I need help with the attached document. Please see the attached document for accounting lesson 5.1

Assignment 5.1 Handout 1. You may have shopped at a Ronny's store. Suppose Ronny's purchased T-shirts on account for $18,130. Credit terms are 3/15, n/45. Ronny's paid within the discount period. Requirements R1. If Ronny's uses a periodic inventory system, when will the purchase of inventory be recorded as an expensewhen it is purchased or when it is sold? R2. If Ronny's uses the perpetual inventory system, when will the purchase of inventory be recorded as an expensewhen it is purchased or when it is sold? 2. Suppose The Funhouse, Inc., buys $105,900 worth of PegaBlock toys on credit terms of 2/10, n/45. Some of the goods are damaged in shipment, so Funhouse returns $10,540 of the merchandise to PegaBlock. Requirement R1. How much must The Funhouse pay PegaBlock: a. After the discount period? b. Within the discount period? 3. Refer to the Funhouse facts in problem #2. Requirements R1. Journalize the following transactions. Explanations are not required. a. Purchase of the goods on July 8, 2011. b. Return of the damaged goods on July 12, 2011. c. Payment on July 15, 2011. R2. In the final analysis, how much did the inventory cost Funhouse? 4. Suppose a BullsEye store purchases $60,000 of women's sportswear on account from Muddy John on July 1, 2011. Credit terms are 2/10, net 45. BullsEye pays electronically, and Muddy John receives the money on July 10, 2011. Requirements R1. Journalize BullsEye's transactions for July 1, 2011, and July 10, 2011. R2. What was BullsEye's net cost of this inventory? 5. Consider the facts in problem #4 as they apply to the seller, Muddy John. Muddy John sells $60,000 of women's sportswear to a BullsEye store under credit terms of 2/10, net 45. The goods cost Muddy John $32,000. Requirement R1. Journalize Muddy John's transactions for July 1, 2011, and July 10, 2011. 1 6. Suppose Southam.com sells 2,000 books on account for $19 each (cost of these books is $22,800) on October 10, 2010. One hundred of these books (cost $1,140) were damaged in shipment, so Southam.com later received the damaged goods as sales returns on October 13, 2010. Then the customer paid the balance on October 22, 2010. Credit terms offered to the customer were 2/20, net 45. Requirement R1. Journalize Southam.com's October, 2010 transactions. 7. Use the data in problem #6 for Southam.com. Requirements R1. Calculate net sales revenue for October, 2010. R2. Calculate gross profit for October, 2010. 8. Josh's Furniture's Inventory account at year-end appeared as follows: The physical count of inventory came up with a total of $66,700. Requirement R1. Journalize the adjusting entry. 9. Hart RV Center, Inc.'s, accounting records include the following accounts at December 31, 2010: Requirement R1. Journalize the required closing entries for Hart RV Center for December 31, 2010. 2 10. Texas Communications, Corp., reported the following figures in its financial statements (amounts in thousands): Requirement R1. Prepare the business's multi-step income statement for the year ended May 31, 2011. 11. Review the data in problem #10. Requirement R1. Prepare Texas Communications' classified balance sheet at May 31, 2011. Use the report format. 12. Refer to the Texas Communications data in problems #10 and #11. Requirement R1. Calculate the gross profit percentage and rate of inventory turnover for 2011. One year earlier, at May 31, 2010, Texas' inventory balance was $325. 13. The following characteristics are related to either periodic inventory or perpetual inventory systems. Requirement R1. Identify each characteristic as one of the following: a. Periodic inventory b. Perpetual inventory c. Both periodic and perpetual inventory d. Neither periodic nor perpetual inventory. 3 14. The following transactions occurred during February, 2012, for Angel Garden Gifts, Inc.: Requirement R1. Journalize the February transactions for Angel Garden Gifts. No explanations are required. 15. The trial balance and adjustments columns of the work sheet of Long Pond Business Systems, Co., at January 31, 2011, follow: Requirements R1. Compute the adjusted balance for each account that must be closed. R2. Journalize the required closing entries at January 31, 2011. R3. How much was Long Pond's net income or net loss? 4