Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(I've already completed the majority of the assignment and my answers are below. I can't figure out g) Prepare an answer sheet with the column

(I've already completed the majority of the assignment and my answers are below. I can't figure out g)

Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases only one column may be affected because all of the specific accounts affected by the transaction are included in that category.

image text in transcribed

Check my a. Accrued interest revenue of $35 on a note receivable. b. Paid $3,400 in cash as an advance rent payment for a short-term lease that covers the next four months. c. Recorded an adjustment at the end of the first month (in b) to show the amount of rent "used" in the month. d. Inventory was acquired on account and recorded for $720. Perpetual inventory is maintained. e. It was later determined that the amount of inventory acquired on account (in d) was erroneously recorded. The actual amount purchased was only $270. No payments have been made. Record the correction of this error. f. Purchased 32 units of inventory at a cost of $54 each and then 18 more units of the same inventory item at $60 each. Perpetual inventory is maintained. g. Sold 33 of the items purchased (in f) for $84 each and received the entire amount in cash. Record the sales transaction and the cost of goods sold using the LIFO cost flow assumption. Perpetual inventory is maintained. h. Assume the same facts (in g) except that the company uses the FIFO cost flow assumption. Record only the cost of goods sold. i. Assume the same facts (in g) except that the company uses the weighted-average cost flow assumption. Record only the cost of goods sold. (Do not round your intermediate calculation.) Transaction Current Assets Current Liabilities Stockholders' Equity Net Income a. Interest receivable +35 Interest revenue +35 b. Cash -3,400 C. Rent expense -850 d. Prepaid rent +3,400 Prepaid rent -850 Inventory +720 Inventory -450 Inventory +2,808 Cash -2,808 Cash +2,772 Accounts payable +720 Accounts payable -450 e. f. g. Sales +2,772 h. Inventory -1,788 Inventory -1,853 Cost of goods sold -1,788 Cost of goods sold -1,853

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

9780470128848

More Books

Students also viewed these Accounting questions

Question

=+1. How will you measure awareness objectives?

Answered: 1 week ago

Question

=+2. How will you measure acceptance objectives?

Answered: 1 week ago

Question

What distinguishes craft and industrial unions from each other?

Answered: 1 week ago