Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase Units Acquired at Cost 200 units @ $90 per unit 500 units @ $95 per unit Units Sold at Retail March 9 Sales 520 units @ $125 per unit March 18 Purchase March 25 Purchase March 29 Sales Totals 320 units @ $100 per unit 400 units @ $102 per unit 1,420 units 360 units @ $135 per unit 880 units For specific identification, units sold include 70 units from beginning inventory, 450 units from the March 5 purchase, 140 units from the March 18 purchase, and 220 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 480,000 Credit sales $ 1,200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 648,000 debit $ 6,500 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity Required 1 Required 2A On what date does this note mature? On what date does this note mature? Required 2B General Journal < Required 1 Required 2A > Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Required 2B Required 1 Required 2A Interest at General Maturity Journal Prepare the entry to record issuance of the note. View transaction list Journal entry worksheet < 1 Record the issuance of the note. Note: Enter debits before credits. > Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase Units Acquired at Cost 200 units @ $90 per unit 500 units @ $95 per unit Units Sold at Retail March 9 Sales 520 units @ $125 per unit March 18 Purchase March 25 Purchase March 29 Sales Totals 320 units @ $100 per unit 400 units @ $102 per unit 1,420 units 360 units @ $135 per unit 880 units For specific identification, units sold include 70 units from beginning inventory, 450 units from the March 5 purchase, 140 units from the March 18 purchase, and 220 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 480,000 Credit sales $ 1,200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 648,000 debit $ 6,500 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity Required 1 Required 2A On what date does this note mature? On what date does this note mature? Required 2B General Journal < Required 1 Required 2A > Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Required 2B Required 1 Required 2A Interest at General Maturity Journal Prepare the entry to record issuance of the note. View transaction list Journal entry worksheet < 1 Record the issuance of the note. Note: Enter debits before credits. >
Expert Answer:
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these finance questions
-
For years Samsung has had a proper market equilibrium with its smartphone's prices. However, the introduction of the Samsung Galaxy S10 plus allowed Samsung to produce a more expensive version of...
-
Chauhan Corporation has a debt - equity ratio of . 8 0 . The company is considering a new plant that will cost $ 1 0 3 million to build. When the company issues new equity, it incurs a flotation cost...
-
Find the absolute maximum and minimum of the function f(x, y) = r* + y* subject to the constraint a + y* = 4096. As usual, ignore unneeded answer blanks, and list points in lexicographic order....
-
Solve the given equation over the real numbers by completing the square. If there are more than one solution, separate them by a comma. If there is no real solution, enter DNE (short for does not...
-
Prove Corollary 5.9.2. In Corollary 5.9.2. Suppose that the random vector X = (X1, . . . , Xk) has the multinomial distribution with parameters n and p = (p1, . . . , pk) with k > 2. Let < k, and...
-
Describe the six types of synovial joints, and name an example of each type.
-
The Luxon Company produces industrial and residential lighting fixtures at its manufacturing facility in Calgary. Shipment of company products to an eastern warehouse is presently handled by common...
-
Its Just Lunch is a nationwide service company that arranges lunch dates for clients. Its Just Lunch collects cash up front for a package of dates. Suppose your group is opening an Its Just Lunch...
-
Graph the function below by selecting the correct reflection, then move the vertical asymptote and the key point. Provide your answer below: Reflection 2 f(x) = log2(-x)-2
-
In the four-bar mechanism shown in Fig.3.8, the lengths of the various links are: \(A B=190 \mathrm{~mm}\), \(B C=C D=280 \mathrm{~mm}, A D=500 \mathrm{~mm}, \angle B A D=55^{\circ}\). The crank \(A...
-
Describa al menos cinco consideraciones principales de la funcion de tiempo y cualquier otro parametro relevante en el diseno de la red de distribucion.
-
ok The following is information for Dundee Realty: a. Balance per the bank statement dated October 31, 2023, is $27,938. b. Balance of the Cash account on the company books as of October 31, 2023, is...
-
After successfully viewing and opining on this video, the student will be able to: 1) Identify how the Internet is interconnected throughout the world ( End of Course Outcome 1 ) Throughout the...
-
MAMB Ltd. just issued a 9.50% coupon bond on the primary market that has a maturity of 8 years. The bond will make annual coupon payments. If the YTM on these bonds is 10.75%, what is the current...
-
1. Investing and Liquidity. How is investing related to liquidity? Give some examples of liquid investments. 2. Growth Stocks and Income Stocks. What is a growth stock? What is an income stock? Why...
-
Project K requires an initial outlay at t=0 of S85,000. its expected cash inflows are $42,000 for three years, and its WACC is 896. What is the MIRR (modified internal rate of return) for this...
-
Starting from rest, a acceleration of a = particle moving in a straight line has an (2t - 6) m/s, where t is in seconds. Part A What is the particle's velocity when t = 8 s? Express your answer to...
-
Write the general quadratic equation y2 - 8y - 4x + 28 = 0 in standard form. Determine the vertex, focus, and directrix of the parabola defined by this equation. Sketch a graph.
-
On April 1, a U.S. manufacturer sells equipment to a British importer. The sale is denominated in pounds sterling 250,000. a. Assuming that no forward contract is entered into, what would be the...
-
If the sale were denominated in U.S. dollars at the April 1 exchange rate, what would be the journal entries for parts (a) and (b) of Exercise 3 in pounds sterling for the British importer?
-
What is the purpose of the Eighth Directive of the European Union? What do you think some of these challenges hindering its total implementation might be?
Study smarter with the SolutionInn App