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 Expenses Net Income (a) $75,000 $ $30,000 $ $10,800 (b) $108,000 $70,000 $ $ $29,500 (c) $ $71,900 $79,600 $39,500 $ BE5 5 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 Merchandise inventory Cost of goods sold Cash Sales Accounts receivable Accounts payable Sales discounts Sales discounts Cash Sales Accounts receivable Merchandise inventory Cost of goods sold Accounts payable BE5 6 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 Cost of Goods Sold Merchandise Inventory Sales Discounts Cash Sales Income Summary Cash Merchandise Inventory Income Summary Cost of Goods Sold Sales Sales Discounts (To close sales account ) Sales Income Summary Cost of Goods Sold Cash Merchandise Inventory Sales Discounts Merchandise Inventory Sales Discounts Cash Cost of Goods Sold Sales Income Summary Sales Discounts Cost of Goods Sold Income Summary Sales Merchandise Inventory Cash E5 3 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 Sales Sales Returns and Allowances Merchandise Inventory Cost of Goods Sold Cash Accounts Payable Accounts Receivable Merchandise Inventory Accounts Payable Accounts Receivable Sales Cost of Goods Sold Sales Returns and Allowances Cash Sept 9 Sales Returns and Allowances Sales Accounts Receivable Cost of Goods Sold Merchandise Inventory Cash Accounts Payable Sales Sales Returns and Allowances Cash Merchandise Inventory Accounts Payable Accounts Receivable Cost of Goods Sold Sept 10 Merchandise Inventory Accounts Payable Cash Accounts Receivable Cost of Goods Sold Sales Sales Returns and Allowances Sales Sales Returns and Allowances Cash Cost of Goods Sold Merchandise Inventory Accounts Payable Accounts Receivable Sept 12 Cost of Goods Sold Sales Returns and Allowances Sales Merchandise Inventory Cash Accounts Payable Accounts Receivable Accounts Receivable Accounts Payable Cost of Goods Sold Sales Returns and Allowances Merchandise Inventory Sales Cash Sales Cost of Goods Sold Accounts Payable Accounts Receivable Cash Sales Returns and Allowances Merchandise Inventory Cash Merchandise Inventory Sales Accounts Payable Accounts Receivable Cost of Goods Sold Sales Returns and Allowances (To record cost of merchandise sold ) Sept 14 Cost of Goods Sold Cash Accounts Payable Accounts Receivable Sales Merchandise Inventory Sales Returns and Allowances Cash Accounts Payable Cost of Goods Sold Sales Returns and Allowances Merchandise Inventory Sales Accounts Receivable Cost of Goods Sold Sales Accounts Receivable Accounts Payable Sales Returns and Allowances Merchandise Inventory Cash Sales Returns and Allowances Cash Cost of Goods Sold Accounts Payable Merchandise Inventory Accounts Receivable Sales (To record cost of merchandise sold ) Sept 20 Accounts Receivable Merchandise Inventory Sales Returns and Allowances Cash Cost of Goods Sold Accounts Payable Sales Accounts Receivable Cash Accounts Payable Cost of Goods Sold Merchandise Inventory Sales Returns and Allowances Sales Sales Returns and Allowances Accounts Payable Sales Cost of Goods Sold Merchandise Inventory Cash Accounts Receivable Sales Returns and Allowances Sales Accounts Payable Cost of Goods Sold Merchandise Inventory Cash Accounts Receivable (To record cost of merchandise sold ) E5 8 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 Income Summary Rent Expense Rogers, Capital Sales Discounts Freight out Insurance Expense Salary Expense Sales Returns and Allowances Cost of Goods Sold Merchandise Inventory Sales Sales Salary Expense Sales Discounts Freight out Income Summary Sales Returns and Allowances Insurance Expense Rogers, Capital Cost of Goods Sold Merchandise Inventory Rent Expense (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 Merchandise Inventory Freight out Sales Discounts Income Summary Rogers, Capital Insurance Expense Rent Expense Sales Returns and Allowances Salary Expense Sales Cost of Goods Sold Sales Rent Expense Cost of Goods Sold Salary Expense Rogers, Capital Freight out Insurance Expense Sales Discounts Sales Returns and Allowances Income Summary Merchandise Inventory (To close income statement accounts with credit balances ) Salary Expense Rent Expense Cost of Goods Sold Sales Insurance Expense Sales Discounts Rogers, Capital Sales Returns and Allowances Freight out Income Summary Merchandise Inventory Cost of Goods Sold Sales Returns and Allowances Merchandise Inventory Sales Rent Expense Salary Expense Sales Discounts Income Summary Rogers, Capital Freight out Insurance Expense Sales Sales Returns and Allowances Cost of Goods Sold Sales Discounts Insurance Expense Salary Expense Income Summary Freight out Merchandise Inventory Rogers, Capital Rent Expense Income Summary Cost of Goods Sold Freight out Rogers, Capital Rent Expense Merchandise Inventory Insurance Expense Sales Salary Expense Sales Discounts Sales Returns and Allowances Insurance Expense Income Summary Freight out Merchandise Inventory Sales Cost of Goods Sold Rent Expense Salary Expense Sales Returns and Allowances Sales Discounts Rogers, Capital Insurance Expense Rent Expense Rogers, Capital Salary Expense Cost of Goods Sold Freight out Merchandise Inventory Sales Discounts Sales Returns and Allowances Sales Income Summary Insurance Expense Income Summary Rogers, Capital Sales Returns and Allowances Sales Freight out Sales Discounts Cost of Goods Sold Rent Expense Merchandise Inventory Salary Expense Salary Expense Sales Discounts Sales Sales Returns and Allowances Rogers, Capital Freight out Cost of Goods Sold Merchandise Inventory Income Summary Insurance Expense Rent Expense (To close income statement accounts with debit balances ) Freight out Sales Discounts Insurance Expense Sales Returns and Allowances Rent Expense Cost of Goods Sold Merchandise Inventory Salary Expense Income Summary Rogers, Capital Sales Freight out Income Summary Merchandise Inventory Insurance Expense Sales Discounts Sales Returns and Allowances Rent Expense Salary Expense Cost of Goods Sold Rogers, Capital Sales (To close net income to capital ) E5 13 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 Company Mayo Company 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 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 Cash Sales Discounts Accounts Receivable Sales Returns Allowances Cost of Goods Sold Merchandise Inventory Sales Accounts Payable

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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

Presented below are the components in Waegelain Company's income statement. Determine the missing amounts.

	Sales	Cost of Goods Sold	Gross Profit	Operating Expenses	Net Income
(a)	$75,000	$	$30,000	$	$10,800
(b)	$108,000	$70,000	$	$	$29,500
(c)	$	$71,900	$79,600	$39,500	$

BE5-5

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

BE5-6

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


(To close sales account.)

E5-3

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

Sept. 9

Sept. 10

Sept. 12



	(To record cost of merchandise sold.)
Sept. 14



	(To record cost of merchandise sold.)
Sept. 20



	(To record cost of merchandise sold.)

E5-8

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

(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


(To close income statement accounts with credit balances.)








(To close income statement accounts with debit balances.)


(To close net income to capital.)

E5-13

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 Company	Mayo Company
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

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