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One looong problem.. please help with all parts... requirements... Thanks! all requirements are shown Western Trading Company purchases inventory in crates of merchandise, each crate
One looong problem.. please help with all parts... requirements... Thanks!
all requirements are shown
Western Trading Company purchases inventory in crates of merchandise, each crate of inventory is a unit. The fiscal year of Western Trading ends each January 31. Assume you are dealing with a single Western Trading store in Nashville, Tennessee. The Nashville store began the year with an inventory of 20,000 units that cost a total of $1,060,000. During the year, the store purchased merchandise on account as follows: (Click the icon to view the purchases.) Cash payments on account totaled $8,541,000. During fiscal year 2018, the store sold 155,000 units of merchandise for $15,887,500, of which $4.900.000 was for cash and the balance was on account. Western Trading and all of its stores use the average-cost method for inventories. The Nashville store's operating expenses for the year were $2,250,000. It paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 40% Read the requirements Requirement 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2018. Western Trading and all of its stores use a perpetual inventory system. Round average cost per unit to two decimal places and round all other amounts to the nearest dollar. (Record debits first, then credits. Exclude explanations from any journal entries.) Let's start with the entry to record the purchases on account. Requirements Journal Entry Date Accounts Debit Credit Jan 31 1. Make summary journal entries to record the store's transactions for the year ended January 31, 2018. Western Trading and all of its stores use a perpetual inventory system. Round average cost per unit to two decimal Accounts Payable places and round all other amounts to the nearest dollar. Accounts Receivable 2. Prepare a T-account to show the activity in the Inventory account. Cash 3. Prepare the store's income statement for the year ended January 31, 2018. Show totals for gross profit, income before tax, and net income. Cost of Goods Sold Income Tax Expense Income Tax Payable Done Inventory Operating Expenses Sales Revenue July (29,000 units at $59) $ 1,711,000 November (49,000 units at $63) 3,087,000 Choose from any list or enter any number in the input fields and then click Check Answ December (59,000 units at $69) 4,071,000 parts Total purchases $ 8,869,000 remaining Check Answer Print Step by Step Solution
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