016.

Understand the purpose and process of recording adjusting entries in the accounting cycle.

Identify and prepare journal entries for various types of adjusting entries including prepayments, accruals, and depreciation.

Analyze the impact of omitted adjusting entries on financial statements.

Prepare adjusted trial balances and understand their role in the preparation of financial statements.

---

Definitions:

Gender Role Orientation

The societal norms and expectations that dictate appropriate behavior and attitudes for individuals according to their gender.

Pay Equality

The principle of ensuring that all individuals are paid equally for the same work without discrimination based on gender, race, or other irrelevant factors.

Status Symbols

Items or actions that serve to signify a person's social position, wealth, or prestige.

Management By Objectives

A management strategy model designed to enhance an organization's performance by establishing clear goals mutually agreed upon by both the management and the employees.