Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $59,000 cash from the issue of common stock. 2. Paid $21,900 cash to purchase inventory. 3. Sold Inventory costing $11,500 for $28,300 cash. 1. Physically counted Inventory, had inventory of $7,100 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.

Exercise 4-11A (Algo) Effect of inventory losses: Perpetual system LO 4-5 Ho Designs experienced the following events during Year 1, its first year of operation: 1. Started the business when it acquired $59,000 cash from the issue of common stock. 2. Paid $21,900 cash to purchase inventory. 3. Sold Inventory costing $11,500 for $28,300 cash. 1. Physically counted Inventory, had inventory of $7,100 on hand at the end of the accounting period. Required a. Record the events in the T-accounts provided. b. Prepare an income statement and balance sheet.

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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Comprehensive Problem 2Part 1 and Part 2: Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows. Assume all accounts have normal balances. 110 Cash $83,600 312 Dividends $135,000 112 Accounts Receivable 233,900 410 Sales 5,069,000 115 Inventory 624,400 510 Cost of Goods Sold 2,823,000 116 Estimated Returns Inventory 28,000 520 Sales Salaries Expense 664,800 117 Prepaid Insurance 16,800 521 Advertising Expense 281,000 118 Store Supplies 11,400 522 Depreciation Expense — 123 Store Equipment 569,500 523 Store Supplies Expense — 124 Accumulated Depreciation—Store Equipment 56,700 529 Miscellaneous Selling Expense 12,600 210 Accounts Payable 96,600 530 Office Salaries Expense 382,100 211 Salaries Payable — 531 Rent Expense 83,700 212 Customers Refunds Payable…
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Required information Exercise 5-4A (Algo) Effect of inventory cost flow (FIFO, LIFO, and weighted average) on gross margin LO 5-1 [The following information applies to the questions displayed below.) The following information pertains to Mason Company for Year 2: Beginning inventory Units purchased) Ending Inventory consisted of 54 units. Mason sold 492 units at $126 each. All purchases and sales were made with cash. Operating expenses amounted to $3.825. Exercise 5-4A (Algo) Part a 140 units@ $42 406 units @ $63 Required a. Compute the gross margin for Mason Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round cost per unit to 3 decimal places and final answers to the nearest whole dollar amount. FIFO LIFO Weighted average: Gross Margin
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! 1 A 1 Current Attempt in Progress Sunland Company had an increase in inventory of $55200 The cost of goods sold was $91700. There was a $7000 decrease in accounts payable from the prior period. What were Sunland's cash payments to suppliers? N 2 O$98700 O $153900 O $62200 O $139900 Save for Later W S 2000 8 X command 9. E D $ 4 C R 8 F 5 T V MacBook Air 6 G Y B & 7 H U Attempts: 0 of 1 used 8 1 9 K N M Submit Answer 30
Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: January 20 April 21 July 25 September 19 Purchased 330 units @ $10 = Purchased 80 units @ $11 = Purchased 210 units @ $13 = Purchased 60 units @ $14 = During the year, The Shirt Shop sold 520 T-shirts for $19 each. Exercise 5-5 (Algo) Part b b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Gross margin FIFO LIFO $ 3,300 880 2,730 840 Difference
LO 4-1 Exercise 4-4A Recording inventory transactions in the general journal and posting entries to T-accounts: perpetual system Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $15,000 cash. 3. Sold inventory costing $9,000 for $20,000 cash. 4. Paid $1,500 for advertising expense. Required a. Record the general journal entries for the preceding transactions. b. Post each of the entries to T-accounts. c. Prepare a trial balance to prove the equality of debits and credits.
Exercises 6-11A Inventory Turnover and Days’ Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2015. Shown below are data from the company’s accounting records as reported out by the new system: Sales Revenue $8, 000, 000 $11, 000, 000 Cost of Goods Sold 4, 000, 000 4, 800, 000 Beginning Inventory 510, 000 530, 000 Ending Inventory 530, 000 600, 000 Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for 2015 and 2016.
What if the company actually spent $95,000 on overhead costs? What causes a company to have overapplied or underapplied overhead? Is this a situation that would eventually need to be resolved? If so, how?
Required information Exercise 5-5 (Algo) Effect of inventory cost flow on ending inventory balance and gross margin LO 5-1 [The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Purchased 400 units @ $4 = Purchased 90 units $5 = $ 1,600 450 January 20 April 21 July 25 September 19 Purchased 250 units @ $7 = Purchased 60 units @ $9 = During the year, The Shirt Shop sold 650 T-shirts for $14 each. Exercise 5-5 (Algo) Part a Required a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. Note: Round intermediate calculations to 2 decimal places and final answers to nearest whole dollar amount. Ending inventory FIFO $ LIFO 450 1,750 540 Weighted Average
ed ok ences IE 4-3 (Static) Based on Exercise 4-15 Receivables and inventory turnover ratios [LO4-10] Speed Cycles, Incorporated began the year with accounts receivable (net) and inventory balances of $172,000 and $120,400, generated a gross profit of $267,000. respectively. Year-end balances for these accounts were $206,000 and $96,300, respectively. Sales for the year of $430,000 Required: Calculate the receivables and inventory turnover ratios for the year. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect. W S * E D C ** 388 R F V G MacBook Air Y B H N FB K M
Question 28 (of 34) Two different companies, Ripper and Berners, entered into the following inventory transactions during December. Both companies use a perpetual inventory system. December 3-Ripper Corporation sold inventory on account to Berners Corp. for $483,000, terms 1/10, n/30. This inventory originally cost Ripper $310,000. December Corp. inventory to Ripper Corporation for a credit of $3,700. Ripper this inventory to inventory at its original cost of$2,375. December 12 Berners Corp. paid Ripper Corporation for the amount owed. Required: a. Prepare the journal entries to record these transactions on the books of Ripper Corporation. (If no entry is required for a transactionlevent, select Journal Entry Required" in the first account field.) view transaction list view general journal Journal Entry Worksheet Record the entry for sale of inventory on account.