Please answer questions 1,2,6, and 7 using the spreadsheets provided.

I-05.01 Tic Toc Clock Shop reported the following merchandising-related transactions during June. Tic Tock Clock Shop records all purchases "gross," and credit terms are precisely followed on both purchases and sales. Prepare journal entries to record each transaction. 3-Jun Purchased $4,000 of clocks on account from Swiss Time, F.O.B. destination, terms 1/10, n/30. 5-Jun Sold a $1,500 clock to Janci Holgren on account, terms 2/10, n/eom. The customer picked up the clock from the shop. 9-Jun Paid the amount due for the purchase of June 3. 11-Jun Purchased $8,000 of clocks on account from Melbourne Clockworks, F.O.B. shipping point, terms 2/10, n/30. Freight charges of $460 were prepaid by Melbourne and added to the invoice. No discount is permitted on the freight charges. 19-Jun Sold a $3,500 clock on account, terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination, and paid the freight charges of $330. 23-Jun The customer of June 19 called to report that the clock was received damaged. An agreement was reached to reduce the invoice by 20%. 27-Jun Paid Melbourne Clockworks for the purchase of June 11. 27-Jun Janci Holgren paid for the purchase of June 5. 28-Jun The customer of June 19 paid the balance due. I-05.01 I-05.01 I-05.01 Name: Date: I-05.01 Section: GENERAL JOURNAL Date Page Accounts 3-Jun Purchased clocks on account, terms 1/10,n/30 5-Jun Sold clock on account, terms 2/10, n/eom 9-Jun Paid for the puchase of June 3, taking the 1% discount 11-Jun Purchased clocks on account, 2/10,n/30, F.O.B. shipping point 19-Jun Sold clock on account, 2/10, n/eom, F.O.B. destination 23-Jun Reduced balance due from customer on account of damage Debit Credit B05.01(a) Name: Date: I-05.01 Section: GENERAL JOURNAL Date Page Accounts 27-Jun Paid the full amount due for the purchase of June 11 27-Jun Collected the amount due for the sale on June 5 28-Jun Collected remaining amount for June 19 sale, less 2% discount Debit Credit Name: Date: B05.01(a) Section: I-05.01 Name: Date: Section: I-05.01 Patti Devine owns Devine Decorating. One of her most popular items is the Remind-aChime digital clock. This programmable clock issues "voice-based" reminders of important events like birthdays, anniversaries, etc. Following is the Remind-a-Clock inventory activity for January. January 1 had a unit cost of $140. Date Purchases The clocks on hand at Sales 1-Jan 5-Jan 40 60 units @ $150 each 16-Jan 23-Jan 28-Jan Units on Hand 100 70 units @ $255 each 90 units @ $170 each 30 120 55 units @ $295 each 65 (a) If Devine uses the first-in, first-out (FIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (b) If Devine uses the last-in, first-out (LIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (c) If Devine uses the weighted-average inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? B-08.0 B-08.04 (a) FIFO Beginning inventory B-08.0 $ Plus: Purchases Cost of goods available for sale $ Less: Ending inventory Cost of goods sold $ - Sales $ - Gross profit $ - $ - LIFO Beginning inventory Plus: Purchases Cost of goods available for sale $ Less: Ending inventory - Cost of goods sold $ - Sales $ - Cost of goods sold Gross profit (c) - Cost of goods sold (b) - $ - $ - Weighted-average Beginning inventory Plus: Purchases Cost of goods available for sale $ Less: Ending inventory - Cost of goods sold $ - Sales $ - Cost of goods sold Gross profit $ - B-08.04 The Quilting Pad is a retail store that sells materials for custom quilts. The store has a quilting room where quilters gather to sew and visit. The store's inventory consists of bolts of fabrics, spools of thread, and trays of various batting and backing material. Customers generally select what they need and pay for what they use. The retail price of goods is clearly marked on the bolts, spools, and trays. The Quilting Pad has virtually no problem with theft or shortages of inventory. It is virtually impossible to track inventory in any detailed fashion. The store simply marks up all goods by a constant percentage. The mark up formula has been