eBook Show Me How Asset turnover ratio Financial statement data for years ended December 31, 2013 and 2012, for Edison Company follow: Sales 2013 $1,760,000 2012 $1,449,000 Total assets: Beginning of 760,000 620,000 year End of year 840,000 760,000 a. Determine the asset turnover ratio for 2013 and 2012. Round answers to one decimal place. Asset turnover 2013 2012 b. Is the change in the asset turnover ratio from 2012 to 2013 favorable or unfavorable? eBook Show Me How Print hem Sales-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $38,500, terms n/30. The cost of the goods sold is $23,100. Showcase Co. issues a credit memo for $7,700 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $4,600. a. Journalize Showcase Co.'s entries for (1) the sale, including (2) the cost of the goods sold. If an amount box does not require an entry, leave it blank. (1) Accounts Receivable-Balboa Co. Sales (2) Cost of Goods Sold Inventory Check My Work a. Record transactions from the seller's perspective. Keep in mind that two entries are required for the transaction: (1) for the sale on account and (2) for the cost of the merchandise sold (expense) and inventory reduction on the seller's records. b. Journalize Showcase Co.'s entries for (1) the credit mema, including (2) the cost of the returned merchandise. If an amount box does not require an entry, leave it blank (1) Customer Refunds Payable Accounts Receivable-Balboa Co. (2) Inventory Check My Work more Check My Work uses remaining Previous Next b. Journalize Showcase Co.'s entries for (1) the credit memo, including (2) the cost of the returned merchandise. If an amount box does not require an entry, leave it biank. (3) Customer Refunds Payable Accounts Receivable-Balboa Co. (2) Inventory Accounting numeric field Estimated Returns Inventory c. Journalize Showcase Co.'s entry for the receipt of the check for the amount due from Balboa Co. If an amount box does not require an entry, leave it blank Cash Accounts Receivable-Balboa Co. 88 The cash received is the amount owed by the buyer for the sale, minus the discount and return, Accounts Receivable will be reduced by the original sale less the retin Check My Wark more Check My Working Previous Next > eBook Show Me How Print Item Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the goods sold is $152,700. Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500. a. Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank. b. Journalize Balboa Co.'s entry for the return of the merchandise for credit. If an amount box does not require an entry, leave it blank. c. Journalize Balboa Co.'s entry for the payment of the invoice. If an amount box does not require an entry, leave it blank. Previous Next Chapter 5 HW eBook Print Item CengageNOWv2 | Online teaching and learning resource from Cengage Learning Sales and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company. Both companies use the net method under a perpetual inventory system. Apr. 2. Swan Company sold merchandise on account to Bird Company, $59,300, terms FOB shipping point, 2/10, n/30. Swan paid freight of $1,710, which was added to the invoice. The cost of the goods sold was $33,610. 8. Swan Company sold merchandise on account to Bird Company, $48,100, terms FOB destination, 1/15, n/eom. The cost of the goods sold was $29,950. 8. Swan Company paid freight of $1,095 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $60,110, terms FOB shipping point, n/eom. The cost of the goods sold was $42,340. 25. Swan Company paid Bird Company a cash refund of $2,430 for damaged merchandise in the April 8 sale. Bird Company kept the merchandise. 26. Bird Company paid freight of $840 on April 24 purchase from Swan Company. 30. Bird Company paid Swan Company on account for purchase of April 24, Required: 1. Joumalize the April transactions for Swan Company (the seller), If an amount box does not require an entry, leave it blank. Date Account Apr. 2 Accounts Receivable-Bird Company Debit Credit Sales Check My Work 1 more Check My Work uses remaining Previous Submit Amianment for Gradio Book Print Item Account Date Apr. 2 Accounts Receivable-Bird Company Cash Debit Credit Date Account Debit Credit Apr. 2 Cost of Goods Sold Inventory Date Account Apr. 8 Accounts Receivable-Bird Company Sales Debit Credit Date Account Debit Credit Apr 8 Cost of Goods Sold Inventory Date Account Debit Credit Apr. 8 Delivery Expense Cash Date Check My Work Account 1 more Check My Work uses remaining Debit Credit Previous eBook PrintItem Date Apr. 12 Cash Account Accounts Receivable-Bird Company Date Apr 23 Cash Date Account Accounts Receivable-Bird Company Account