ACCT$122-$ Introductory Financial Accounting I Assignment #$3$

Chapter $5$ Name:

$29$ marks Student Number:

$1.$ The following reflects the sales and cost of goods sold of Humbolt Hardware Company for the years $2023$ and $2024$:

$2023$ Net sales $=$ $$393,150,$ Cost of Goods Sold $=$ $$252,1652024$ Net sales $=$ $$474,830,$ Cost of Goods Sold $=$ $$305,831$

a$)$ Calculate the gross profit from sales for each year. $(2$ marks$)$

b$)$ Calculate the gross profit ratio for each year $-$ show your calculations! $(2$ marks$)$

c$)$ In which year was the gross profit ratio worse for Humbolt Hardware Company? $(1$ mark$)$

$2.$ You are hired to advise the owner of Yorkton Supply Company on how to properly record sales taxes for the sale and purchase of merchandise inventory. Assuming that the Saskatchewan sales tax rate is $6\%$ and that federal GST rate $=5\%,$ record the following transactions: $(4$ marks$)$

Jun $13-$ sold merchandise on account for $$4,941$ to customer Agnes Corp, with a cost of

$$2,795$

Jun $26-$ purchased merchandise on account for $$14,273$ from supplier Venture Corp

$3.$ Caronport Carpentry Shop buys and sells merchandise for resale. The following are various transactions that happened during the month of September $2024.$ Provide all necessary journal entries to record the transactions, rounding all early$-$payment discount amounts to the nearest dollar. Show your calculations. $(13$ Marks$)$

Sep

$2$

Caronport Carpentry Shop purchased $$2,494$ in merchandise from supplier WVS Enterprises. Terms $2/10,$ n$/30.$

Sep

$12$

The company paid the amount owing on their account with WVS Enterprises.

Sep

$13$

On the September $2$ purchase, the company returned $$349$ of defective merchandise.

Sep

$18$

Sold $$5,483$ in goods to customer $1533333$ Saskatchewan Ltd$.$ on account, terms $4/10$ n$/30.$ The merchandise had a cost of $$3,399.$

Sep

$281533333$ Saskatchewan Ltd returned $$1,316$ of merchandise sold to them on Sep $18$ for a full credit on account. The merchandise is resellable, and had a cost of $$816.$

Sep

$28$

Caronport Carpentry Shop received full payment for the September $18$ order sold to $1533333$ Saskatchewan Ltd$.$

$4.$ With their year$-$end of May $31,2024,$ fast approaching, Weyburn General Store wants to examine their financial performance. From the trial balance information below, prepare a classified multistep income statement $($the company uses a perpetual inventory system$).(7$ marks$)$

Accounts Payable

$ Debit Credit

$-$ $ $3,000$

Accounts Receivable $ $-$ $ $-$

Accumulated Depreciation, Building$-$Office $ $-$ $ $21,500$

Accumulated Depreciation, Equipment$-$Store $ $-$ $ $12,000$

Advertising Expense $ $18,500$ $ $-$

Building $-$ Office $ $179,500$ $ $-$

Cash $ $9,600$ $ $-$

Cost of Goods Sold $ $1,435,900$ $ $-$

Depreciation Expense, Building$-$Office $ $7,200$ $ $-$

Depreciation Expense, Equipment$-$Store $ $3,600$ $ $-$

Equipment $-$ Store $ $71,800$ $ $-$

Ethel Hardachre, Capital $ $-$ $ $246,600$

Ethel Hardachre, Withdrawals $ $110,100$ $ $-$

Insurance$-$Office Expense $ $4,300$ $ $-$

Interest Expense $ $10,200$ $ $-$

Interest Receivable $ $-$ $ $-$

Interest Revenue $ $-$ $ $29,900$

Merchandise inventory $ $179,500$ $ $-$

Notes Receivable $ $6,000$ $ $-$

Prepaid Insurance $ $1,700$ $ $-$

Prepaid Rent $ $8,600$ $ $-$

Rent revenue $ $-$ $ $17,900$

Rent$-$Store Expense $ $52,700$ $ $-$

Sales $ $-$ $ $2,345,300$

Sales Discounts $ $1,400$ $ $-$

Sales Returns & Allowances $ $8,400$ $ $-$

Supplies$-$store Expense $ $6,000$ $ $-$

Unearned Revenue $ $-$ $ $7,500$

Utilities$-$Office Expense $ $13,400$ $ $-$

Wages Payable $ $-$ $ $-$

Wages$-$Marketing Expense $ $119,700$ $ $-$

Wages$-$Office Expense $ $189,100$ $ $-$

Wages$-$Store Expense $ $246,500$ $ $-$

$ $2,683,700$ $ $2,683,700$

End of Assignment