consistently applied to all items in inventory for many years. The Quilting Pad uses the retail inventory technique. Following is information for 20X7: Beginning inventory at cost $ 46,800 Beginning inventory at retail Cost of purchases of inventory during the year 78,000 230,000 At the end of the year, the Quilting Pad's inventory was physically counted, and it was determined that $100,000 was the retail value of goods on hand. Calculate the cost to retail percentage by analyzing the beginning inventory data. Apply the retail method to estimate the sales and gross profit for 20X7. B-08.10 B-08.10 The cost to retail percentage is __________. B-08.1 The following analysis shows that sales of__________ were matched with cost of sales of _____________. This results in gross profit of _______________. At Cost (___% of retail) Beginning inventory $ Purchases* Goods available for sale * Purchases at retail = ** Ending inventory at cost = $ 230,000 $ Sales Ending inventory** 46,800 At Retail - $ $ - 78,000 - $ 100,000 B-08.10 Dine-Corp International publishes ratings and reviews of the world's finest restaurants. Following are facts you need to prepare Dine-Corp's March bank reconciliation: Balance per company records at end of month Bank service charge for the month NSF check returned with bank statement Note collected by the bank during the month Outstanding checks at month end Interest on note collected during the month Balance per bank at end of month Deposit in transit at month end $ 72,644.12 44.00 1,440.66 45,000.00 31,553.57 4,500.00 144,223.99 7,989.04 B-06.03 B-06.03 B-06.03 Ending balance per bank statement $ 144,223.99 Add: - Deduct: - Correct cash balance $ Ending balance per company records $ - 72,644.12 Add: $ - - Deduct: - Correct cash balance - $ - B-06.03 Park Place Luxury Autos uses the specific identification method to Date of automobiles that were either value its inventory. Below is a listing Automobile Acquired in beginning inventory or acquired during the year: Cost Bentley Beginning inventory ### Rolls Royce Beginning inventory ### Cadillac January 40,000 Lexus March 50,000 Land Rover June 60,000 Jaguar July 42,000 Porsche September 75,000 Mercedes November 85,000 BMW December 64,000 Infiniti December 39,000 Park Place uses the specific identification method. Total sales during UNITS SOLD UNITS IN ENDING INVENTORY Sales Cost of goods sold Gross profit Doyle's Art buys and sells paintings from emerging artists. The values of the works are prone to fluctuate considerably based on the ever changing stature of a particular artist. Following is a listing of 6 Estimat paintings, along with their Estimat costs, estimated selling prices, and ed Paintin edcommissions and shipping). expected selling costs Cost (inclusive of Selling g Selling Expens Price e Fire on $ 1,000 $ 1,400 $ 400 Hill Horses in Aspen Grove Baby's First Smile Endless War Rain Drop on Cactus Election Day Upset (a) (b) (c) (d) 2,500 800 100 3,000 6,000 500 2,000 2,200 300 1,500 2,500 400 2,300 1,600 200 What unit value should be attached to each painting, assuming application of the lower-of-cost-orAssuming item-by-item an item-by-item application of the lower-of-costor-net-realizable-value rule, what journal entry needed to As a general rule, is the item-by-item approachisrequired? Is theitem item-by-item approach thedown, most "conservative?" If an of inventory is written but subsequently recovers in value during a subsequent year, can it be (a) Fire Cost Vs. "NRV": Expected selling price Selling expense Net realizable value VALUE TO REPORT (b) (c) (d) Horse Baby War Rain Election B-08.08 I-05.01 Tic Toc Clock Shop reported the following merchandising-related transactions during June. Tic Tock Clock Shop records all purchases "gross," and credit terms are precisely followed on both purchases and sales. Prepare journal entries to record each transaction. 3-Jun Purchased $4,000 of clocks on account from Swiss Time, F.O.B. destination, terms 1/10, n/30. 5-Jun Sold a $1,500 clock to Janci Holgren on account, terms 2/10, n/eom. The customer picked up the clock from the shop. 9-Jun Paid the amount due for the purchase of June 3. 