ress Cos PIoblem 6.8B SUI sells presses. At 31 December 2012, SUI's inventory anounted to $5 million. During the first week of January 2013, lhe company made only one purchase and One sale. Thesc transactions were as follov s: 5 Jan Purchased 60 machines from Double Co. The tolal cost of these machines was $400,000, terms 3/10, n/60 Sold 30 different types of products on account to Air Company. The total sales price was $280,000, terms 5/10, n/90. The total cost of these 30 units to SUI was S100,000 (net of the purchase discount) 10 Jan. SUI has a full-time accountant and a computer-hased accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions b. Prepare journal entries to record these transactions, assuming SUI uses a perpetal inventory system d. Compute the balance in the Inventory control account at the close of business on 10 Jaunuary. Prepare journal entries to record the two transactions, assuming that SUI uses a periodic inventory system. f. Compute the cost of goods sold for the two weeks of January assuming use of the periodic system. (Use your answer to part d as the ending inventorv.) C.
ress Cos PIoblem 6.8B SUI sells presses. At 31 December 2012, SUI's inventory anounted to $5 million. During the first week of January 2013, lhe company made only one purchase and One sale. Thesc transactions were as follov s: 5 Jan Purchased 60 machines from Double Co. The tolal cost of these machines was $400,000, terms 3/10, n/60 Sold 30 different types of products on account to Air Company. The total sales price was $280,000, terms 5/10, n/90. The total cost of these 30 units to SUI was S100,000 (net of the purchase discount) 10 Jan. SUI has a full-time accountant and a computer-hased accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions b. Prepare journal entries to record these transactions, assuming SUI uses a perpetal inventory system d. Compute the balance in the Inventory control account at the close of business on 10 Jaunuary. Prepare journal entries to record the two transactions, assuming that SUI uses a periodic inventory system. f. Compute the cost of goods sold for the two weeks of January assuming use of the periodic system. (Use your answer to part d as the ending inventorv.) C.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:ress Cos
PIoblem 6.8B SUI sells presses. At 31 December 2012, SUI's inventory anounted to
$5 million. During the first week of January 2013, lhe company made only one purchase and
One sale. Thesc transactions were as follov s:
5 Jan
Purchased 60 machines from Double Co. The tolal cost of these machines was
$400,000, terms 3/10, n/60
Sold 30 different types of products on account to Air Company. The total sales price
was $280,000, terms 5/10, n/90. The total cost of these 30 units to SUI was S100,000
(net of the purchase discount)
10 Jan.
SUI has a full-time accountant and a computer-hased accounting system. It records sales at
the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts
receivable, inventory, and accounts payable.
Instructions
b. Prepare journal entries to record these transactions, assuming SUI uses a perpetal inventory
system
d. Compute the balance in the Inventory control account at the close of business on 10 Jaunuary.
Prepare journal entries to record the two transactions, assuming that SUI uses a periodic
inventory system.
f. Compute the cost of goods sold for the two weeks of January assuming use of the periodic
system. (Use your answer to part d as the ending inventorv.)
C.
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