ANSWER ALL QUESTIONS E5-4 On June 10, Diaz Company purchased $8,000 of merchandise from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. On June 19, Diaz pays Taylor Company in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Diaz Company. (b) Prepare separate entries for each transaction for Taylor Company. The merchandise purchased by Diaz on June 10 had cost Taylor $4,800. 15-3 Ited to Kerber Co, is presented b 1. On April 5, punched merchandise from Wilker Company for $21.000 236 30. FORhipping p 2. On April 6 paid fight costs of 5000 on merchandise puced from Wilk 1. On April 7, pund equipment on account w $25.000 4. On April and damaged and to Wikes Compare and was grea $3,000 cod for returned merchandise 5. On April 15, paid the amount due to Wilkes Company in full Instructions (a) Prepare the journal entries to record these tractions on the books of Co under a perpetual i th) Asome that Kerber Co. paid the balance de to Wilkes Compty Mayo April 15. Prepare the journal entry to roond this paint ES-10 In its income statement for the year ended December 31, 2017, Ahad Company reported the following condensed data Operating expenses Interest revenue $ 28,000 Cost of goods sold Interest expense $725,000 1,289,000 70,000 Loss on disposal of plant assets 17.000 Net sales 2,200,000 Instructions (a) Prepare a multiple-step income statement. (b) Prepare a single-step income statement. *ES-19 Below is a series of cost of goods sold sections for companies B.F.L. and R. Purchases 11 (a) 1,000 41,500 41,090 2.240 6210 110 (c) Purchase returns and allowances Net purchases Freight in Cost of gods purchased Cost of goods available for sale Ending inventory Cost of goods sold 00 00 1,280 7,940 1870 1,350 00 250 in 1,450 40 1,230 Instruction Fill in the lettered Manks to complete the cost Abdallah ahmed alnaqbi E6-4 Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same month, 121 Xpert snowboards were sold. Elsa's uses a periodic inventory system. Date Units Unit Cost Total Cost Explanation Inventory Sept. 1 26 $ 97 $ 2,522 Sept. 12 Purchases 45 102 4,590 Sept. 19 Purchases 20 104 2,080 Sept. 26 Purchases 50 105 5,250 Totals $14,442 Instructions (a) Compute the ending inventory at September 30 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method. (b) For both FIFO and LIFO, calculate the sum of ending inventory and cost of goods sold. What do you notice about the answers you found for each method? E6-5 Ballas Co. uses a periodic inventory system. Its records show the following for the month of May, in which 68 units were sold. Units Unit Cost Total Cost May 1 Inventory 30 $8 $240 15 Purchases 25 11 275 24 Purchases 35 12 420 Totals $935 Instructions Compute the ending inventory at May 31 and cost of goods sold using the FIFO and LIFO methods. Prove the amount allocated to cost of goods sold under each method. E6-4 CALCULATE ENDING INVENTORY AND COST OF GOODS SOLD: E6-6 Moath Company reports the following for the month of June. Units Unit Cost June 1 Inventory 200 $5 Total Cost $1,000 2,400 2,100 12 Purchase 400 23 Purchase 300 30 Inventory 100 Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO and (2) LIPO. (b) Which costing method gives the higher ending inventory? Why? (c) Which method results in the higher cost of goods sold? Why? 13. S My vevd 140.0 2 54,200 3 14 Padan Se Puction Prog www 001 Accounts Date Credited May 1 May 2 May Linton 22 Corp Total cash bums cach ma R.Santiago Co of Good Sold Sales Accounts Sales Oder Discount Receivable Revense Ihr C CE Acents De Merchandise Inventory Cr Cr $40.000 $40,000 $6.300 $6.300 $4,200 $9,000 $9.000 $55,300 $9,000 541,000 $4,200 Santiago Co. Cash Payment Journal Other Accounts Cash Accounts Debited Merchandise Accounts Payable Merchandise Inventary CE Date Ref. Cr. CE May 3 Inventory 101 $7,700 $7,700 May 14 Salaries Expense 102 $700 $700 Total $7,700 5700 5700 Home work (Abdullah Ahmed Alnaqbi 201920022) PI-1A On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency. 2. Paid $600 cash for April office rent. 3. Purchased equipment for $3,000 cash. 4. Incurred $700 of advertising costs in the Chicago Tribune, on account. 5. Paid $900 cash for office supplies. 6. Performed services worth $10,000: $3,000 cash is received from customers, and the balance of $7,000 is billed to customers on account. 7. Withdrew S600 cash for personal use. 8. Paid Chicago Tribune $500 of the amount due in transaction 9. Paid employees' salaries $2,500. 10. Received $4,000 in cash from customers who have previously been billed in transaction (6). Assets Liabilities Owner equity AC Equipment Supplies A/C Owner Receivable payable capital Drawing Santiago Co. Cash Receipts Journal Cash Ref. Dr. Owner's revenue expense