11-Jun Purchased $8,000 of clocks on account from Melbourne Clockworks, F.O.B. shipping point, terms 2/10, n/30. Freight charges of $460 were prepaid by Melbourne and added to the invoice. No discount is permitted on the freight charges. 19-Jun Sold a $3,500 clock on account, terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination, and paid the freight charges of $330. 23-Jun The customer of June 19 called to report that the clock was received damaged. An agreement was reached to reduce the invoice by 20%. 27-Jun Paid Melbourne Clockworks for the purchase of June 11. 27-Jun Janci Holgren paid for the purchase of June 5. 28-Jun The customer of June 19 paid the balance due. I-05.01 I-05.01 I-05.01 Name: Date: I-05.01 Section: GENERAL JOURNAL Date 3-Jun B05.01(a) Page Accounts Inventory Debit Credit 4,000 Accounts Payable 4,000 Purchased clocks on account, terms 1/10,n/30 5-Jun Accounts Receivable 1,500 Sales Revenue 1,500 Sold clock on account, terms 2/10, n/eom 9-Jun Accounts Payable 4,000 Cash 40 Discount Allowed 3,960 Paid for the puchase of June 3, taking the 1% discount 11-Jun Inventory 8,460 Accounts Payable 8,000 Cash 460 Purchased clocks on account, 2/10,n/30, F.O.B. shipping point 19-Jun Accounts Receivable 3,500 Cash 330 Sales Revenue 3,170 Sold clock on account, 2/10, n/eom, F.O.B. destination 23-Jun Sales Returns and allowance Accounts Payable Reduced balance due from customer on account of damage 700 700 Name: Date: I-05.01 Section: GENERAL JOURNAL Date 27-Jun Page Accounts Accounts Payable Debit Credit 8,000 Cah 8,000 Paid the full amount due for the purchase of June 11 27-Jun Cash 1,500 Accounts Recevable 1,500 Collected the amount due for the sale on June 5 28-Jun Cash Accounts Receivable Collected remaining amount for June 19 sale, less 2% discount 2,800 2,800 Name: Date: B05.01(a) Section: I-05.01 Name: Date: Section: I-05.01 Patti Devine owns Devine Decorating. One of her most popular items is the Remind-aChime digital clock. This programmable clock issues "voice-based" reminders of important events like birthdays, anniversaries, etc. Following is the Remind-a-Clock inventory activity for January. January 1 had a unit cost of $140. Date Purchases The clocks on hand at Sales 1-Jan 5-Jan 40 60 units @ $150 each 16-Jan 23-Jan 28-Jan Units on Hand 100 70 units @ $255 each 90 units @ $170 each 30 120 55 units @ $295 each 65 (a) If Devine uses the first-in, first-out (FIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (b) If Devine uses the last-in, first-out (LIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (c) If Devine uses the weighted-average inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? B-08.0 B-08.04 40 140 5600 60 150 9000 90 170 15300 190 460 29900 157.3684211 10228.947 65 (a) FIFO Beginning inventory B-08.0 $ Plus: Purchases Cost of goods available for sale 24,300 $ Less: Ending inventory Cost of goods sold $ 10,725 Sales $ 34,075 Gross profit 10,725 $ 23,350 $ 5,600 LIFO Beginning inventory Plus: Purchases Cost of goods available for sale 24,300 $ Less: Ending inventory 29,900 9,100 Cost of goods sold $ 20,800 Sales $ 34,075 Cost of goods sold Gross profit (c) 29,900 19,175 Cost of goods sold (b) 5,600 10,725 $ 23,350 $ 5,600 Weighted-average Beginning inventory Plus: Purchases Cost of goods available for sale 24,300 $ Less: Ending inventory 29,900 10,229 Cost of goods sold $ 19,671 Sales $ 34,075 Cost of goods sold Gross profit 19,671 $ 14,404 B-08.04 The Quilting Pad is a retail store that sells materials for custom quilts. The store has a quilting room where quilters gather to sew and visit. The store's inventory consists of bolts of fabrics, spools of thread, and trays of various batting and backing material. Customers generally select what they need and pay for what they use. The retail price of goods is clearly marked on the bolts, spools, and trays. The Quilting Pad has virtually no problem with theft or shortages of inventory. It is virtually impossible to track inventory in any detailed fashion. The store simply marks up all goods