Brief Exercise 5-3Prepare the journal entries to record the

Brief Exercise 5-3Prepare the journal entries to record the followingtransactions on Kwang Company’s books using a perpetual inventory system.On March 2, Kwang Company sold $900,000 of merchandiseto Sensat Company, terms 2/10, n/30. The cost of the merchandisesold was $620,000.(Creditaccount titles are automatically indented when amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCredit(To record credit sale)(To record cost of merchandise sold)On March 6, Sensat Company returned $90,000 of themerchandise purchased on March 2. The cost of the returned merchandisewas $62,000.(Creditaccount titles are automatically indented when amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCredit(To record merchandise returned)(To record cost of merchandise returned)Brief Exercise 5-4Prepare the journal entries torecord these transactions on Sensat Company’s books under aperpetual inventory system.On March 2, Kwang Company sold $900,000 ofmerchandise to Sensat Company, terms 2/10, n/30. The costof the merchandise sold was $620,000.(Credit account titles are automatically indentedwhen amount is entered. Do not indent manually.)AccountTitles and ExplanationDebitCreditOn March 6, Sensat Company returned$90,000 of the merchandise purchased on March 2. The costof the returned merchandise was $62,000.(Credit account titles are automatically indentedwhen amount is entered. Do not indent manually.)AccountTitles and ExplanationDebitCreditOn March 12, Kwang Company received the balancedue from Sensat Company.(Credit account titles areautomatically indented when amount is entered. Do not indentmanually.)AccountTitles and ExplanationDebitCreditOn March 12, Kwang Company received the balance due fromSensat Company.(Creditaccount titles are automatically indented when amount is entered. Do notindent manually.)Account Titles and ExplanationDebitCreditBrief Exercise 5-6HudsonCompany has the following account balances: Sales Revenue $195,000, SalesDiscounts $2,000, Cost of Goods Sold $117,000, and Inventory $40,000.Prepare the entries to record the closing of these items to Income Summary.(Credit account titles are automatically indented when amount isentered. Do not indent manually.)Account Titles andExplanationDebitCredit(To close accountswith credit balances.)(To close accountswith debit balances.)Brief Exercise 5-8Statewhere each of the following items would appear on (1) a multiple-step incomestatement, and on (2) a single-step income statement: (a) gain on sale ofequipment, (b) interest expense, (c) casualty loss from vandalism, and (d) costof goods sold.Multiple-Step IncomeStatementSingle-Step IncomeStatementItemSectionSection(a)Gain on sale of equipmentCost of Goods SoldOther Expenses and LossesOperating ExpensesRevenuesExpensesGross ProfitOther Revenues and GainsOther Revenues and GainsExpensesGross ProfitOther Expenses and LossesCost of Goods SoldOperating ExpensesRevenues(b)Interest expenseRevenuesCost of Goods SoldOperating ExpensesGross ProfitOther Revenues and GainsExpensesOther Expenses and LossesExpensesRevenuesOther Expenses and LossesGross ProfitOther Revenues and GainsCost of Goods SoldOperating Expenses(c)Casualty loss from vandalismCost of Goods SoldOther Expenses and LossesGross ProfitOperating ExpensesExpensesRevenuesOther Revenues and GainsOther Revenues and GainsOperating ExpensesExpensesGross ProfitOther Expenses and LossesCost of Goods SoldRevenues(d)Cost of goods soldOther Revenues and GainsOther Expenses and LossesGross ProfitExpensesCost of Goods SoldOperating ExpensesRevenuesOperating ExpensesRevenuesCost of Goods SoldOther Expenses and LossesGross ProfitOther Revenues and GainsExpensesExercise 5-5Presentedbelow are transactions related to Bogner Company.1.On December 3, Bogner Company sold $570,000 ofmerchandise to Maris Co., terms 2/10, n/30, FOB shipping point.The cost of the merchandise sold was $350,000.2.On December 8, Maris Co. was granted an allowance of$20,000 for merchandise purchased on December 3.3.On December 13, Bogner Company received the balance duefrom Maris Co.Preparethe journal entries to record these transactions on the books of BognerCompany using a perpetual inventory system.(Credit accounttitles are automatically indented when amount is entered. Do not indentmanually.)No.DateAccount Titlesand ExplanationDebitCredit1.Dec. 3(To recordcredit sale.)(To recordcost of merchandise sold.)2.Dec. 83.Dec. 13Assumethat Bogner Company received the balance due from Maris Co. on January2 of the following year instead of December 13. Prepare the journalentry to record the receipt of payment on January 2.(Credit accounttitles are automatically indented when amount is entered. Do not indentmanually.)DateAccount Titlesand ExplanationDebitCreditJan. 2Exercise 5-7Juan Morales Company had the following account balances atyear-end: Cost of Goods Sold $60,000; Inventory $15,000; OperatingExpenses $29,000; Sales Revenue $115,000; Sales Discounts $1,200; andSales Returns and Allowances $1,700. A physical count of inventorydetermines that merchandise inventory on hand is $13,900.Preparethe adjusting entry necessary as a result of the physical count.(Credit account titlesare automatically indented when amount is entered. Do not indentmanually.)Account Titlesand ExplanationDebitCreditPrepareclosing entries.(Creditaccount titles are automatically indented when amount is entered. Do notindent manually.)Account Titlesand ExplanationDebitCredit(To closeaccounts with credit balances.) (To closeaccounts with debit balances.)(To close netincome / (loss).)Exercise 5-13Presented below is financial information for two differentcompanies.Determinethe missing amounts.MayCompanyReedCompanySales revenue$90,000$(d)Sales returns$(a)$5,000Net sales87,000102,000Cost of goods sold56,000(e)Gross profit(b)41,500Operating expenses15,000(f)Net income(c)15,000Determinethe gross profit rates.(Roundanswer to 1 decimal place, e.g. 25.2%.)MayCompanyReedCompanyThe gross profit rate % %