Question
BE5-1 Presented below are the components in Waegelain Company's income statement. Determine the missing amounts. Sales Cost of Goods Sold Gross Profit Operating
BE5-1 |
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Presented below are the components in Waegelain Company's income statement. Determine the missing amounts.
| Sales | Cost of | Gross | Operating | Net |
(a) | $75,000 | $ | $30,000 | $ | $10,800 |
(b) | $108,000 | $70,000 | $ | $ | $29,500 |
(c) | $ | $71,900 | $79,600 | $39,500 | $ |
BE5-5 |
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At year-end the perpetual inventory records of Garbo Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $96,500. Record the necessary adjusting entry.
Description/Account | Debit | Credit |
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BE5-6 |
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Bleeker Company has the following merchandise account balances: Sales $195,000, Sales Discounts $2,000, Cost of Goods Sold $105,000, and Merchandise Inventory $40,000. Prepare the entries to record the closing of these items to Income Summary. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.
Description/Account | Debit | Credit |
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(To close sales account.) |
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E5-3 |
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On September 1, Howe Office Supply had an inventory of 30 pocket calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. | 6 | Purchased 80 calculators at $20 each from De Vito Co. for cash. |
| 9 | Paid freight of $80 on calculators purchased from De Vito Co. |
| 10 | Returned 2 calculators to De Vito Co. for a $42 credit (including freight) because they did not meet specifications. |
| 12 | Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. |
| 14 | Granted credit of $31 Mega Book Store for the return of one calculator that was not ordered. |
| 20 | Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30. |
Instructions
Journalize the September transactions.
Date | Description/Account | Debit | Credit |
Sept. 6 |
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Sept. 9 |
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Sept. 10 |
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Sept. 12 |
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| (To record cost of merchandise sold.) |
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Sept. 14 |
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| (To record cost of merchandise sold.) |
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Sept. 20 |
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| (To record cost of merchandise sold.) |
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E5-8 |
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Presented is information related to Rogers Co. for the month of January 2010.
| Ending inventory per perpetual records | $21,600 |
| Ending inventory actually on hand | 21,000 |
| Cost of goods sold | 218,000 |
| Freight out | 7,000 |
| Insurance expense | 12,000 |
| Rent expense | 20,000 |
| Salary expense | 61,000 |
| Sales discounts | 10,000 |
| Sales returns and allowances | 13,000 |
| Sales | 350,000 |
Instructions
(a) Prepare the necessary adjusting entry for inventory.
Description/Account | Debit | Credit |
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(b) Prepare the necessary closing entries. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Description/Account | Debit | Credit |
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(To close income statement accounts with credit balances.) | ||
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(To close income statement accounts with debit balances.) | ||
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(To close net income to capital.) |
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E5-13 |
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Presented below is financial information for two different companies.
Instructions
(a) Determine the missing amounts. (Enter all amounts as positive and subtract where necessary.)
| Nam | Mayo |
Sales | $90,000 | $ |
Sales returns | 5,000 | |
Net sales | 84,000 | 100,000 |
Cost of goods sold | 56,000 | |
Gross profit | 41,500 | |
Operating expense | 15,000 | |
Net income | 15,000 |
(b) Determine the gross profit rates. (Round answers to one decimal place, e.g. 10.5.)
Nam Company | % |
Mayo Company | % |
P5-1A |
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Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,200. During the month of July the following merchandising transactions occurred.
July | 1 | Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date. |
| 3 | Sold suitcases on account to Satchel World for $2,000. The cost of suitcases sold is $1,200. |
| 9 | Paid Trunk Manufacturers in full. |
| 12 | Received payment in full from Satchel World. |
| 17 | Sold suitcases on account to The Going Concern for $1,500. The cost of the suitcases sold was $900. |
| 18 | Purchased suitcases on account for $1,700 from Kingman Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date. |
| 20 | Received $300 credit (including freight) for suitcases returned to Kingman Manufacturers. |
| 21 | Received payment in full from The Going Concern. |
| 22 | Sold suitcases on account to Fly-By-Night for $2,250. The cost of suitcases sold was $1,350. |
| 30 | Paid Kingman Manufacturers in full. |
| 31 | Granted Fly-By-Night $200 credit for suitcases returned costing $120. |
Sansomite's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 505 Cost of Goods Sold.
Instructions
Journalize the transactions for the month of July for Sansomite using a perpetual inventory system. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Date | Description/Account | Debit | Credit |
July 1 |
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