The following information is given for Tripp Company, which uses the indirect method.
Increase in accounts receivable $2,000
Payment of dividends$2,000
Proceeds from sale of equipment $6,000
Increase in accounts payable $4,000
Decrease in inventory $3,000
From the information provided, answer the following questions:
Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth).
Year 2Year 1
Net Credit Sales $25,000$30,000
Cost of Goods Sold 16,00018,000
Accounts Receivable 3,0002,000
Current Liabilities 6,0005,000
Compute the following:
Prepare an income statement showing departmental contribution margin based on the following:
Dept. X Dept. YRent Expense
Space (square feet)17,50035,000
Cost of Goods Sold18,00016,000
Rent Expense (allocated based on square feet) 2,700
From the following transactions, prepare the appropriate general journal entries for the month of April.