M6-5 (Algo) Evaluating Inventory Cost Components (LO 6-3] Assume Anderson's General Store bought, on credit a truckload of merchandise from American Wholesaling costing $23,200. I Anderson's paid National Trucking $670 cash for transportation, immediately returned goods to American Wholesaling costing $1,100 and then paid American Wholesaling within the 1/30, 1/60 purchase discount period How much did this inventory cost Anderson's? Assume Anderson's uses a perpetual inventory system Inventory Cost E6-10 (Static) Reporting Net Sales after Sales Discounts (LO 6-4] During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follows January 6 Sold goods for $100 to Wizard Incorporated with terms 2/30, n/60. The goods cost Solitare $7e. January 6 Sold goods to Spyder Corporation for 58e with terms 5/10, n/60. The goods cost Solitare $60. January 14. Collected cash for the amount due from Wizard Incorporated. February 28 Collected cash for the amount due from Spyder Corporation. Required: Compute the Net Sales Solitare would report over the two months, Net Soles 72 Required information CP6-5 (Algo) Preparing a Multistep Income Statement and Computing the Gross Profit Percentage [LO 6- 6) [The following information applies to the questions displayed below) Psymon Company, Incorporated, sells construction equipment. The annual fiscal period ends on December 31. The following adjusted trial balance was created from the general ledger accounts on December 31 Account Titles Debits Credits Cash $ 51,47 Accounts Receivable 21,600 Inventory 78, see Property and Equipment 59,800 Accumulated Depreciation $ 24,800 Accounts Payable 36,300 Common Stock 108,000 Retained Earnings, January 1 13,400 Sales Revenue 204,800 Cost of Goods Sold 119,600 Salaries and Hages Expense 20,600 Office Expense 21,6ee Interest Expense 2,900 Income Tax Expense 12,030 Totals $ 387,300 $387,300 ces CP6-5 (Algo) Part 2 2. Compute the gross profit percentage. (Round your answer to 1 decimal place.) Gross Profit Percentage % Required information PB6-4 (Algo) Recording Journal Entry after Allocating Transaction Price to Performance Obligations [LO 6-5) (The following information applies to the questions displayed below) Sky Communcations (SKY) usually sells a cell phone for $252 plus 12 months of cellular service for $588. SKY has a special, time limited offer in which it gives the phone for free and sells the 12 months of cellular service for $480. Each phone costs SKY $140, which it accounts for in its perpetual inventory system on July 1, SKY sells one of the special packages, delivers the phone, collects the $480 cash and starts the cellular service PB6-4 (Algo) Part 1 Required: 1. For the special offer how much of the $480 relates to the sale of the cell phone versus the sale of the cellular service? Allocated Transaction Price Equipment Service
