Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The cost of morchandise sold was $465,000. The company collected cash of $13,398 from its customers for sales previoushy recorded as accounts rocevivide. Cash of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The cost of morchandise sold was $465,000. The company collected cash of $13,398 from its customers for sales previoushy recorded as accounts rocevivide. Cash of \$514,114 was used to pay supplers for goods, supplies, and property and equipenent previously purchased on account. The company collected $23,785 from the Limited in satistaction of amounts owed by the Limited to A\&F, Cash of $50,000 was usod to repay principal on long-term debt. Property and equipment were acquired on acoount (accounts payable) for $39,987. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debit in the owners' equity section of the balance sheet. The following represents a singlo composite joumal entry for all remaining transactions during the year. Record the entry in the approprlate accounts: Oher Current hoses General, Admin, and Store Operatire Expense Deferred income Tases D. Dr. Dr. Provision for Income Taves (Expense) D. Dr. Cether assots cr Cash ce. c. c. Income Taxes Payable Other Long-Term Labilikes Interest hoome Accrued Expenses Common Stock Paid-in Capital TOTAL Explanation: to fecord all other activity for fiscal 1999 b. Prepare an unadjusted trial balance as at January 30,1999 using the ending balances in the T-accounts obtained in part a. Abercrombie \& Fitch Co. Transactions and Financial Statements Copyright 200I by Prensice Hall, Inc. Al rights reserved. No part of this publication may be reproduced in any form for any purpase wichout the wriaten permission of rhe pabilisher. c. Prepare 1999 adjusting journal entries for the following items and post them to the T-accounts prepared in part a. 12a. Abercrombie \& Fitch employees counted the company's merchandise inventory on January 30, 1999. The cost of invontory in stock on that day was $43,992. 12b. Abercrombie \& Fitch employees counted the companys store supplies on January 30 , 1999 . The cost of store supplies on that day was $5,887 (store supplies used are included in store operating expenses). 12c. Assume that all of the activity in the "Other current assets" account is related to the company's insurance policies. The unadjusted amount in "Other current assets" (Hint: \$1,696) represents the beginning balance for prepaid insurance premiums plus all cash payments for insurance during the year. At January 30 , 1999 , the amount of insurance that had not expired was $691. 12d. The company recorded $20,946 of depreciation part of general, administrative, and store operating expenses-on the property and equipment. 12e. Abercrombie and Fitch employees' last payday was January 21 st. At year-end there were 10 days of wages that had not been recorded. This amounted to $3,685 including all related payroll taxes. d. Prepare an adjusted trial balance as at January 30,1999 using the ending balances in the T-accounts obtained after recording the adjustments listed in part c. e. Prepare the fiscal 1999 income statement. f. Close the temporary T-accounts and provide the fiscal 1999 closing entry. g. Prepare the January 30,1999 balance sheet. h. Calculate the year-over-year percentage change in Net Sales for fiscal 1998 and 1999. Comment on this trend. Abercrombie \& Fitch Co.-Transactions and Financial Statements Abercrombie \& Finch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of mer's, women's and kid's' casual appant. The Compamy's retall activities are conducted under the Abercrombie \& Fich and "Abererombie" trade names through retail stores and a magazine/catalogue bearing the Company name. Merchandise is tangeted to appeal to customers in specially markets who have distinctive consumer characteristics. Leaming Objectives Record basic transactions, adjusting journal entries, and closing entries. Prepare a balance sheet and income statement. Refer to the fiscal year 1999 financial statements of Abercrombie \& Fitch Co. Note: "Fiscal year 1999" refers to the year that began on February 1, 1998 and ended on January 30, 1999. a. Open T-accounts for each balance sheet and income statement line item (i.c., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts; for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 2 3. 4. 5. a. 7. 8. 9. 10. 