Which of the following is the correct order of subtotals that appear on a multi step income statement quizlet?

What is the order of the subtotals that appear on a multi-step income statements?
A. Gross Profit, Operating Income, Net Income, Total Other Income and Expenses
B. Operating Income, Gross Profit, Net Income, Total Other Income and Expenses
C. Total Other Income and Expenses, Operating Income, Gross Profit, Net Income
D. Gross Profit, Operating Income, Total Other Income and Expenses, Net Income

League Automobiles sold an automobile for $24,000 on account. The cost of the automobile was $13,440. The sale of the automobile came with one year of free oil changes valued at $360. What would be the journal entry to record the sale?
A. Accounts Receivable 24,000
Sales Revenue 24,000
Cost of Goods Sold 13,440
Merchandise Inventory 13,440
B. Accounts Receivables 24,360
Sales Revenue 24,000
Unearned Revenue 360
Cost of Goods Sold 13,440
Merchandise Inventory 13,440
C. Accounts Receivables 24,000
Sales Revenue 23,640
Service Revenue 360
Cost of Goods Sold 13,440
Merchandise Inventory 13,440
D. Accounts Receivables 24,000
Sales Revenue 23,640
Unearned Revenue 360
Cost of Goods Sold 13,440
Merchandise Inventory 13,440

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A company that uses the perpetual inventory system purchases inventory for $65,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made within 10 days?
A) a debit to Accounts payable for $65,000 and a credit to Cash for $65,000 and a debit to Merchandise Inventory for $1,300
B) a debit to Accounts payable for $65,000, a credit to Merchandise Inventory for $1,300, and a credit to Cash for $63,700
C) a debit to Merchandise Inventory for $1,300, a debit to Accounts Payable for $65,000 and a credit to Cash for $66,300
D) a debit to Accounts Payable for $63,700, a debit to Merchandise Inventory for $1,300 and a credit to Cash for$65,000

A company using the perpetual inventory system purchased inventory worth $500,000 on account with terms of credit being 3/15, n/45. Defective inventory of $50,000 was returned 2 days later and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be:
A) $500,000 debit to Accounts Payable and $500,000 credit to Cash.
B) $450,000 debit to Accounts Payable, $450,000 credit to Cash.
C) $500,000 debit to Accounts Payable ,$486,500 credit to Cash and $13,500 credit to Inventory.
D) $486,500 debit to Accounts Payable, $13,500 credit to Inventory and $450,000 credit to Cash.

A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid $100 cash for freight in. The entry to record payment of invoice within 10 days by the purchaser would include: (Assume a perpetual inventory system)
A) a debit to Accounts Payable for $1,960 and a credit to Cash for $1,960.
B) a debit to Accounts Payable for $2,000, a debit to Merchandise Inventory for $100 and a credit to Cash for $1,960.
C) a debit to Accounts Payable for $2,000, a credit to Merchandise Inventory for $40 and a credit to Cash for $1,960.
D) a debit to Accounts Payable, for$1,960 a debit to Merchandise Inventory for $40 and a credit to Cash for $2,000.

A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000. The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include:
A) a debit to Cash for $17,460, a credit to Merchandise Inventory for $540, and a credit to Sales Revenue for $18,000.
B) a debit to Cash for $17,460, a debit to Sales Discount for $540, and a credit to Accounts Receivable for $18,000.
C) a debit to Cash for $18,000, a debit to Merchandise Inventory for $2,000 and a credit to Accounts Receivable.
D) a debit to Sales for $20,000, a credit to Accounts Receivable for $20,000, and a credit to Sales Discount for $2,000.

The normal balances of Sales, Sales Discounts, and Sales Returns and Allowances are:
A) debit, credit, and credit, respectively.
B) debit, debit, and credit, respectively.
C) credit, debit, and debit, respectively.
D) credit, credit, and debit, respectively.

A merchandiser uses a perpetual inventory system. The beginning Capital balance of a merchandiser was $100,000. During the year, sales revenue amounted to $75,000, sales returns and allowances were $1,000, sales discounts were $3,000, cost of goods sold was $40,000, and all other expenses totaled $10,000. The total withdrawals amounted to $25,000.The last step in the closing process would include:
A) a debit to Income Summary for $54,000.
B) a credit to Income Summary for $75,000.
C) a debit to Owner's Name, Capital for $21,000.
D) a debit to Owner's Name, Capital for $25,000.

A merchandiser purchased inventory on account for $10,000. Under the periodic inventory system, the journal entry to record purchases would include:
A) a debit to Purchases for $10,000 and a credit to Accounts Payable for $10,000.
B) a debit to Accounts Payable for $10,000 and a credit to Purchases for $10,000.
C) a debit to Merchandise Inventory for $10,000 and a credit to Accounts Payable for $10,000.
D) a debit to Accounts Payable for $10,000 and a credit to Merchandise Inventory for $10,000.

A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include:
A) a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000.
B) a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances.
C) a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000.
D) a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000.

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