Assignment #3-DANIELA PACHECO

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Salesian University *

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1000

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Accounting

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May 24, 2024

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24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 1/9 1. Student: DANIELA PACHECO Date: 03/24/24 Instructor: Rachel Sham Course: ACCT1000 - Financial Accounting Principles 1 (W24) Assignment: Assignment #3 Consider the following transactions for Drug Store: Baskerville February 2 buys worth of inventory on account with credit terms of FOB shipping point. Baskerville $23,100 1 15, n 30, February 4 pays a freight charge. Baskerville $120 February 9 returns of the merchandise due to damage during shipment. Baskerville $4,100 February 14 pays the amount due, less return and discount. Baskerville Required 1 Requirement 1. Journalize the purchase transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Record debits first, then credits. Exclude explanations from journal entries.) : buys worth of inventory on account with credit terms of FOB shipping point. Feb. 2 Baskerville $23,100 1 15, n 30, Prepare the entry to journalize the purchase. Date Accounts Debit Credit February 2 Inventory 23,100 Accounts Payable 23,100 : pays a freight charge. Feb. 4 Baskerville $120 Date Accounts Debit Credit February 4 Inventory 120 Cash 120 : returns of the merchandise due to damage during shipment. Feb. 9 Baskerville $4,100 Prepare the entry to record the purchase return, and decrease the payable. Date Accounts Debit Credit February 9 Accounts Payable 4,100 Inventory 4,100 : pays the amount due, less return and discount. Feb. 14 Baskerville Date Accounts Debit Credit February 14 Accounts Payable 19,000 Cash 18,810 Inventory 190 Requirement 2. In the final analysis, how much did the inventory cost Drug Store? Baskerville What was the inventory cost for ? Baskerville 18,930 $

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 2/9 1: Required 1. Journalize the purchase transactions. Explanations are not required. 2. In the final analysis, how much did the inventory cost Drug Store? Baskerville

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 3/9 2. Journalize the following sales transactions for Sportswear. Explanations are not required. Swego July 1 sold of men's sportswear for cash. Cost of goods sold is . Swego $22,000 $11,000 July 3 sold of women's sportswear on account, credit terms are / , n/ . Cost of goods sold is . Swego $46,000 3 20 45 $23,000 July 5 received a sales return on damaged goods from the customer on July 1. Cost of goods damaged is . Money was refunded for the damaged goods, but the customer did not return the damaged goods to . Swego $4,700 $2,350 Swego July 10 received payment from the customer on the amount due, less discount. Swego July 1: sold of men's sportswear for cash. Cost of goods sold is . Swego $22,000 $11,000 Journalize 's sale. First, we will create the entry for the cash sale. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Swego Date Accounts Debit Credit July 1 Cash 22,000 Sales Revenue 22,000 Next, we will create the entry for the cost of goods sold. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Date Accounts Debit Credit July 1 Cost of Goods Sold 11,000 Inventory 11,000 July 3: sold of women's sportswear on account, credit terms are / , n/ . Cost of goods sold is . Swego $46,000 3 20 45 $23,000 Journalize 's sale on account. First, we will create the sale. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Swego Date Accounts Debit Credit July 3 Accounts Receivable 46,000 Sales Revenue 46,000 Next, create the entry for cost of goods sold. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Date Accounts Debit Credit July 3 Cost of Goods Sold 23,000 Inventory 23,000 July 5: received a sales return on damaged goods from the customer on July 1. Cost of goods damaged is . Money was refunded for the damaged goods, but the customer did not return the damaged goods to . Swego $4,700 $2,350 Swego Journalize 's return. First, record the refund. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Swego

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24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 4/9 Date Accounts Debit Credit July 5 Sales Returns and Allowances 4,700 Cash 4,700 Next, record the journal entry for the cost of goods returned. (Record debits first, then credits. Exclude explanations from journal entrie If no entry is required select "No entry required" on the first line of the journal entry table.) Date Accounts Debit Credit July 5 No entry required July 10: received payment from the customer on the amount due, less discount. Swego Journalize 's cash receipt from the customer. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required select "No entry required" on the first line of the journal entry table.) Swego Date Accounts Debit Credit July 10 Cash 44,620 Sales Discounts 1,380 Accounts Receivable 46,000