11. Inventory costing $481,918 was purchased on account during the year. Store Supplies costing $1,000 were purchased on account during the year. Sales of $815,804 were made. Of these, $15,804 were on account. The accoupanying Notes are an Integral part of these Consolidated Financial stateaents. Abercrombie \& Fitch Co. - Transactions and Financial Statements Abereramble of Fitch Ca, a Delanvare corporation is principolly engaged in the purchase, distributiont and sale of men't, wamen's and hids' castal apparel. The Conpany't retall activitier are conducted inder the Aberenombie \& Fiteh and "Abercrombie" traile names throught retail storer and a magaranelcatalogue bearing the Company name. Merchtwidise is targeted to appeal to customers in speclally morkets who have distinctive consumer characteristlics. Leaming Objectives 1. Record basic trunsactions, adjusting joumal entries, abd closing entries: - Prepare a balance shect and income statement. Refer to the fiscal year 1999 financial statements of Abercrombie \& Fitch Co. Note: "Fiscal year 1999 " refers to the year that began on February 1, 1998 and ended on Junuary 30, 1999. a. Open T-accounts for each balance sbeet and incorne statement line item (i.e., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts; for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 belance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 1. Inventory costing $481,918 was purchased on account during the year. 2. Store Supplies costing $1,000 were purchased on nocount during the year. 3. Sales of $815,804 were made. Of these, $15,804 were on account. 4. The cost of merchandise sold was $465,000. 5. The company collected cash of $13,398 from is cuslomers for sales previously recorded as accounts recelvable. 6. Cash of $514,114 was used to pay supplers for goods, supplies, and property and equipment previousty purchased on account. 7. The company colected $23,785 from the Umited in satistaction of amounts owed by the Limiled to A\&F. 8. Cash of $50,000 was used to repay principal on long-term debt. 9. Property and equipment were acquired on account (accounts payable) for $39,987. 10. The company paid $908 for shares of is own common stock. This is known as treasury stock. It is recorded at cost as a debit in the cunners' equily section of the balance sheet. 11. The following represents a singlo composile journal entry for all remaining transactions during the yoar. The following represents a singlo cooncosilte jurt b. Prepare an unadjusted trial balance as at Janvary 30,1999 using the ending balances in the T-accounts obtained in part a. Abercromble & Filch 60 - fransactions and Financial Statements the verimen perminnien of the publistirr. c. Prepare 1999 adjusting journal entries for the following items and post them to the T-accounts prepared in part a. 12a. Abercrombie \& Fitch employees counted the company's merchandise inventory on January 30,1999 . The cost of inventory in stock on that day was $43,992. 12b. Abercromble \& Fitch employees counted the company's store supplies on January 30, 1999. The cost of store supplies on that day was $5,887 (store supplies used are included in store operating expenses). 12c. Assume that all of the activity in the "Other current assets" account is related to the company's insurance policies. The unadjusted amount in "Other current assets" (Hint: $1,696 ) represents the beginning balance for prepaid insurance premiums plus all cash payments for insurance during the year. At January 30 , 1999 , the amount of insurance that had not expired was $891. 12d. The company recorded $20,946 of depreclation-part of general, administrative, and store operating expenses-on the property and equipment. 12e. Abercrombie and Fitch employees' last payday was January 21st. At year-end there were 10 days of wages that had not been recorded. This amounted to $3,685 including all related payroll taxes. d. Prepare an adjusted trial balance as at January.30, 1999 using the ending balances in the T-accounts obtained after recording the adjustments listed in part c. e. Prepare the fiscal 1999 income statement. f. Close the temporary T-accounts and provide the fiscal 1999 closing entry. g. Prepare the January 30,1999 balance sheet. h. Calculate the year-over-year percentage change in Net Sales for fiscal 1998 and 1999. Comment on this trend. i. Comment on the level of inventory in 1999 compared to 1998 and 1997. (Inventory in 1997 was $34,943 and total assets were $105,761.) What conclusions do you draw from this trend? What additional information might an investor in Abercrombic \& Fitch seek in order to evaluate the company's future level of profitability? i. Comment on the level of inventory in 1999 compared to 1998 and 1997. (Inventory in 1997 was $34,943 and total assets were $105,761.) What conclusions do you draw from this trend? j. What additional information might an investor in Abercrombie \& Fitch seek in order to evaluate the company's future level of profitability? The accompanying Notes are an integral part of these Consolidated Financial statements. The cost of morchandise sold was $465,000. The company collected cash of $13,398 from its customers for sales previoushy recorded as accounts rocevivide. Cash of \$514,114 was used to pay supplers for goods, supplies, and property and equipenent previously purchased on account. The company collected $23,785 from the Limited in satistaction of amounts owed by the Limited to A\&F, Cash of $50,000 was usod to repay principal on long-term debt. Property and equipment were acquired on acoount (accounts payable) for $39,987. