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Concept explainers
Record inventory purchases and sales using a periodic system (LO6–8)
Refer to the transactions in E6–11.
Required:
1. Record the transactions of DS Unlimited, assuming the company uses a periodic inventory system.
2. Record the period-end adjustment to cost of goods sold on August 31, assuming the company has no beginning inventory and ending inventory has a cost of $2,859.50.
Record transactions using a perpetual system (LO6–5)
Flip Side of E6–12
E6–11 DS Unlimited has the following transactions during August.
August 6 Purchases 70 handheld game devices on account from GameGirl, Inc., for $200 each, terms 1/10, n/60.
August 7 Pays $400 to Sure Shipping for freight charges associated with the August 6 purchase.
August 10 Returns to GameGirl six game devices that were defective.
August 14 Pays the full amount due to GameGirl.
August 23 Sells 50 game devices purchased on August 6 for $220 each to customers on account. The total cost of the 50 game devices sold is $10,212.50.
Required:
Record the transactions of DS Unlimited, assuming the company uses a perpetual inventory system.
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Chapter 6 Solutions
Financial Accounting
- Listed below are terms associated with the steps of the accounting processing cycle. Pair each item from List A with the item from List B that is most appropriately associated with it. List A 1. Source documents 2. Transaction analysis 3. Journal 4. Posting 5. Unadjusted trial balance 6. Adjusting entries 7. Adjusted trial balance 8. Financial statements 9. Closing entries 10. Post-closing trial balance List Barrow_forwardThe Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold inventory on account to customers for $200,000 that had a cost of $120,000; (4) collected $180,000 in cash from credit customers; and (5) paid on account to suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the accounting equation for a corporation. Note: Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation. Assets GETNE (3) (4) (5) (1) (2) Liabilities Paid-in capital + Retained Earnings + + + + + + + + +arrow_forwardFinancial accountingarrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningAccounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning
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