uop acc 290 new,uop acc 290 new,uop acc 290 new complete course,uop a UOP ACC 290 Week 3 Problem 5-5A (Simon Company) NE | Page 2

22,000
872,000
Cost of goods sold
555,000
Gross profit
317,000
Operating expenses
Selling expenses
109,000
Administrative expenses
103,000
212,000
Net earnings
$105,000
As an experienced, knowledgeable accountant, you review the
statement and determine the following facts:
1. Net sales consist of: sales $911,000, less freight-out on
merchandise sold $33,000, an d sales returns and allowances
$28,000.
2. Other revenues consist of sales discounts $18,000 and rent
revenue $4,000.
3. Selling expenses consist of salespersons’ salaries $80,000,
depreciation on equipment $10,000, advertising $13,000, and
sales commissions $6,000. The commissions represent
commissions paid. At December 21, $3,000 of commissions
have been earned by salespersons but have not been paid. All
compensation should be recorded as Salaries and Wages
Expense.
4. Administrative expenses consist of office salaries $17,000,
dividends $18,000, utilities $12,000, interest expense $2,000,
and rent expense $24,000, which includes prepayments