Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year ofoperation. Assume that Watson uses the perpetual inventory system.a. Acquired $30,000 cash from the issue of common stock.b. Purchased inventory for $18,000 cash.c. Sold inventory costing $15,000 for $32,000 cash.Required:a. Record the events in a horizontal financial statements model.b. Prepare an income statement for Year 1 (use the multistep format).c. What is the amount of total assets at the end of the period?Complete this question by entering your answers in the tabs below.Required ARequired BTotal assetsRequired CWhat is the amount of total assets at the end of the period?

The accounting equation states that assets are equal to the sum of the liabilities and equity. The…

Answered: Dan Watson started a small…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare the journal entries to record the William's Music transactions assuming the company uses the earnings approach to recognize revenue.
The accounting records of Wall's China Shop reflected the following balances as of January 1, Year 2. Cash $ 19,100 Beginning inventory 13,200 (150 units @ $88) Common stock 14,300 Retained earnings 18,000 The following five transactions occurred in Year 2: First purchase (cash): 115 units @ $90 Second purchase (cash): 200 units @ $98 Sales (all cash): 415 units @ $197 Paid $13,350 cash for salaries expenses Paid cash for income tax at the rate of 40 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. Record the above transactions in general journal form and post to T-accounts assuming each of the cost flows listed. Assume perpetual inventory system is used. 1. FIFO 2. LIFO 3. Weighted Average c. Use a vertical model to show the Year 2 income statement, balance sheet, and statement of cash flows under FIFO,…
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4 Recreational Equipment, Inc., commonly known as REI, is an American retail and outdoor recreation services corporation. REI uses a periodic inventory system. The following are some inventory transactions for the month of May for REI: 1. REI purchased inventory on account for $5,000. Freight charges of $300 were paid in cash. 2. REI returned some of the inventory purchased in transaction (1). The cost of the inventory was $600 and REI's account was credited by the supplier. 3. Inventory costing $2,800 was sold for $5,200 in cash. Required: Please prepare the necessary journal entries to record these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 Record the merchandise purchased on account for $5,000. Transaction 1a Note: Enter debits before credits. General Journal Debit Credit >
Rite Shoes was involved in the transactions described below. Purchased $9,500 of inventory on account. Paid weekly salaries, $1,050. Recorded sales for the first week: Cash: $8,400; On account: $6,600. Paid for inventory purchased in event (1). Placed an order for $7,500 of inventory. Required: Prepare the appropriate journal entry for each transaction. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
CAN SOMEONE SHOW ME HOW TO DO A " CASH JOURNAL"? Selected accounts from the chart of accounts of Crane Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Crane completed the following transactions. Jan. 3 Purchased merchandise on account from Gallagher Co. $10,500. 4 Purchased supplies for cash $80. 4 Sold merchandise on account to Wheeler $5,670, invoice no. 371, terms 1/10, n/30. 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,800. 8 Purchased merchandise on account from Phegley Co. $5,000. 9 Sold…
required: a) Prepare the Stock Ledger card using the WAC method under perpetual system. b) Calculate the total amount of purchases. c) Calculate the cost of goods sold. d) Calculate the gross profit or loss made if the selling price of the dress is $15 each. e) Calculate the amount of closing stock. please answer this question I need a help on this.
Based on the following transactions, answer the following questions. i. ii. iii. iv. V. vi. vii. Purchased inventory with a cost of $28,300 on account. Sales on account to customers totalled $54,700. Payments made to employees for wages totalled $19,600. Cash collections from customers settling their accounts totalled $49,500. Invoice received from the utility company for $6,100 is due in 30 days. Payments totalling $19,500 were made to suppliers to settle part of the balance owing to them. Received a deposit of $1,800 from a customer for goods to be delivered next month.
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The following transactions occurred during the month of November in the operation of Wonderful Buy, Inc, a retailer of electronic merchandise. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4 Purchased merchandise for $6,000 on account from International Fragrance Corporation, terms: 3/10, n/60. November 16 Sold merchandise to a customer on account for $8,000, terms 2/10, n/30. The merchandise had cost Wonderful Buy’s $4,000. November 18 Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy’s $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The…
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