Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 6, Problem 6.3AP
1.
To determine
To record: The transactions of the Company CD for the month of July using perpetual inventory system.
2.
To determine
To prepare: The top section of the multi-step income statement through gross profit for the month of July.
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Prepare the necessary general journal entries for the month of October for Wildhorse Retail for each situation given below. Wildhorse uses a perpetual inventory system. List all debit entries before credit entries.)
Oct. 5
Paid cash of $15,372 for operating expenses that were incurred and properly recorded in the previous period.
9
Purchased merchandise for $27,000 on account. Credit terms: 3/10, n/30.
12
Paid a freight bill of $130 for merchandise purchased on October 9.
17
Paid for merchandise purchased on October 9. The company takes all discounts to which it is entitled.
20
Sold merchandise for $9,760 to Rattles Distribution on account. The cost of the merchandise sold was $3,904. Credit terms: 2/10, n/30.
26
Issued a credit memo to Rattles Distribution for $366 for merchandise returned from the sale on October 20. The cost of the merchandise returned was $228.
At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July.July 3 Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30.July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.July 11 Pay Wholesale Music in full.July 12 Sell CDs to customers on account, $5,800, that had a cost of $3,000.July 15 Receive full payment from customers related to the sale on July 12.July 18 Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30.July 22 Sell CDs to customers for cash, $4,200, that had a cost of $2,500.July 28 Return CDs to Music Supply and receive credit of $300.July 30 Pay Music Supply in full.Required:1. Assuming that CD City uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through gross profit…
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At the beginning of July, CD City has a balance in Inventory of $2,650. The following transactions occur during the month of July.
July 3 Purchase CDs on account from wholesale Music for $1,550, terms 2/10, 1/30.
July 4 Pay cash for freight charges related to the July 3 purchase from wholesale Music, $100.
July 9 Return incorrectly ordered CDs to wholesale Music and receive credit, $300.
July 11 Pay Wholesale Music in full.
July 12 Sell CDs to customers on account, $4,300, that had a cost of $2,250.
July 15 Receive full payment from customers related to the sale on July 12.
July 18 Purchase CDs on account from Music Supply for $2,350, terms 2/10, 1/30.
July 22 sell CDs to customers for cash, $3,450, that had a cost of $1,750.
July 28 Return CDs to Husic Supply and receive credit of $150.
July 30 Pay Music Supply in full.
Required:
1. Assuming that CD City uses a perpetual Inventory system, record the transactions.
2. Prepare the top section of the multiple-step income statement…
Chapter 6 Solutions
Financial Accounting
Ch. 6 - Prob. 1RQCh. 6 - Prob. 2RQCh. 6 - What is the difference among raw materials...Ch. 6 - Prob. 4RQCh. 6 - Prob. 5RQCh. 6 - What is a multiple-step income statement? What...Ch. 6 - Cheryl believes that companies report cost of...Ch. 6 - What are the three primary cost flow assumptions?...Ch. 6 - 9.Which cost flow assumption generally results in...Ch. 6 - Prob. 10RQ
Ch. 6 - Prob. 11RQCh. 6 - 12.Explain how LIFO generally results in lower...Ch. 6 - Prob. 13RQCh. 6 - Explain how freight charges, purchase returns, and...Ch. 6 - Prob. 15RQCh. 6 - Prob. 16RQCh. 6 - Prob. 17RQCh. 6 - Prob. 18RQCh. 6 - Prob. 19RQCh. 6 - How is gross profit calculated? What is the gross...Ch. 6 - 21.Explain how the sale of inventory on account is...Ch. 6 - Prob. 22RQCh. 6 - Prob. 23RQCh. 6 - Prob. 24RQCh. 6 - Prob. 6.1BECh. 6 - Prob. 6.2BECh. 6 - Calculate cost of goods sold (LO62) At the...Ch. 6 - Prob. 6.4BECh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.8BECh. 6 - Identify financial statement effects of FIFO and...Ch. 6 - Prob. 6.10BECh. 6 - Prob. 6.11BECh. 6 - Prob. 6.12BECh. 6 - Prob. 6.13BECh. 6 - Prob. 6.14BECh. 6 - Prob. 6.15BECh. 6 - Prob. 6.16BECh. 6 - Prob. 6.17BECh. 6 - Prob. 6.18BECh. 6 - Prob. 6.19BECh. 6 - Prob. 6.20BECh. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Calculate cost of goods sold (LO62) Russell Retail...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Calculate inventory amounts when costs are rising...Ch. 6 - Calculate inventory amounts when costs are...Ch. 6 - Record Inventory transactions using o perpetual...Ch. 6 - Record inventory purchase and purchase return...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Record transactions using a perpetual system...Ch. 6 - Record transactions using a perpetual system...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Calculate cost of goods sold, the inventory...Ch. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Record inventory purchases and sales using a...Ch. 6 - Prob. 6.20ECh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.2APCh. 6 - Prob. 6.3APCh. 6 - Prob. 6.4APCh. 6 - Prob. 6.5APCh. 6 - Prob. 6.6APCh. 6 - Prob. 6.7APCh. 6 - Prob. 6.8APCh. 6 - Record transactions and prepare a partial income...Ch. 6 - Prob. 6.10APCh. 6 - Calculate ending inventory and cost of goods sold...Ch. 6 - Prob. 6.2BPCh. 6 - Prob. 6.3BPCh. 6 - Prob. 6.4BPCh. 6 - Prob. 6.5BPCh. 6 - Prob. 6.6BPCh. 6 - Prob. 6.7BPCh. 6 - Use the inventory turnover retio end gross profit...Ch. 6 - Record transactions and prepare a partial income...Ch. 6 - Prob. 6.10BPCh. 6 - Prob. 6.1APCPCh. 6 - Prob. 6.2APFACh. 6 - Prob. 6.3APFACh. 6 - Prob. 6.4APCACh. 6 - Prob. 6.5APECh. 6 - Prob. 6.6APIRCh. 6 - Written Communication You have just been hired as...Ch. 6 - Prob. 6.8APEM
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