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debit in the owners' equity section of the balance sheet. The following represents a singlo composite joumal entry for all remaining transactions during the year. Record the entry in the approprlate accounts: Oher Current hoses General, Admin, and Store Operatire Expense Deferred income Tases D. Dr. Dr. Provision for Income Taves (Expense) D. Dr. Cether assots cr Cash ce. c. c. Income Taxes Payable Other Long-Term Labilikes Interest hoome Accrued Expenses Common Stock Paid-in Capital TOTAL Explanation: to fecord all other activity for fiscal 1999 b. Prepare an unadjusted trial balance as at January 30,1999 using the ending balances in the T-accounts obtained in part a. Abercrombie \& Fitch Co. Transactions and Financial Statements Copyright 200I by Prensice Hall, Inc. Al rights reserved. No part of this publication may be reproduced in any form for any purpase wichout the wriaten permission of rhe pabilisher. c. Prepare 1999 adjusting journal entries for the following items and post them to the T-accounts prepared in part a. 12a. Abercrombie \& Fitch employees counted the company's merchandise inventory on January 30, 1999. The cost of invontory in stock on that day was $43,992. 12b. Abercrombie \& Fitch employees counted the companys store supplies on January 30 , 1999 . The cost of store supplies on that day was $5,887 (store supplies used are included in store operating expenses). 12c. Assume that all of the activity in the "Other current assets" account is related to the company's insurance policies. The unadjusted amount in "Other current assets" (Hint: \$1,696) represents the beginning balance for prepaid insurance premiums plus all cash payments for insurance during the year. At January 30 , 1999 , the amount of insurance that had not expired was $691. 12d. The company recorded $20,946 of depreciation part of general, administrative, and store operating expenses-on the property and equipment. 12e. Abercrombie and Fitch employees' last payday was January 21 st. At year-end there were 10 days of wages that had not been recorded. This amounted to $3,685 including all related payroll taxes. d. Prepare an adjusted trial balance as at January 30,1999 using the ending balances in the T-accounts obtained after recording the adjustments listed in part c. e. Prepare the fiscal 1999 income statement. f. Close the temporary T-accounts and provide the fiscal 1999 closing entry. g. Prepare the January 30,1999 balance sheet. h. Calculate the year-over-year percentage change in Net Sales for fiscal 1998 and 1999. Comment on this trend. Abercrombie \& Fitch Co.-Transactions and Financial Statements Abercrombie \& Finch Co., a Delaware corporation, is principally engaged in the purchase, distribution and sale of mer's, women's and kid's' casual appant. The Compamy's retall activities are conducted under the Abercrombie \& Fich and "Abererombie" trade names through retail stores and a magazine/catalogue bearing the Company name. Merchandise is tangeted to appeal to customers in specially markets who have distinctive consumer characteristics. Leaming Objectives Record basic transactions, adjusting journal entries, and closing entries. Prepare a balance sheet and income statement. Refer to the fiscal year 1999 financial statements of Abercrombie \& Fitch Co. Note: "Fiscal year 1999" refers to the year that began on February 1, 1998 and ended on January 30, 1999. a. Open T-accounts for each balance sheet and income statement line item (i.c., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts; for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 2 3. 4. 5. a. 7. 8. 9. 10. 11. Inventory costing $481,918 was purchased on account during the year. Store Supplies costing $1,000 were purchased on account during the year. Sales of $815,804 were made. Of these, $15,804 were on account. The accoupanying Notes are an Integral part of these Consolidated Financial stateaents. Abercrombie \& Fitch Co. - Transactions and Financial Statements Abereramble of Fitch Ca, a Delanvare corporation is principolly engaged in the purchase, distributiont and sale of men't, wamen's and hids' castal apparel. The Conpany't retall activitier are conducted inder the Aberenombie \& Fiteh and "Abercrombie" traile names throught retail storer and a magaranelcatalogue bearing the Company name. Merchtwidise is targeted to appeal to customers in speclally morkets who have distinctive consumer characteristlics. Leaming Objectives 1. Record basic trunsactions, adjusting joumal entries, abd closing entries: - Prepare a balance shect and