Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please present the solution from computer and not in hand. Account for Inventory Best Guy purchases inventory in crates of merchandise; each crate of inventory
please present the solution from computer and not in hand. Account for Inventory Best Guy purchases inventory in crates of merchandise; each crate of inventory is a unit. The fiscal year of Best Guy ends each February 28. Assume you are dealing with a single Best Guy store in Paris, France. The Paris store began 20X8 with an inventory of 18,000 units that cost a total of 990,000. During the year, the store purchased merchandise on account as follows: Apr. (33,000 units @ 60): Aug. (53,000 units @ 64): Nov. (63,000 units @ 70): 1,980,000; 3,392,000; 4,410,000. Cash payments on account totaled 9,492,000. During fiscal 20X8, the store sold 158,000 units of merchandise for 15,484,000, of which 5,400,000 was for cash and the balance was on account. Best Guy uses the average cost method for inventories. Operating expenses for the year were 2,860,000. Best Guy paid 70% in cash and accrued the rest as accrued liabilities. The store accrued income tax at the rate of 35%. 1. Make summary journal entries to record the store's transactions for the year ended February 28, 20X9. Best Guy uses a perpetual inventory system. 2. Prepare a T-account to show the activity in the Inventory Account. 3. Prepare the store's Income Statement for the year ended February 28, 20X9. Show totals for gross profit, income before tax, and net income
please present the solution from computer and not in hand.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started