Question
eBook Purchases and Sales of Merchandise, Cash Flows Speedy Cycle, a bike shop, opened for business on April 1. It uses a periodic inventory system.
eBook
Purchases and Sales of Merchandise, Cash Flows
Speedy Cycle, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business:
Required:
For all accounting equations, if a financial statement item is not affected, select "No Entry" and leave the amount box blank or enter "0". If the effect is negative, use the minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.
1. Identify and analyze each of the following transactions of Speedy Cycle.
April 1: Purchased five units from Lucas Corp. for $600 total, with terms 3/10, n/30, FOB destination.
| Activity | FinancingOperatingInvesting |
| Accounts | Account Payable Increase, Purchases IncreaseAccount Payable Increase, Purchases DecreaseAccount Payable Decrease, Purchases IncreaseAccount Payable Decrease, Purchases Decrease |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 57044801503bfdb_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 57044801503bfdb_4 | fill in the blank 57044801503bfdb_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 57044801503bfdb_7 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 57044801503bfdb_9 | fill in the blank 57044801503bfdb_10 | |||||
April 10: Paid for the April 1 purchase.
| Activity | FinancingInvestingOperating |
| Accounts | Cash Increase, Account Payable IncreaseCash Decrease, Account Payable DecreaseCash Increase, Account Payable DecreaseCash Decrease, Account Payable Increase |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank c24d5ef3a00b047_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank c24d5ef3a00b047_4 | fill in the blank c24d5ef3a00b047_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank c24d5ef3a00b047_7 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank c24d5ef3a00b047_9 | fill in the blank c24d5ef3a00b047_10 | |||||
April 15: Sold one unit for $200 cash.
| Activity | FinancingInvestingOperating |
| Accounts | Cash Increase, Sales Revenue IncreaseCash Increase, Sales Revenue DecreaseCash Decrease, Sales Revenue IncreaseCash Decrease, Sales Revenue Decrease |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank e08a8e077fac06f_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank e08a8e077fac06f_4 | fill in the blank e08a8e077fac06f_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank e08a8e077fac06f_7 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank e08a8e077fac06f_9 | fill in the blank e08a8e077fac06f_10 | |||||
April 18: Purchased ten units from Solo Corp. for $900 total, with terms 3/10, n/30, FOB destination.
| Activity | FinancingInvestingOperating |
| Accounts | Account Payable Increase, Purchase IncreaseAccount Payable Increase, Purchase DecreaseAccount Payable Decrease, Purchase IncreaseAccount Payable Decrease, Purchase Decrease |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 01c6f0042fe0fad_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 01c6f0042fe0fad_4 | fill in the blank 01c6f0042fe0fad_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 01c6f0042fe0fad_7 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank 01c6f0042fe0fad_9 | fill in the blank 01c6f0042fe0fad_10 | |||||
April 25: Sold three units for $200 each, cash.
| Activity | FinancingInvestingOperating |
| Accounts | Cash Increase, Sales Revenue IncreaseCash Increase, Sales Revenue DecreaseCash Decrease, Sales Revenue IncreaseCash Decrease, Sales Revenue Decrease |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank dfda3c094fe1f9a_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank dfda3c094fe1f9a_4 | fill in the blank dfda3c094fe1f9a_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank dfda3c094fe1f9a_7 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank dfda3c094fe1f9a_9 | fill in the blank dfda3c094fe1f9a_10 | |||||
April 28: Paid for the April 18 purchase.
| Activity | FinancingInvestingOperating |
| Accounts | Cash Increase, Account Payable IncreaseCash Decrease, Account Payable DecreaseCash Increase, Account Payable DecreaseCash Decrease, Account Payable Decrease |
| Statement(s) | Balance Sheet onlyBalance Sheet and Income StatementIncome Statement only |
How does this entry affect the accounting equation?
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
| Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank ab26b7ffb078061_2 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank ab26b7ffb078061_4 | fill in the blank ab26b7ffb078061_5 | Accounts PayableAccounts ReceivableCashInventoryPurchasesPurchase DiscountsPurchase Returns and AllowancesSales RevenueTransportation-inNo Entry | fill in the blank ab26b7ffb078061_7 | ||||||||
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
4th Edition
0324069731, 978-0324069730