income statement. Refer to the fiscal year 1999 financial statements of Abercrombie \& Fitch Co. Note: "Fiscal year 1999 " refers to the year that began on February 1, 1998 and ended on Junuary 30, 1999. a. Open T-accounts for each balance sbeet and incorne statement line item (i.e., for the permanent accounts: 9 asset T-accounts and 9 liability and owners' equity T-accounts; for the temporary accounts: 5 T-accounts). Enter the January 31, 1998 belance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (figures in thousands of dollars): 1. Inventory costing $481,918 was purchased on account during the year. 2. Store Supplies costing $1,000 were purchased on nocount during the year. 3. Sales of $815,804 were made. Of these, $15,804 were on account. 4. The cost of merchandise sold was $465,000. 5. The company collected cash of $13,398 from is cuslomers for sales previously recorded as accounts recelvable. 6. Cash of $514,114 was used to pay supplers for goods, supplies, and property and equipment previousty purchased on account. 7. The company colected $23,785 from the Umited in satistaction of amounts owed by the Limiled to A\&F. 8. Cash of $50,000 was used to repay principal on long-term debt. 9. Property and equipment were acquired on account (accounts payable) for $39,987. 10. The company paid $908 for shares of is own common stock. This is known as treasury stock. It is recorded at cost as a debit in the cunners' equily section of the balance sheet. 11. The following represents a singlo composile journal entry for all remaining transactions during the yoar. The following represents a singlo cooncosilte jurt b. Prepare an unadjusted trial balance as at Janvary 30,1999 using the ending balances in the T-accounts obtained in part a. Abercromble & Filch 60 - fransactions and Financial Statements the verimen perminnien of the publistirr. c. Prepare 1999 adjusting journal entries for the following items and post them to the T-accounts prepared in part a. 12a. Abercrombie \& Fitch employees counted the company's merchandise inventory on January 30,1999 . The cost of inventory in stock on that day was $43,992. 12b. Abercromble \& Fitch employees counted the company's store supplies on January 30, 1999. The cost of store supplies on that day was $5,887 (store supplies used are included in store operating expenses). 12c. Assume that all of the activity in the "Other current assets" account is related to the company's insurance policies. The unadjusted amount in "Other current assets" (Hint: $1,696 ) represents the beginning balance for prepaid insurance premiums plus all cash payments for insurance during the year. At January 30 , 1999 , the amount of insurance that had not expired was $891. 12d. The company recorded $20,946 of depreclation-part of general, administrative, and store operating expenses-on the property and equipment. 12e. Abercrombie and Fitch employees' last payday was January 21st. At year-end there were 10 days of wages that had not been recorded. This amounted to $3,685 including all related payroll taxes. d. Prepare an adjusted trial balance as at January.30, 1999 using the ending balances in the T-accounts obtained after recording the adjustments listed in part c. e. Prepare the fiscal 1999 income statement. f. Close the temporary T-accounts and provide the fiscal 1999 closing entry. g. Prepare the January 30,1999 balance sheet. h. Calculate the year-over-year percentage change in Net Sales for fiscal 1998 and 1999. Comment on this trend. i. Comment on the level of inventory in 1999 compared to 1998 and 1997. (Inventory in 1997 was $34,943 and total assets were $105,761.) What conclusions do you draw from this trend? What additional information might an investor in Abercrombic \& Fitch seek in order to evaluate the company's future level of profitability? i. Comment on the level of inventory in 1999 compared to 1998 and 1997. (Inventory in 1997 was $34,943 and total assets were $105,761.) What conclusions do you draw from this trend? j. What additional information might an investor in Abercrombie \& Fitch seek in order to evaluate the company's future level of profitability? The accompanying Notes are an integral part of these Consolidated Financial statements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Fundamentals Essentials Concepts And Examples

Authors: Steven M. Bragg

7th Edition

1642210846, 978-1642210842

More Books

Students also viewed these Accounting questions

Question

Brief the importance of span of control and its concepts.

Answered: 1 week ago

Question

What is meant by decentralisation?

Answered: 1 week ago

Question

Write down the Limitation of Beer - Lamberts law?

Answered: 1 week ago

Question

Discuss the Hawthorne experiments in detail

Answered: 1 week ago

Question

Describe several models for organizing a human resources department

Answered: 1 week ago