questions 1 and 2

Because Natalie has had such a successful first few months. she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive U.S. distributor of these fine mixers in her state. The current cost of a mixer is approximately $525 (U.S.), and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January Jan. 4 6 7 8 12 14 Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms n/30. Paid $100 freight on the January 4 purchase. Returned one of the mixers to Kzin ki because it was damaged during shipping Kzinski issues Continuing Cookie Chronicle credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. Collected $375 the accounts receivable from December 2015. Three deluxe mixers are sold on account for $3,450, FOB destination terms w/30 (Cost of goods sold is $595 per mixer.) Paid the 575 of delivery charges for the three mixers that were sold on January 12. Bought four deluxe mixers on account from Kzinski Supply Co. for $2,300, FOB shipping point, terms 1/30. Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1.000 cash in Continuing Cookie Chronicle. Paid $BO freight on the January 14 purchase. Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.) Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2016. (Natalie's assistant carns $8 an hour.) 14 17 18 20 28 Collected the amounted from mare for the 20 28 28 Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.) Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $owed at December 31, 2016. (Natalie's assistant earns $8 an hour.) Collected the amounts due from custom for the January 12 transaction. Paid a $145 utility bill ($75 for the Deceber 2016 accounts payable and $70 for the month of January). Paid Kzinski all amounts due. Natalie withdrew $750 for personalu 30 31 31 As of January 31, the following adjusting ent y data is available. 1. 2. 3. 4 A count of baking supplies reveals that none were used in January Another month's worth of depreciation needs to be recorded on the $1.200 of baking equipment bought in November (Recall that the baking equipment has a useful life of 5 years or 60 months and no salvage value.) An additional month's worth of inbrest on her grandmother's $2,000 loan needs to be accrued (The interest rate is 6%.) During the month $110 of insurance has expired. An analysis of the unearned service revenue account reveals that Natalie has not had time to teach any of these lessons this month because she has been so busy selling mixers. As a result, there is no change to the unearned service revenue account. Natalie hopes to complete the remaining lessons in February An inventory count of mixers at the end of January reveals that Natalie has three mixers remaining 5. 6. Natalie asks you the following questions "Would you consider these mixers to be inventory Or should they be classified as supplies or equipment?" : E 3 99 11 1 O Words) e Textbook and Media I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" . a E 3 99 TT: Because Natalie has had such a successful first few months. she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Kzinski Supply Co. has approached Natalie to become the exclusive U.S. distributor of these fine mixers in her state. The current cost of a mixer is approximately $525 (U.S.), and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified. In the end, Natalie decides to use the perpetual inventory system. The following transactions happen during the month of January Jan. 4 6 7 8 12 14 Bought five deluxe mixers on account from Kzinski Supply Co. for $2,875, FOB shipping point, terms n/30. Paid $100 freight on the January 4 purchase. Returned one of the mixers to Kzin ki because it was damaged during shipping Kzinski issues Continuing Cookie Chronicle credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. Collected $375 the accounts receivable from December 2015. Three deluxe mixers are sold on account for $3,450, FOB destination terms w/30 (Cost of goods sold is $595 per mixer.) Paid the 575 of delivery charges for the three mixers that were sold on January 12. Bought four deluxe mixers on account from Kzinski Supply Co. for $2,300, FOB shipping point, terms 1/30. Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1.000 cash in Continuing Cookie Chronicle. Paid $BO freight on the January 14 purchase. Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.) Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2016. (Natalie's assistant carns $8 an hour.) 14 17 18 20 28 Collected the amounted from mare for the 20 28 28 Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.) Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $owed at December 31, 2016. (Natalie's assistant earns $8 an hour.) Collected the amounts due from custom for the January 12 transaction. Paid a $145 utility bill ($75 for the Deceber 2016 accounts payable and $70 for the month of January). Paid Kzinski all amounts due. Natalie withdrew $750 for personalu 30 31 31 As of January 31, the following adjusting ent y data is available. 1. 2. 3. 4 A count of baking supplies reveals that none were used in January Another month's worth of depreciation needs to be recorded on the $1.200 of baking equipment bought in November (Recall that the baking equipment has a useful life of 5 years or 60 months and no salvage value.) An additional month's worth of inbrest on her grandmother's $2,000 loan needs to be accrued (The interest rate is 6%.) During the month $110 of insurance has expired. An analysis of the unearned service revenue account reveals that Natalie has not had time to teach any of these lessons this month because she has been so busy selling mixers. As a result, there is no change to the unearned service revenue account. Natalie hopes to complete the remaining lessons in February An inventory count of mixers at the end of January reveals that Natalie has three mixers remaining 5. 6. Natalie asks you the following questions "Would you consider these mixers to be inventory Or should they be classified as supplies or equipment?" : E 3 99 11 1 O Words) e Textbook and Media I've learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?" . a E 3 99 TT