Apr. 24 Accounts Receivable-Bird Company Sales Debit Credit Debit Credit Debit Credit Datel Account Debit Credit Apr. 24 Cost of Goods Sold Inventory Date Account Debit Credit Apr. 25 Accounts Payable-Bird Company Cash Check My Work 1 mom Check My Work uses remaining Previous eBook Date Print Item Account Debit Credit Apr. 30 Cash Accounts Receivable-Bird Company 2. Journalize the April transactions for Bird Company (the buyer). If an amount box does not require an entry, leave it blank. Date Apr. 2 Inventory Account Accounts Payable-Swan Company Debit Credit Date Account Debit Credit Apr. 8 Inventory < Accounts Payable-Swan Company Date Account Debit Credit Apr. 12 Accounts Payable-Swan Company Cash Date Account Debit Credit Apr. 23 Accounts Payable-Swan Company Cash Check My Work 1 more Check My Work uses remaining Email Instructor Save and Ex Date Account Apr. 23 Accounts Payable-Swan Company Date Cash Apr. 24 Inventory Account Accounts Payable-Swan Company Date Account Apr. 25 Accounts Payable-Swan Company Inventory Debit Credit Debit Credit Debit Credit Date Apr. 26 Account Debit Credit Inventory Cash Account Accounts Payable-Swan Company Date Apr 30 Cash 1 mois Check My Work uses remaining Debit Credit Previous Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: Cost of goods sold 2017 2016 $3,959,520 $4,101,140 Inventories: Beginning of year 788,400 759,200 End of year 861,400 788,400 Required a. Determine the inventory turnover for 2017 and 2016. Round to one decimal place. Inventory turnover 2017 2016 b. Determine the number of days sales in inventory for 2017 and 2016. Use 365 days and round to one decimal place. Number of days' sales in inventory 2017 2016 days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 2016 to 2017 favorable or unfavorable? Unfavorable Check My Workmore Check My work as mang Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $40 Apr. 19 Sale 2,500 units Purchase 4,500 units at $44 Sale 5,000 units June 30 Sept. 2 Nov. 15 Purchase 2,000 units at $46 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Schedule of Cost of Goods Sold Weighted Average Cost Flow Method Date Quantity Purchases Unit Cost Cost of Goods Sold Inventory Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Jan. 1 4,000 20 Apr. 19 2,500 20 x 50,000 x 1,500 20 June 30 6,000 x 24 X 144,000 X 7,500 x 23.2 Sept. 2 4,500 X 23.2 X 104,400 X 3,000 X 23.2 Nov 15 1,000 X 25 X 25,000 x 4,000 X 23.65 (Dec. 31 Balances 154,400 X 4,000 X 23.65 Perpetual Inventory Using FIFO The following units of a particular item were available for sale during the calendar year: Jan. 1 Apr. 19 Inventory 4,000 units at $40 Sale 2,500 units June 30 Purchase 4,500 units at $44 Sept. 2 Nov. 15 Sale 5,000 units Purchase 2,000 units at $46 The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form Wustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Invertory Unit Cost column. Schedule of Cost of Goods Sold FIFO Method Cost of Goods Sold Date Jan, 1 Quantity Purchases Unit Cost Total Cost Quantity Apr 19 June 30 Dept. 2 Unit Cost Inventor Total Cost Quantity Unit Cost Sept. 2 Nov 15 Sale Purchase 2,000 units at $45 The fem maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form ustrated in Exhibit 3 Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cest column Schedule of Cost of Goods Sold FIFO Method Purchases Cost of Goods Sold Inventory Date Jan 1 Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr 19 June 30 Sept 2 Nov 15 Dec 31 Perpetual Inventory Using LIFO The filling units of a particular item were available for sale during the calendar year 1 Inventory 4,000 units at $40 Apt 19 Sale 2,500 units Purchase Sale 4,500 units at $44 5,000 units Purchase 2.000 us at 345 Sept. 2 Nov 15 The fm maintains a perpetual mentary system, Determine the cost of goods said for each sale and the mventory balance after each sale, assuming the lastin, frst out method. Present the data in the m trated in Under LFO, if units are in inventory at two or more different case the units with the LOWER unit cast frst in the Inventory Unit Cest colum Schedule of Cost of Goods Sold LIFO Methad Date Quantity Purchases Unit Cost Cost of Goods Sold Inventory Total C Quantity Unit C Total Cost Quantity Unit Cust Total Cost [1] JA 19 Check My thrkmak My lustrated in Exhibit 4. Under LIFO, if units are in inventory at two or more different costs, enter the units with the LOWER unit cost first in the Inventory Unit Cost column. Schedule of Cost of Goods Sold LIFO Method Purchases Cast of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cest Total Cost Jan. 1 Apr. 19 June 30 Sept. 21 Nov, 15 Dec 33 Balances Pravou