Cash Beginning inventory Common stock Retained earnings $ 17,300 17,835 (205 @ $87) 14,500 20,635 The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units @ $89 2. Second purchase (cash): 200 units @ $97 3. Sales (all cash): 355 units @ $198 4. Paid $16,900 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method. b-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) b-2. Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint. Record the events under an accounting equation before preparing the statements.) b-3. Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below.

Cash Beginning inventory Common stock Retained earnings $ 17,300 17,835 (205 @ $87) 14,500 20,635 The following five transactions occurred in Year 3: 1. First purchase (cash): 120 units @ $89 2. Second purchase (cash): 200 units @ $97 3. Sales (all cash): 355 units @ $198 4. Paid $16,900 cash for salaries expense 5. Paid cash for income tax at the rate of 25 percent of income before taxes Required a. Compute the cost of goods sold and ending inventory, assuming (1) FIFO cost flow. (2) LIFO cost flow, and (3) weighted-average cost flow. Compute the income tax expense for each method. b-1. Use a vertical model to show the Year 3 income statement under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) b-2. Use a vertical model to show the Year 3 balance sheet under FIFO, LIFO, and weighted average. (Hint. Record the events under an accounting equation before preparing the statements.) b-3. Use a vertical model to show the Year 3 statement of cash flows under FIFO, LIFO, and weighted average. (Hint: Record the events under an accounting equation before preparing the statements.) Complete this question by entering your answers in the tabs below.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter4: Accounting For Retail Operations

Section: Chapter Questions

Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...

See similar textbooks

Similar questions

QUESTION 6 Use the following information to calculate Bead It, Inc.'s Cost of Goods Sold for the year. Note: All purchases of inventory are on account. January 1 Inventory $8,000 December 31 Inventory 15,000 Sales during the year 68,000 December 31 Accounts Payable 18,000 Purchases of Inventory on Account during the year 36,000 Cost of Goods Sold for the year = $_ 1
vi.3
Chapter 5 Quiz Using the following information for a periodic inventory system, what is the amount of net income? Purchases $32,000 Selling expense $960 2. Inventory, September 1 5,700 Inventory, September 30 6,370 3. Administrative expense 910 Sales 63,000 Rent revenue 1,200 Interest expense 1,040 4. Oa. $28,310 5. Ob. $29,510 Oc. $29,350 6. Od. $29,960 7. 8. 9. 10. 11. 12. 13. V
Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Gross profit During the current year, merchandise is sold for 18,300 cash and 295,700 on account. The cost of the goods sold is 188,000. What is the amount of the gross profit?
Accounts receivable and inventory turnover The following data (in millions) were adapted from recent financial statements of Apple Inc (AAPL) Compute the inventory turnover for Years 1 and 2. Round to one decimal place.
question 5 A record of transactions for the month of January was as follows: Purchases Sales Jan 1 (balance) 500 @ $5.00 Jan 3 200 @ $7.00 10 1,300 @ $5.60 18 1,000 @ 8.50 25 800 @ $6.00 Assuming that perpetual inventory records are kept in dollars, determine the ending inventory and cost of goods sold for FIFO, LIFO and moving average.
Question Description The company provides the following information: December 31 January 1 Accounts Payable $68,600 $72,300 Inventory 47,800 43,100 Accounts Receivable 95,000 99,700 a). All purchases of inventory were on account .b). Sales for the year were 972,000 c). The cost of goods sold for the year was 402,000 Compute how much cash was collected from customers during the year.
Q5
What is the accounts receivable turnover? What is the inventory turnover?
Consider the following financial statement information for the Hop Corporation: Item Inventory Accounts Receivable Accounts Payable Net Sale COGS O 13.44 days O 20.83 days What is the payable period for Hop Corporation? O 27.16 days Beginning $16,200 14,000 11,000 O 17.52 days $219,000 168,000 Ending $19,100 16,000 14,000
Accounting