P5-3B Presented here are selected transactions for Shaoshi Inc. during October of the current year. Shaoshi uses a perpetual inventory system. 1 Purchased merchandise on account from Micron Ltd. at a cost of $86,000, terms 1/15, n/30, FOB shipping point. Oct. Freight charges of $1,400 were paid by the appropriate party on the October 1 purchase of merchandise. Returned for credit $4,000 of damaged goods purchased from Micron on October 1. Purchased supplies for $2,800 cash. Sold the remaining merchandise purchased from Micron to Guidant Corp. for $140,00o on account, terms 2/10, n/30, FOB destination. Freight charges of $2,300 were paid by the appropriate party on the October 8 sale of merchandise. Purchased equipment on account for $62,000. 1 2 6 8 9 10 Guidant returned damaged merchandise that was purchased on October 8 for a $3.500 credit on 12 account. The merchandise originally cost $2,185 and was not restored to inventory. Purchased merchandise for $36,300 cash. Received the balance owing from Guidant. Sold merchandise for $30,000 on account to Deux Lte, terms 2/10, n/30, FOB shipping point. The merchandise had a cost of $18,000. 15 17 28 Freight charges of $750 were paid by the appropriate party on the October 28 sale of merchandise. Paid Micron the balance owing. 29 30 Deux returned some of the merchandise that was purchased on October 28 for a $5,000 credit on 31 account. The merchandise originally cost $3,000 and was restored to inventory. Instructions (a) Record the October transactions. (b) Assume that Shaoshi took advantage of the 1% purchase discount offered by Micron Ltd. and paid Micron on October 14 rather than October 30. Record the entry that Shaoshi would make on October 14 and determine the cost of missing this purchase discount to Shaoshi. P5-6B (P5-8) The adjusted trial balance of Brigus Wholesale Ltd. contained the following accounts at November 30, the company's fiscal year end: BRIGUS WHOLESALE LTD. Adjusted Trial Balance November 30, 2018 Debit Credit Cash $ 35,000 Accounts receivable 96,300 Notes receivable 28,200 Inventory 15,600 Supplies 4.900 Land 580,000 Buildings Accumulated depreciation-buildings 452,000 45,200 Equipment 326,000 Accumulated depreciation-equipment 81,500 Accounts payable 79,800 Income tax payable Unearned revenue 18,200 32,100 Bank loan payable 205,000 Common shares 500,000 546,700 I 2,234,800 Retained earnings Sales 12,800 Sales returns and allowances Sales discounts 11,400 1,387,200 366,000 Cost of goods sold Administrative expenses 286,000 Selling expenses 12,300 Interest expense 2,800 Interest revenue 32,400 Income tax expense $3.746,100 $3.746,100 Instructions (a) Prepare a multiple-step income statement. (b) Calculate the profit margin and gross profit margin. P6-4B (P6-5B) BigFishTackle Co. Ltd. reports the following inventory transactions for its fishing rods for the month of April. The company uses a perpetual inventory system. Total Cost Explanation Beginning inventory 50 Units Unit Cost Date $11,500 $230 Ap. 1 8,400 240 Purchases 35 6 (55) Sales 9 9,800 Purchases 245 40 14 (50) Sales 20 7,500 250 Purchases 30 28 Instructions (a) Determine the cost of goods sold and cost of ending inventory using FIFO (b) Determine the cost of goods sold and cost of ending inventory using average cost. (Use unrounded numbers in your calculations but round to the nearest cent for presentation purposes in your answer.) I P6-9B FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The following inventory information is available for these products at March 31, 2018: Net Realizable Value Unit Cost Units Product $7 $7 A 25 6 30 10 60 11 Internet can contain viruses. Unless you need to eang S Sarer ro Stay m Instructions (a) Calculate FlinFlon's inventory at the lower of cost and net realizable value. (b) Prepare any journal entry required to record the LCNRV, assuming that FlinFlon uses a perpetual inventory system