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 5/9 3. 2: Account balances Book Shop uses a perpetual inventory system. Book Shop's accounts at , included the following unadjusted balances: Gregorian Gregorian June 30, 2023 (Click the icon to view the unadjusted account balances.) 2 The cost calculated from the physical count of inventory on hand on , was . June 30, 2023 $16,700 a. Journalize the adjustment for inventory shrinkage. b. Compute the gross margin. c. Compute the gross margin percentage. If the industry standard is 45 percent, how is it doing? a. Journalize the adjustment for inventory shrinkage. (Record debits first, then credits. Explanations will appear on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit June 30 Cost of Goods Sold 300 Inventory 300 Adjustment for inventory shrinkage. b. Compute the gross margin. First select the formula, and then enter the applicable amounts and calculate the gross margin. Net Sales Revenue – Cost of Goods Sold = Gross margin 83,500 $ – 39,900 $ = 43,600 $ c. Compute the gross margin percentage. If the industry standard is 45 percent, how are they doing? First select the formula, and then enter the applicable amounts and calculate the gross margin percentage. (Enter the final answer as a percentage rounded to one decimal place, X.X%.) Gross Margin ÷ Net Sales Revenue × 100% = Gross Margin Percentage 43,600 $ ÷ 83,500 $ × 100% = 52.2 % If the industry standard is 45 percent, how is it doing? is because the gross margin percentage is the industry standard. Gregorian competitive greater than Inventory 17,000 $ Cost of Goods Sold 39,600 Sales Revenue 88,000 Sales Discounts 1,500 Sales Returns and Allowances 3,000

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 6/9 4. 3: Adjusted trial balance The adjusted trial balance of Party Supplies for the year ended December 31, , appears below. Pippa's 2023 (Click the icon to view the adjusted trial balance.) 3 Use this information to prepare the company's multi-step income statement for the year ended December 31, . 2023 Complete the income statement below. (Use a minus sign or parentheses to show other expenses and for a net loss.) Pippa's Party Supplies Income Statement For the Year Ended December 31, 2023 Sales revenue 248,000 $ Less: Sales discounts 28,000 $ Sales returns and allowances 9,600 37,600 Net sales revenue 210,400 Cost of goods sold 83,000 Gross margin 127,400 Operating expenses 116,000 Operating income 11,400 Other revenue and (expense) Interest revenue 3,600 Interest expense (4,900) (1,300) Net income (loss) 10,100 $ Pippa's Party Supplies Adjusted Trial Balance December 31, 2023

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24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 7/9 Account Debit Credit Cash 7,000 $ Accounts receivable 27,000 Inventory 41,000 Furniture 40,000 Accumulated amortization—furniture 39,000 $ Accounts payable 4,200 Interest payable 740 Unearned sales revenue 3,000 Note payable, long-term 49,000 Pippa Gunwold, capital 66,960 Pippa Gunwold, withdrawals 58,000 Sales revenue 248,000 Interest revenue 3,600 Sales discounts 28,000 Sales returns and allowances 9,600 Cost of goods sold 83,000 Operating expenses 116,000 Interest expense 4,900 Total 414,500 $ 414,500 $

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 8/9 5. 6. 7. 4: Accounts The periodic inventory records of include these accounts at December 31, : Parkplace Videos 2023 (Click the icon to review the data.) 4 Required: Compute 's cost of goods sold for . Parkplace 2023 We need to use a formula to determine cost of goods sold. First complete the formula up to net purchases, and then complete the remainder. Cost of goods sold: Beginning inventory 31,000 $ Purchases 174,000 $ Less: Purchase returns (9,400) Less: Purchase discounts (7,800) Net purchases 156,800 Freight-in 9,100 Cost of goods available 196,900 Less: Ending inventory (36,000) Cost of goods sold 160,900 $ Purchases 174,000 $ Purchase Discounts 7,800 Purchase Returns and Allowances 9,400 Freight-in 9,100 Inventory, December 31, 2022 31,000 Inventory, December 31, 2023 36,000 A good accounting information system includes all of the following features except : A. a favourable cost/benefit relationship. B. inflexibility. C. compatibility. D. control. Hardware is the electronic equipment that includes: A. disk drives, software, and servers. B. computers, monitors, printers and the network. C. servers, databases, and software. D. servers and software only.

24/3/24, 17:12 Assignment #3-DANIELA PACHECO https://tdx.acs.pearsonprd.tech/api/v1/print/highered 9/9 8. 9. 10. The following characteristics are related to either periodic inventory or perpetual inventory systems. Identify each characteristic as one of the following: a. Periodic inventory system b. Perpetual inventory system c. Both periodic and perpetual inventory systems d. Neither periodic nor perpetual inventory systems A. Purchases of inventory are journalized to an asset account at the time of purchase. b. B. Purchases of inventory are journalized to an expense account at the time of purchase. a. C. Inventory records are constantly updated. b. D. Sales made require a second entry to be journalized to record cost of goods sold. b. E. Bar code scanners that record sales transactions are most often associated with this inventory system. b. F. A physical count of goods on hand at year end is performed. c. In a manual system, processing includes journalizing transactions, posting the accounts, and preparing the financial statements. True False The three stages of data processing are: A. inputs, decision making, and outputs. B. source documents, processing, and decision making. C. processing, reports, and decision making. D. inputs, outputs, and processing.

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