Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

600 110 300 0 College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted

image text in transcribed
image text in transcribed
image text in transcribed
600 110 300 0 College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 8,300 Accounts Receivable 1,960 Inventory 400 Prepaid Rent Equipment 730 Accumulated Depreciation Accounts Payable 1,380 Salaries and Wages Payable Income Taxes Payable Common Stock 5,600 Retained Earnings 3,000 Sales Revenue 13, 110 Cost of Goods Sold 7.300 Rent Expense 1.100 Salaries and Wages Expense 1,800 Depreciation Expense 110 Income Tax Expense @ Office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40, College Coasters records its inventory using perpetual Inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below a Purchased 400 coosters on account from the regular supplier on 12/1 ot a unit cost of $0.42, with terms of n/60 During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. a. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.42, with terms of n/60 b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c Sold 1,800 coasters on account on 12/3 at a unit price of $1.00 d. Collected $800 from customers on account on 12/4 e Paid the supplier $1,500 cash on account on 12/18 Pald employees $480 on 12/23, of which $290 related to work done in November and $190 was for wages up to December 22. 9. Loaded 100 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawall. The sale was made FOB destination with terms of n/60. ces Other relevant information includes the following at 12/31 h College Coasters has not yet recorded $190 of office expenses incurred in December on account The company estimates that the equipment depreciates at a rate of $9 per month. One month of depreciation needs to be recorded Wages for the perlod from December 23-31 are $100 and will be paid on January 15, K. The $600 of Prepaid Rent relates to a six-month period ending on May 31 of next year. The company incurred $700 of income tax but has made no tax payments this year. m. No shrinkage or damage was discovered when the inventory was counted on December 31. The company did not declare dividends and there were no transactions involving common stock General Journal Requirement General Ledger Trial Balance Income Statement Balance Sheet Analysis Calculate the inventory turnover ratio and days to sell, assuming that inventory was $400 on January 1 of this year. (Use 365 days a year, Round your intermediate calculations and final answers to 1 decimal place.) Inventory Tumover Ratio Days to Sell times per your days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: John Burns, Martin Quinn, Liz Warren, João Oliveira

1st Edition

0077121619, 978-0077121617

More Books

Students also viewed these Accounting questions

Question

Explain how to dispute irrational beliefs. Critical T hinking

Answered: 1 week ago

Question

Identify the major phases of the training and HRD process

Answered: 1 week ago