Question
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
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.)
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