Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase Units Acquired at Cost 200 units @ $90 per unit 500 units @ $95 per unit Units Sold at Retail March 9 Sales 520 units @ $125 per unit March 18 Purchase March 25 Purchase March 29 Sales Totals 320 units @ $100 per unit 400 units @ $102 per unit 1,420 units 360 units @ $135 per unit 880 units For specific identification, units sold include 70 units from beginning inventory, 450 units from the March 5 purchase, 140 units from the March 18 purchase, and 220 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 480,000 Credit sales $ 1,200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 648,000 debit $ 6,500 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity Required 1 Required 2A On what date does this note mature? On what date does this note mature? Required 2B General Journal < Required 1 Required 2A > Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Required 2B Required 1 Required 2A Interest at General Maturity Journal Prepare the entry to record issuance of the note. View transaction list Journal entry worksheet < 1 Record the issuance of the note. Note: Enter debits before credits. > Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase Units Acquired at Cost 200 units @ $90 per unit 500 units @ $95 per unit Units Sold at Retail March 9 Sales 520 units @ $125 per unit March 18 Purchase March 25 Purchase March 29 Sales Totals 320 units @ $100 per unit 400 units @ $102 per unit 1,420 units 360 units @ $135 per unit 880 units For specific identification, units sold include 70 units from beginning inventory, 450 units from the March 5 purchase, 140 units from the March 18 purchase, and 220 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 480,000 Credit sales $ 1,200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 648,000 debit $ 6,500 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Interest at Maturity Required 1 Required 2A On what date does this note mature? On what date does this note mature? Required 2B General Journal < Required 1 Required 2A > Sylvestor Systems borrows $83,000 cash on May 15 by signing a 90-day, 6%, $83,000 note. 1. On what date does this note mature? 2-a. Prepare the entry to record issuance of the note. 2-b. First, complete the table below to calculate the interest expense at maturity. Use those calculated values to prepare your entry to record payment of the note at maturity. Complete this question by entering your answers in the tabs below. Required 2B Required 2B Required 1 Required 2A Interest at General Maturity Journal Prepare the entry to record issuance of the note. View transaction list Journal entry worksheet < 1 Record the issuance of the note. Note: Enter debits before credits. >
Expert Answer:
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these finance questions
-
For years Samsung has had a proper market equilibrium with its smartphone's prices. However, the introduction of the Samsung Galaxy S10 plus allowed Samsung to produce a more expensive version of...
-
Find the absolute maximum and minimum of the function f(x, y) = r* + y* subject to the constraint a + y* = 4096. As usual, ignore unneeded answer blanks, and list points in lexicographic order....
-
Solve the given equation over the real numbers by completing the square. If there are more than one solution, separate them by a comma. If there is no real solution, enter DNE (short for does not...
-
Suppose that the proportion X of defective items in a large lot is unknown and that X has the beta distribution with parameters and . a. If one item is selected at random from the lot, what is the...
-
Hector P. Wastrel, a careless employee, left some combustible materials near an open flame in Salter Companys plant. The resulting explosion and fire destroyed the entire plant and administrative...
-
Natural gas is found in rock formations underground. In order to extract the gas, a procedure known as hydraulic fracturing, or fracking, is often used. In this procedure, fluid mixed with sand is...
-
In December 2014, Infodeo established its predetermined overhead rate for movies produced during 2015 by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs,...
-
Consider the internal controls listed below. For each one, explain: ( i ) the risk it addresses, ( ii ) the risk category from Brown s taxonomy, ( iii ) the broad purpose of internal control it...
-
Trade Construction Company is finishing out a small strip mall under subcontract to Beaumont Buildings. The contract requires Trade to indemnify Beaumont for liability resulting from Trade's...
-
How did the Puritans establish and govern their colony in New England? How did they seek to transplant Puritan congregationalism from England, and why can it be said that New England became the first...
-
A B Water (density = 1000 kg/m^3) flows in a horizontal circular pipe from a region of larger cross section A = 7.8x10^-3 m^2 to smaller cross section B = 2.3x10^-3 m^2 as shown. If the speed of the...
-
Solve the formula 9p + 4q = 16 for q.
-
Crane Ltd., a public company following IFRS, recorded a right-of-use asset and lease liability at $139,650 on May 1, 2023. The interest rate is 15%. Crane made the first lease payment of $29,188 on...
-
A wave is propagating in an aluminum block surrounded by water (you can consider Material 1 as Aluminum and Material 2 as Water). The pressure amplitude of the incident wave is 10 N/m. (Aluminum)...
-
A random sample of 100 people was taken. Eighty of the people in the sample favored Candidate A. We are interested in determining whether or not the proportion of the population in favor of Candidate...
Study smarter with the SolutionInn App