Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Abercrombie & Fitch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. The Company's

image text in transcribed
image text in transcribed
Abercrombie & Fitch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. The Company's retail activities are conducted under the Abercrombie & Fitch and "Abercrombie" trade names through retail stores and a magazine/catalogue bearing the Company name. Merchandise is targeted to appeal to customers in specialty markets who have distinctive consumer characteristics. Learning Objectives Record basic transactions, adjusting journal entries, and closing entries. Prepare a balance sheet and income statement. 4 Refer to the fiscal year 1999 financial statements of Abercrombie & Fitch Co. Note: "Fiscal year 1999 refers to the year that began on February 1, 1998 and ended on January 30, 1999, Process a. Open T-accounts for each balance sheet and income statement line item (i.c., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts, for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 1. Inventory costing S481,918 was purchased on account during the year 2. Store Supplies costing $1,000 were purchased on account during the year. 3. Sales of $815,804 were made of these, $15,804 were on account. The cost of merchandise sold was $465,000 5. The company collected cash of $13,398 from its customers for sales previbusly recorded as accounts receivable 6 Cash of $514,114 was used to pay suppliers for goods, supplies, and property and equipment previously purchased on account 7. The company collected $23,786 from the Limited in satisfaction of amounts owed by the Limited to A&F. 8. Cash of $50,000 was used to repay principal on long-term debt. 9. Property and equipment were acquired on account (accounts payable) for $39,987 10. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debit in the owners' equity section of the balance sheet. 11. The following represents a single composite journal entry for all remaining transactions during the year Record the entry in the appropriate accounts: Dr. Other Current Assets 400 General Admin, and Store Operating Expense 160,652 Dr. Provision for Income Taxes (spense) 68,040 Dr. 8,978 Dr Deferred Income Toxos Others Dr 6:31 Income Taxes Payable Other Long Term Liabilities Interest Income Accrued Expenses Common Stock Paisin Capital TOTAL Explanation to record all other activity for fiscal 1997 151,284 17,736 3.327 3,144 25.054 2200 20,120 220.70: Abercrombie & Fitch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of men's, women's and kids' casual apparel. The Company's retail activities are conducted under the Abercrombie & Fitch and "Abercrombie" trade names through retail stores and a magazine/catalogue bearing the Company name. Merchandise is targeted to appeal to customers in specialty markets who have distinctive consumer characteristics. Learning Objectives Record basic transactions, adjusting journal entries, and closing entries. Prepare a balance sheet and income statement. 4 Refer to the fiscal year 1999 financial statements of Abercrombie & Fitch Co. Note: "Fiscal year 1999 refers to the year that began on February 1, 1998 and ended on January 30, 1999, Process a. Open T-accounts for each balance sheet and income statement line item (i.c., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts, for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 1. Inventory costing S481,918 was purchased on account during the year 2. Store Supplies costing $1,000 were purchased on account during the year. 3. Sales of $815,804 were made of these, $15,804 were on account. The cost of merchandise sold was $465,000 5. The company collected cash of $13,398 from its customers for sales previbusly recorded as accounts receivable 6 Cash of $514,114 was used to pay suppliers for goods, supplies, and property and equipment previously purchased on account 7. The company collected $23,786 from the Limited in satisfaction of amounts owed by the Limited to A&F. 8. Cash of $50,000 was used to repay principal on long-term debt. 9. Property and equipment were acquired on account (accounts payable) for $39,987 10. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debit in the owners' equity section of the balance sheet. 11. The following represents a single composite journal entry for all remaining transactions during the year Record the entry in the appropriate accounts: Dr. Other Current Assets 400 General Admin, and Store Operating Expense 160,652 Dr. Provision for Income Taxes (spense) 68,040 Dr. 8,978 Dr Deferred Income Toxos Others Dr 6:31 Income Taxes Payable Other Long Term Liabilities Interest Income Accrued Expenses Common Stock Paisin Capital TOTAL Explanation to record all other activity for fiscal 1997 151,284 17,736 3.327 3,144 25.054 2200 20,120 220.70

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions