Required information [The following information applies to the questions displayed below.] Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $500 each. July 17 July 31 August 12 August 22 Purchased 50 watches for $7,500 ($150 per watch) on account. Sold 40 watches for $20,000 cash. Purchased 40 watches for $6,400 ($160 per watch) cash. Sold 30 watches for $15,000 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $9,000 for watches sold on account on August 22. October 27 November 20 December 4 Purchased 80 watches for $13,600 ($170 per watch) cash. Sold 90 watches for $45,000 cash. Purchased 100 watches for $18,000 ($180 per watch) on account. December 8 Sold 40 watches for $20,000 on account. Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.
Required information [The following information applies to the questions displayed below.] Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $500 each. July 17 July 31 August 12 August 22 Purchased 50 watches for $7,500 ($150 per watch) on account. Sold 40 watches for $20,000 cash. Purchased 40 watches for $6,400 ($160 per watch) cash. Sold 30 watches for $15,000 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $9,000 for watches sold on account on August 22. October 27 November 20 December 4 Purchased 80 watches for $13,600 ($170 per watch) cash. Sold 90 watches for $45,000 cash. Purchased 100 watches for $18,000 ($180 per watch) on account. December 8 Sold 40 watches for $20,000 on account. Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter4: The Revenue Cycle
Section: Chapter Questions
Problem 6ICC
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![Required information
[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business
expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features
of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are
waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to
have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of
watches during the second half of 2025. All watches are sold for $500 each.
July 17
July 31
August 12
August 22
Purchased 50 watches for $7,500 ($150 per watch) on account.
Sold 40 watches for $20,000 cash.
Purchased 40 watches for $6,400 ($160 per watch) cash.
Sold 30 watches for $15,000 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $9,000 for watches sold on account on August 22.
October 27
November 20
December 4
Purchased 80 watches for $13,600 ($170 per watch) cash.
Sold 90 watches for $45,000 cash.
Purchased 100 watches for $18,000 ($180 per watch) on account.
December 8 Sold 40 watches for $20,000 on account.
Required:
1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO
perpetual inventory system to account for inventory.
1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe70e6a15-6c8e-4e8c-8856-6620a2af3d04%2F222082d5-43a6-438f-8f2a-0a7f26aa71ac%2Fm6as7xd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business
expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features
of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are
waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to
have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of
watches during the second half of 2025. All watches are sold for $500 each.
July 17
July 31
August 12
August 22
Purchased 50 watches for $7,500 ($150 per watch) on account.
Sold 40 watches for $20,000 cash.
Purchased 40 watches for $6,400 ($160 per watch) cash.
Sold 30 watches for $15,000 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $9,000 for watches sold on account on August 22.
October 27
November 20
December 4
Purchased 80 watches for $13,600 ($170 per watch) cash.
Sold 90 watches for $45,000 cash.
Purchased 100 watches for $18,000 ($180 per watch) on account.
December 8 Sold 40 watches for $20,000 on account.
Required:
1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO
perpetual inventory system to account for inventory.
1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.
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