Accounting

[The following information applies to the questions displayed below.]

Husemann Co.'s assets include notes receivable from customers. During fiscal 2016, the amount of notes receivable averaged $45,700, and the interest rate of the notes averaged 8.9%.

Required:

a-1. Calculate the amount of interest income earned by Husemann Co. during fiscal 2016.

a-2. Prepare a horizontal model that accrues the interest income earned from the notes. (Use amounts with + for increases and amounts with - for decreases.)

a-3. Prepare a journal entry that accrues the interest income earned from the notes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-1. If the balance in the Interest Receivable account increased by $2,930 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year?

b-2. Prepare a horizontal model to show the collection of this amount.(Use amounts with + for increases and amounts with - for decreases.)

b-2. Prepare a horizontal model to show the collection of this amount.(Use amounts with + for increases and amounts with - for decreases.)

b-3. Prepare a journal entry to show the collection of this amount. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-3. Prepare a journal entry to show the collection of this amount. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b-3. Prepare a journal entry to show the collection of this amount. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

The following data are available for Sellco for the fiscal year ended on January 31, 2017:

Sales

750

units

Beginning inventory

250

units

@

$

3

Purchases, in chronological order

330

units

@

$

5

450

units

@

$

7

200

units

@

$

7

Required:

a. Calculate cost of goods sold and ending inventory under the cost flow assumptions, FIFO, LIFO and Weighted average (using a periodic inventory system): (Round unit cost to 2 decimal places.)

b. Assume that net income using the weighted-average cost flow assumption is $15,400. Calculate net income under FIFO and LIFO. (Round unit cost to 2 decimal places.)