O PROBLEM SET A Problem 51A Preparing journal entries for merchandising activities P1 P2 Check July 12, Dr. Cash. $332 July 16. Cr. Cash. $5.940 July 24, Cr. Cash. $1,960 Jul).r 30. Dr. Cash. $1.0?8 \"connect Prepare journal entries to record the following merchandising transactions of Cabela's, which uses the perpetual inventory system and the groas method. July 1 2 m 1] 12 16 19 2] 24 30 3] Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Sold merchandise to Creek Co. for $900 under credit terms of 2/ 10, n/60. FOB shipping point, invoice dated July 2. The merchandise had cost 3500. Paid $125 cash for height charges on the purchase of July 1. Sold merchandise that had cost $1,300 for $1,700 cash. Purchased merchandise from [eight Co. for $2,200 under credit terms of 2/15. n/60, FOB destination, invoice dated July 9. Returned $200 of merchandise purchased on July 9 from Lei ght Co. and debited its account payable for that amount. Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. Paid the balance due to Boden Company within the discount period. Sold merchandise that cost $300 to Art Co. for $1,200 under credit terms of 2f15, n/60, FOB shipping point, invoice dated July 19. Gave 3 price reduction (allowance) of $100 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. Paid Leight Co. the balance due, net of discount. Received the balance due from Art Co. for the invoice dated July 19, net of discount. Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 . 1. Problem 5-1A, 2. Problem 5-1B, 3. Problem 6-1A (for FIFO & LIFO only, you may ignore average cost and specific identification), 4. Problem 6-1B (for FIFO & LIFO only, you may ignore average cost and specific identification), 5. GP practice set B (contained in the Chapter 5 & 6 files folder), 6. GP practice set C (contained in the Chapter 5 & 6 files folder).PROBLEM SET B Problem 5-1 B Preparing journal entries for merchandising activities P1P2 Chock May 14, Dr. Cash, $10380 Prepare journal entries to record the following merchandising transactions of IKEA, which uses the per- petual inv-iory system and gross method. May 2 4 5 9 10 12 14 1? Purchased merchandise from Havel Co. for $10,000 under credit terms of l {15. n [30. FOB shipping point, invoice dated May 2. Sold merchandise to Rath Co. for $11,000 under credit terms of 2/10, nf60. FOB shipping point. invoice dated May 4. The merchandise had cost $5.600. Paid $250 cash for freight charges on the purchase of May 2. Sold merchandise that had cost $2,000 for $2,500 cash. Purchased merchandise from Duke Co. for $3,650 under credit terms of 2[15, nfo, FOB des- tination, invoice dated May 10. Returned $650 of merchandise purchased on May 10 from Duke Co. and debited its account payable for that amount. Received the balance due from Rath Co. for the invoice dated May 4. net of the discount. Paid the balance due to Havel Co. within the discount period. 20 22 25 30 31 Sold merchandise that cost $1,450 to Tamer Co. for $2,812!) under credit terms of 2/15, n X60. FOB shipping point, invoice dated May 20. Gave :1 price reduction (allowance) of $303 to Tamer Co. for merchandise sold on May 20 and credited Tamer's accounts receivable for that amount. Paid Duke Co. the balance due. net of the discount. Received the balance due from Tamer Co. for the invoice dated May 20, net of discount and allowanee. Sold merchandise that cost $3,600 to Rath Co. for $7,200 under credit terms of 2/10, n/60, FOE shipping point, invoice dated May 31. May 1?. Cr. Cash. $9,900 May 30, Dr. Cash, $2,450 PROBLEM SET A Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, units sold consist of 80 units from beginning Problem 6-1A inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from Perpetual: Alternative the March 25 purchase. cost flows P1 Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory . . . . 100 units @ $50 per unit Mar. 5 Purchase . . . . . . . . . . . 400 units @ $55 per unit Mar. 9 Sales. . . . . . .... 420 units @ $85 per unit Mar. 18 Purchase . . . . . . . . . . .. 120 units @ $60 per unit Mar. 25 Purchase 200 units @ $62 per unit Mar. 29 Sales. .. . . . . . ......... 160 units @ $95 per unit Totals 820 units 580 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3.Ming Company uses a perpetual inventory system. It entered into the following purchases and sales trans- PROBLEM SET B actions for April. (For specific identification, units sold consist of 20 units from beginning inventory, 30 units from the April 6 purchase, and 10 units from the April 25 purchase.) Problem 6-1B Perpetual: Alternative Date Activities Units Acquired at Cost Units Sold at Retail cost flows Apr. 1 Beginning inventory . ... 20 units @ $3,000 per unit P1 Apr. 6 Purchase .. . ...... .... 30 units @ $3,500 per unit Apr. 9 Sales . . . . . .. ......... 35 units @ $12,000 per unit Apr. 17 Purchase . . 5 units @ $4,500 per unit Apr. 25 Purchase . ... ..... 10 units @ $4,800 per unit Apr. 30 Sales . .. 25 units @ $14,000 per unit Total. 65 units 60 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3.A review of the general ledger of Silicon R Us, Inc. provides the following data for the FYE 12-31-2019 Sales Revenue $4,276,000 Inventory at 12-31-2018 $1,425,975 Purchases in 2019 $1,935,200 Silicon R Us, Inc. employs a pricing model that yields 27.5% gross profit on sales. Required: A. Calculate and write in the following information: 1 Write in the Cost of Goods Available for Sale (COGAFS): 5 2 Write in your expectation of Cost of Goods Sold (COGS): 5 3 Write in your expectation of Gross Profit (GP): 5 4 Write in your expectation of Ending Inventory: 5 Use this space for your calculations: If a physical count of Ending Inventory revealed inventory on hand at December 31, 2019 actually $150,350 select the best reason as to why? A] Some inventory was lost or stolen B) Sales were understated for the period C) Accounts Payable are understated D) Accounts Payable are overstated E) Accounts Receivable are understated F) Accounts Receivable are overstated A review of the general ledger of East Hills Company provides the following data for the FYE 12-31-2019 Sales Revenue 55,455,890 Inventory at 12-31-2018 $654,900 Purchases in 2019 $2,996,980 The Company employs a pricing model that yields 45% gross profit on sales. Required: A. Calculate and write in the following information: 1 Write in the Cost of Goods Available for Sale (COGAFS): 2 Write in your expectation of Cost of Goods Sold (COGS): 3 Write in your expectation of Gross Profit (GP): 4 Write in your expectation of Ending Inventory: Use this space for your calculations: If a physical count of Ending Inventory revealed inventory on hand at December 31, 2019 actually $1,100,350 select the best reason as to why? A] Some inventory was lost or stolen B) Sales were understated for the period C) Sales were overstated for the period C) Accounts Payable are understated 0) Accounts Receivable are overstated