Answer Happy

Accumulated depreciation: Buildings. Sales.. Accounts payable.. Sales returns.. Advertising expense.. Buildings.. Cash... Inventory.... Purchase discounts.. Purchase returns.. Transportation In..... Josh Anderson, (Proprietor). Sales discounts.. Depreciation expense. Office supplies... Purchase allowances.. Accounts receivable.. Sales allowances. Purchases.... Property tax expense Store supplies expense... Wages expense... The Icecream Shop Adjusted Trial Balance December 31, 2018 40,000 415,000 59,437 2,000 9,186 100,000 8,960 32,604 3,286 9,00 3,560 32,800 CR 7,000 10,000 1,799 4,000 25,600 6,000 276,000 14,625 3,814 62,375 REQUIRED (NOTE THAT ALL ACCOUNTS HAVE THEIR NORMAL DEBIT OR CREDIT BALANCES): a. The inventory on hand at December 31, 2018 was $25,878. Use this information to prepare ONLY the part of a classified, multiple-step income statement under the PERIODIC SYSTEM that shows the SALES, COST OF GOODS SOLD, and GROSS PROFIT SECTIONS (12 marks). b. Calculate the gross margin (or gross profit) percentage (2 marks).
c. Prepare the first two closing entries for the year ended December 31, 2018 with a periodic system (1) to close temporary accounts with credit balances and set up ending inventory (5 marks) (ii) to close temporary accounts with debit balances and remove beginning inventory (5 marks). d) What is the net income for the year? (2 marks) e) Over the previous 3 years, purchase discounts have averaged 1.99% of purchases available for the discount. How does the purchase discount % for 2018 compare to prior results? You must show your work to receive any marks (2 marks).