by a constant percentage. The mark up formula has been consistently applied to all items in inventory for many years. The Quilting Pad uses the retail inventory technique. Following is information for 20X7: Beginning inventory at cost $ 46,800 Beginning inventory at retail Cost of purchases of inventory during the year 78,000 230,000 At the end of the year, the Quilting Pad's inventory was physically counted, and it was determined that $100,000 was the retail value of goods on hand. Calculate the cost to retail percentage by analyzing the beginning inventory data. Apply the retail method to estimate the sales and gross profit for 20X7. B-08.10 B-08.10 0.6 The cost to retail percentage is ___60%_______. B-08.1 The following analysis shows that sales of____216,800______ were matched with cost of sales of ____361,333_________. This results in gross profit of _______144,533________. At Cost (___% of retail) Beginning inventory $ Purchases* Goods available for sale $ 230,000 $ Sales Ending inventory** 46,800 At Retail 276,800 383,333 $ 216,800 $ 60,000 78,000 461,333 361,333 $ 100,000 * Purchases at retail = 230,000/60% ** Ending inventory at cost = Goods available for sale -cost of sales at cost B-08.10 Dine-Corp International publishes ratings and reviews of the world's finest restaurants. Following are facts you need to prepare Dine-Corp's March bank reconciliation: Balance per company records at end of month Bank service charge for the month NSF check returned with bank statement Note collected by the bank during the month Outstanding checks at month end Interest on note collected during the month Balance per bank at end of month Deposit in transit at month end $ 72,644.12 44.00 1,440.66 45,000.00 31,553.57 4,500.00 144,223.99 7,989.04 B-06.03 B-06.03 B-06.03 Ending balance per bank statement $ Add: Deposit in transit at month end 144,223.99 7,989.04 Deduct: Outstanding checks at month end 31,553.57 Correct cash balance $ 120,659.46 Ending balance per company records $ 72,644.12 Add: Interest on note collected during the month Note collected by the bank during the month Deduct: NSF check returned with bank statement Bank service charge for the month Correct cash balance $ 4,500.00 45,000.00 49,500.00 1,440.66 44.00 (1,484.66) $ 120,659.46 B-06.03 Park Place Luxury Autos uses the specific identification method to Date of automobiles that were either value its inventory. Below is a listing Automobile Acquired in beginning inventory or acquired during the year: Cost Bentley Beginning inventory ### Rolls Royce Beginning inventory ### Cadillac January 40,000 Lexus March 50,000 Land Rover June 60,000 Jaguar July 42,000 Porsche September 75,000 Mercedes November 85,000 BMW December 64,000 Infiniti December 39,000 Park Place uses the specific identification method. Total sales during UNITS SOLD UNITS IN ENDING INVENTORY Sales Cost of goods sold Gross profit Doyle's Art buys and sells paintings from emerging artists. The values of the works are prone to fluctuate considerably based on the ever changing stature of a particular artist. Following is a listing of 6 Estimat paintings, along with their Estimat costs, estimated selling prices, and ed Paintin edcommissions and shipping). expected selling costs Cost (inclusive of Selling g Selling Expens Price e Fire on $ 1,000 $ 1,400 $ 400 Hill Horses in Aspen Grove Baby's First Smile Endless War Rain Drop on Cactus Election Day Upset (a) (b) (c) (d) 2,500 800 100 3,000 6,000 500 2,000 2,200 300 1,500 2,500 400 2,300 1,600 200 What unit value should be attached to each painting, assuming application of the lower-of-cost-orAssuming item-by-item an item-by-item application of the lower-of-costor-net-realizable-value rule, what journal entry needed to As a general rule, is the item-by-item approachisrequired? Is theitem item-by-item approach thedown, most "conservative?" If an of inventory is written but subsequently recovers in value during a subsequent year, can it be (a) Fire Cost Vs. "NRV": Expected selling price Selling expense Net realizable value VALUE TO REPORT (b) (c) (d) Horse Baby War Rain Election B-08.08