The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $75,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66543eb68f599_11066543eb632a57.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66543eb738714_11066543eb6c4482.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66543eb7d21c0_11166543eb76fb38.jpg)
Transcribed Image Text:
The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $75,000 cash from the issue of common stock. 2. Purchased $73,500 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,790 paid in cash. 4. Sold inventory on account that cost $39,000 for $73,000. 5. Freight cost on the goods sold in Event 4 was $1,030. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $4,700 worth of goods that had a cost of $2,400. 7. Collected $59,860 cash from accounts receivable. 8. Paid $60,200 cash on accounts payable. 9. Paid $3,560 cash for advertising expense. 0. Paid $3,860 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example. The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $75,000 cash from the issue of common stock. 2. Purchased $73,500 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $1,790 paid in cash. 4. Sold inventory on account that cost $39,000 for $73,000. 5. Freight cost on the goods sold in Event 4 was $1,030. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $4,700 worth of goods that had a cost of $2,400. 7. Collected $59,860 cash from accounts receivable. 8. Paid $60,200 cash on accounts payable. 9. Paid $3,560 cash for advertising expense. 0. Paid $3,860 cash for insurance expense. Required a. Which of these events affect period (selling and administrative) costs? Which result in product costs? b. Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Lorie Reilly decides to go back to college. For transportation, she borrows money from her parents to buy a small car for $7,200. She plans to repay the loan in 7 months. What amount can she deposit...
-
Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...
-
Critical Thinking Journalists, government officials, and consumers have been highly critical of companies for gathering and storing large amounts of data on consumers (i.e., Big Data). Others argue...
-
Outdoors Inn (see Problem 7-41) expanded its tent-making operations later in the year. While still making the Double Inn tent, it is also making a larger tent, the Family Rolls, which has four rooms....
-
Extra Credit Project Report BUSI 2342 Name: Student ID: Part I: The following analysis output as described in the handout. . Exhibit 1 (10 points): Screenshot of your "Descriptive Statistics"...
-
Facebook, Inc. is considering a major restructuring of its organizational hierarchy. As a financial consultant, outline the potential accounting and financial reporting implications of this...
-
A company receives $364, of which $23 is for sales tax. The journal entry to record the sale would include a ?
-
A project requires a $802,000 Initial Investment for equipment. The equipment is estimated to have an eight-year life and a salvage value of $42,000. The project is expected to generate income of...
-
A product has the following costs: $ Per Unit Variable production costs 9.60 Total production costs 15.00 Total variable cost 11.80 Total cost 20.00 22,800 units of the product were manufactured in a...
-
Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 20 million payable in one year. One-year interest rates are 2% in the United States and 4% in the euro zone. The spot...
-
6. [0/1 Points] DETAILS MY NOTES Find the derivative. f'(x) = f(x) = x9.3x symbolic formatting help
-
Joe's Bar (not its real name) uses 800 kegs of adult beverages per year on a continuous basis (assume 365 days of operations per year).The order cost is $50.00 per order and the carrying cost is...
-
Target costing profitability measure What is the most widely used profitability measure to develop the target profit margin under target costing? LO 3
-
Kaizen costing: knowledge According to the Kaizen costing approach, who has the best knowledge to reduce costs? Why is this so? LO 3
-
Costs committed versus costs incurred Review Exhibit 9-2 showing the rela- LO 3 tionship between committed costs and incurred costs over the total life cycle of a product. Explain what the diagram...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App