Homework Help is Here – Start Your Trial Now!
Business
Accounting
On June 1, Grissol Inc. had an inventory of 10 barbeques at a cost of $440 each. Grissol uses a periodic inventory system. During the month of June the following transactions occurred: Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ Queen, terms n/30. 5 Paid $200 freight for the barbeques purchased on June 3. 6 Sold 12 barbeques to Outdoor Living for $760 each, term n/30. The returns estimate was 5%. Received credit from BBQ Queen for the return of two defective barbeques. Issued a credit to Outdoor Living for the return of one defective barbeque. Received a credit from BBQ Queen for the defective barbeque returned by Outdoor Living. Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, 7 13 16 19

On June 1, Grissol Inc. had an inventory of 10 barbeques at a cost of $440 each. Grissol uses a periodic inventory system. During the month of June the following transactions occurred: Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ Queen, terms n/30. 5 Paid $200 freight for the barbeques purchased on June 3. 6 Sold 12 barbeques to Outdoor Living for $760 each, term n/30. The returns estimate was 5%. Received credit from BBQ Queen for the return of two defective barbeques. Issued a credit to Outdoor Living for the return of one defective barbeque. Received a credit from BBQ Queen for the defective barbeque returned by Outdoor Living. Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, 7 13 16 19

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
answer quickly
On June 1, Grissol Inc. had an inventory of 10 barbeques at a cost of $440 each. Grissol uses a periodic inventory system. During the month of June the following transactions occurred: Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ Queen, terms n/30. 5 Paid $200 freight for the barbeques purchased on June 3. Sold 12 barbeques to Outdoor Living for $760 each, term n/30. The returns estimate was 5%. 7 Received credit from BBQ Queen for the return of two defective barbeques. Issued a credit to Outdoor Living for the return of one defective barbeque. Received a credit from BBQ Queen for the defective barbeque returned by Outdoor Living. 13 16 19 Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, terms 2/10, n/30. They pay their invoice on 29th. A customer returns a defective BBQ and is due a full refund of $1200 and will be paid on July 3. The BBQ will be repaired and returned to inventory next month. 24 25 Paid freight of $200 on the June 19 purchase. Paid $2760 for yearly BBQ inventory insurance renewal. The policy began on May 1 (prior month) A last minute order comes in for 30 BBQS to be delivered Aug 1. The price for each is $750. A 40% deposit is received. 30 30 On June 30, Grissol's ending inventory was $6,440 Required a. Prepare journal entries to record the above transactions. b. Calculate the cost of goods sold for June. c. What is the gross profit, gross margin, net profit, profit margin, and percentage of COGS? d. What do you interpret and advise from point (c)?
Transcribed Image Text:On June 1, Grissol Inc. had an inventory of 10 barbeques at a cost of $440 each. Grissol uses a periodic inventory system. During the month of June the following transactions occurred: Jun 3 Purchased 25 barbeques at a cost of $440 each from BBQ Queen, terms n/30. 5 Paid $200 freight for the barbeques purchased on June 3. Sold 12 barbeques to Outdoor Living for $760 each, term n/30. The returns estimate was 5%. 7 Received credit from BBQ Queen for the return of two defective barbeques. Issued a credit to Outdoor Living for the return of one defective barbeque. Received a credit from BBQ Queen for the defective barbeque returned by Outdoor Living. 13 16 19 Purchased 10 barbeques from Backyard Barbecues at a cost of $440 each, terms 2/10, n/30. They pay their invoice on 29th. A customer returns a defective BBQ and is due a full refund of $1200 and will be paid on July 3. The BBQ will be repaired and returned to inventory next month. 24 25 Paid freight of $200 on the June 19 purchase. Paid $2760 for yearly BBQ inventory insurance renewal. The policy began on May 1 (prior month) A last minute order comes in for 30 BBQS to be delivered Aug 1. The price for each is $750. A 40% deposit is received. 30 30 On June 30, Grissol's ending inventory was $6,440 Required a. Prepare journal entries to record the above transactions. b. Calculate the cost of goods sold for June. c. What is the gross profit, gross margin, net profit, profit margin, and percentage of COGS? d. What do you interpret and advise from point (c)?
Expert Solution
steps

Step by step

Solved in 4 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS