CH6_revised_Part 2

# CH6_revised_Part 2 - Allowance for bad debts Accounts...

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Chapter 6 Practice Problem YOU GOT 0 % CORRECT Balance 1/1/04 Quantity Unit cost Total 1/2 purchase 5 \$150 \$750 750 1/12 purchase 10 \$175 \$1,750 1,750 1/25 purchase 7 \$200 \$1,400 1,400 1/30 purchase 8 \$225 \$1,800 675 Total 30 \$5,700 4,575 John sold 25 desks during the month. Record Cost of goods sold for January using FIFO, First-In, First-Out Cash Inventory = Capital stock Income statement accounts 4,000 3,460 -592 5,700 2,000 5,000 6,160 CGS -750 1/31 balance 4,000 3,460 -592 4,950 2,000 5,000 6,160 Now assume LIFO. What is the entry for Cost of Goods Sold for 2004? Balance 1/1/04 Quantity Unit cost Total 1/2 purchase 5 \$150 \$750 1/12 purchase 10 \$175 \$1,750 1,750 1/25 purchase 7 \$200 \$1,400 1,400 1/30 purchase 8 \$225 \$1,800 1,800 Total 30 \$5,700 4,950 Cash Inventory = Capital stock Income statement accounts 4,000 3,460 -592 5,700 2,000 5,000 6,160 CGS 1/31 balance 4,000 3,460 -592 5,700 2,000 5,000 6,160 1. Purchasing records reveal the following: Accounts receivable

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Unformatted text preview: Allowance for bad debts Accounts payable Retained earnings 1/31 Preliminary balance Accounts receivable Allowance for bad debts Accounts payable Retained earnings 1/31 Preliminary balance ATTENTION: Please do not cut/paste at all or copy/paste from outside the worksheet. + Now assume Average Cost. What is the ending balance in inventory and the entry for Cost of Goods Sold for 2001? Balance 1/1/04 Quantity Unit cost Total 1/2 purchase 5 \$150 \$750 1/12 purchase 10 \$175 \$1,750 1/25 purchase 7 \$200 \$1,400 1/30 purchase 8 \$225 \$1,800 Total 30 \$5,700 Cash Inventory = Capital stock Income statement accounts 4,000 3,460-592 5,700 2,000 5,000 6,160 CGS 1/31 balance 4,000 3,460-592 5,700 2,000 5,000 6,160 Accounts receivable Allowance for bad debts Accounts payable Retained earnings 1/31 Preliminary balance...
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## This note was uploaded on 04/07/2008 for the course ACCT 205 taught by Professor Johnson during the Spring '08 term at St. Thomas.

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CH6_revised_Part 2 - Allowance for bad debts Accounts...

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