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AC1220 ACCOUNTING I Lab 3.1

This lab assignment helps students apply accounting principles to real-world scenarios, reinforcing key concepts in financial accounting.

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    AC1220 ACCOUNTING I Lab 3 . 1 1 AC1220 ACCOUNTING I Lab 3.1 You are tasked with preparing and analyzing the financial information of Jake's Computer Sales and Repair for the month of Ap ril 20x1. 1. Multistep Income Statement: Prepare a multistep income statement for Jake’s Computer Sales and Repair for the month ending April 30, 20x1, using the provided trial balance. Make sure to fill in the shaded cells, using the appropriate revenue and expense amounts. Provide the net income. 2. Gross Profit Percentage: Using the income statement prepared above, calculate the gross profit percentage for Jake’s Computer Sales and Repair for the month ended April 30, 20x1. Compare this percentage to the range of 0.05 to 0.09, which represents the gross profit percentage for its main competitors. Based on this, discuss Jake's profitability relative to its competitors . 3. Capital Balance: Compute the capital balance for Jake’s Computer Sales and Repair as of April 30, 20x1. You will need to use data provided in the trial balance and the information from the income statement to calculate the ending capital. Word Count Requirement: Write no more than 500 words in total for all parts of the question. Ensure that your calculations ar e clear and that your explanations are concise.

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    AC1220 ACCOUNTING I Lab 3 . 1 2 AC1220 Lab 3.1 Introduction In each of the first three months of operation, Jake’s Computer Repair Service generates a small profit. Jones decides to sell computers in additi on to providing repair services and renames the proprietorship Jake’s Computer Sale s and Repair to reflect this change. On April 1, 20x1, Jones enters into a purchase agreement with a computer equipment supplier and places an order for A - line tablet computers, a promising and a ffordable new product that the business will offer to the public. The following transactions occur during April 20x1: a. April 2, 20x1. Jake deposits an additional $35,000 into the business bank account in exchange for capital. b. April 8, 20x1. The inventory shipment arrives at Jake’s Computer Sale s and Repair, and the invoice totals $28,000. The total includes shipping costs amounting to $200. Jake pays for the shipping costs upon delivery of the inventory. Shipping terms are 2/10 net 30. c. April 15, 20x1. Inventory costing $18,000 is sold to customers for $20,700 (cash). d. April 16, 20x1. Jake’s Computer Sale s and Repair makes cash payment in full settlement of inventory purchase on April 8; see transaction b above — take credit terms into account. e. April 18, 20x1. Another shipment of inventory arrives at Jake’s Computer Sale s and Repair, accompanied by the following invoice: PC Supplier, Inc. 5555 N Drive Ganesville, ID INVOICE N O. : 109 April 18, 20x1 Ship to : Jake’s Computer Repair Service 7101 Summer Ln, Wembly, KA Terms: 2/10 net 30 Quantity Item Description Unit Price Total 150 A - line computer $205.00 $30,750 TOTAL $30,750

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