2 Accounting Problems

Question 1

Refer to Chap 8 Q1.png

Sheffield Corporation's retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was finished, the controller gathered all the count books and information from the clerical staff, completed the ending inventory calculations, and prepared the following partial income statement for the general manager for Monday morning: Sales $ 2,755,000 Beginning inventory 649.000 Purchases 1,540,000 Total goods available for sale 2.189,000 Less ending inventory 649.000 Cost of goods sold 1,540,000 Gross profit $ 1,215,000 The general manager called the controller into her office after quickly reviewing the preliminary statements. "You've made an error in the inventory." she stated. "My pricing all year has been carefully controlled to provide a gross profit of 36%%, and I know the sales are correct." (a) How much should the ending inventory have been? Expected ending inventoryJournalize the September transactions, assuming that Marigold Led. uses a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (To record purchase on account) (To record purchase return) (To record sales on account) (To record cost of goods sold)Journalize the September transactions, assuming that Marigold Led. uses = periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record purchase on account) (To record purchase return) (To record sales on account) e Textbook and Media List of Accounts Assume that Marigold Led. uses = periodic system and prepares financial statements at the end of each month. An inventory count determines that there are 100 units of inventory remaining at September 30. Prepare the adjusting entry that is needed at September 30 to report cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Sep 30