Question 4 : Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000. Instructions: Determine the a) cost of goods sold and b)Gross profit ( show computations )
Create your own company describing the nature of the company and what it provides (should be providing services and assume it is a sole proprietorship) .
Show in details the Accounting cycle (journalizing in general journal, posting in general ledger and preparing financial statements ) taking into consideration the following :
- Transaction to start with not less than 25 transactions ( including at least one unearned and one prepaid transactions )
- Use the coding for the accounts used
- During the adjusting period please make sure you have covered all six categories discussed in class
- Make sure to show the method used to calculate the depreciation highlighting over the reason on choosing this specific method
- Assume you are using the allowance method in estimating the uncollectible accounts for
Accounts receivables .
Question
Question 4 :
Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.
Instructions:
Determine the a) cost of goods sold and b)Gross profit ( show computations )
Question 5 :
Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000 shares of 8%, $60 par value
Jan. 7 Issued 100,000 shares of common stock at $14 per share.
May. 5 Attorneys for the company accepted 200 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $3,200.
June 1 Issued 10,000 share of preferred a stock at $100 per share.
July 4 Issued 10,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Olio Corporation's common stock has been actively traded on the stock exchange at $19 per share at the time of the exchange.
Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share.
Oct. 2 Sold 2,000 shares of the
Oct. 15 Sold 3,000 shares of the treasury stock at $18 per share.
Nov. 1 A cash dividends of $0.25 per share was declared to stockholders of
record on November 15.
Dec. 1 Paid the cash dividends.
Dec.5 A 5% stock dividends was declared. The market price at the
declaration date was $6 per share.
Dec. 30 Distributed the stock dividends shares.
Required: Journalize the 2019 transactions for Olio Corporation.
Question Six:
The following accounts appear in the ledger of Alico Corporation after the books are closed at December 31, 2019.
Common Stock, $2 par value, 700,000 shares authorized, 400,000 shares
issued …………………………………………………………………………$800,000
Paid-in Capital in Excess of Par Value—Common Stock ………………….....650,000
Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 2,000 shares
issued …………………………………………………………………………..200,000
Retained Earnings ……………………………………………………………..900,000
Treasury Stock (10,000 common shares) ………………………………………85,000
Paid-in Capital in Excess of Par Value—Preferred Stock …………………….310,000
Required: Prepare the
Question 7 :
Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 200,000 shares of $5 par value common stock. At December 31, the company declared the following cash dividends:
December 2017 $80,000
December 2018 195,000
December 2019 300,000
Required:
- Show the allocation of dividends to each class of stock, assuming that the
preferred stock is 9% and not cumulative.
- Show the allocation of dividends to each class of stock, assuming that the
preferred stock is 10% and cumulative.
Question 8 :
On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated January 1, 2019, at 104. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end.
Instructions:
Prepare the
- The issuance of bonds on January 1, 2019
- The payment of interest and the discount (or premium) amortization on July 1, 2019.
- The accrual of interest and the discount (or premium) amortization on December 31, 2019.
- The payment of interest on January 1, 2020
Question 9 :
Ratio analysis case:
Select a corporation and get its financial statements, evaluate the firms performance using the ratio analysis and briefly discuss your findings.
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