Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be 150 unit. Purchases Units Unit Cost 3/1 Beginning inventory 150 $40 3/3 Purchase 50 $50 3/10 Purchase 250 $55 3/30 Purchase 100 $65 Instruction (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for April. (Show computations) (b) Using the weighted average method, calculate the amount assigned to the inventory on hand on April 30. (Show computations) (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on April 30. (Show computations)
Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be 150 unit.
Purchases
Units Unit Cost
3/1 Beginning inventory 150 $40
3/3 Purchase 50 $50
3/10 Purchase 250 $55
3/30 Purchase 100 $65
Instruction
(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for April. (Show computations)
(b) Using the weighted average method, calculate the amount assigned to the inventory on hand on April 30. (Show computations)
(c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on April 30. (Show computations)
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
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