problem 3-23

Accounting - VitalSource Bookshelf File Edit View Book Window Help Library Back Forward Make Highlight Make Note Search this book Q Contents Highlights Current Highlighter Zoom In Zoom Out Zoom to Fit Hand Tool Start Reading Stop Reading Hide Navigetion Page Layout 140 adicate whether the freight cost woald be classified as a product or period (selling and adminis tative) cost a Purchased innenloey with frighl cods of $h50. The goods wewe shipped FOB hipping poinl b. Sold merchandise to a customer. Frcight costs were $310. The goods were shipped FOB shipping e. Purchased menchtndise inventory with freight cods of $1,500. The merchondise was dipped FOB d Shipped mechandie oo cu tatari, freight lenn FOB destinatie. The freight costs were S520. Ac un tin LO 3-2 Problem 3-23 ffrct of purchase returus aad allowances aad purchase discoants on the financial statements: Perpetual syste De.. 1 Not.. 2 The following eveats were completed by Dana's Imports in September 2018 CHECK FIGURES a Ending Cash:551,098 ?? 6 ?? 8 Wh... 10 Punchased $28.000 of merchandise own account with terms 2/10. n/30, 1 5 Paid $600 cash for fneight to olain menchondise punchaud on Soplember I 8 Sold merchandise that cost $15,000 to customers for $31,000 on accoust, with terms 2/10, n30 8 Returned $600 of defective merchondise froem the Sepsember 1 purchase to the supplier 10 Paid cash for the belance due on the merchandise purchased on September 1 20 Received eash from cusiomes of Sepiember 8 sale in sellemenl of the accound halances, Ack... 16 An... 18 30 Paid S2450 cash for sel ing expenses. Ac... 108 Inte... 146 a Record each event in a stalements model like the following one. The firt event is recorded as an Acc... 222 Acc... 262 Pro... 308 Fin... 342 An... 380 Cos... 422 Cos... 4S6 Rel... 486 Pla... 522 Per... 554 Equity Rev. ExpNet IncCash Flow Cash + Accts. Rec + lnw. Accts. Pary. + Con + Ret. Earn. +0000 NA 0,000 FA b. Prepare an income statement for the month ending September 0 e. Prepare a statement of cash flows for the month ending Sepeember 30. d. Explain why there is a difference between net income and cash flow from operating activiies 28 Chapters 12:16 AM 3/27/2018