E5-3 & E6-12 - Cash 5,586 Sales Discounts 114...

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FileName: 7676639555750d3740fd2e02077c13333bc7c744.xls, Tab: Exercise E5-3, Page 1 of 2, 10/06/2009, 03:41:13 Name: Date: Instructor: Course: $6,000 of merchandise from Bristol Company FOB shipping point, terms 2/10, n/30. Lippizan pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Bristol for credit on June 12. The scrap value of these goods is $150 On June 19, Lippizan pays Bristol Company in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions: Jun 10 Merchandise Inventory 6,000 Accounts Payable 6,000 Jun 11 Merchandise Inventory 400 Cash 400 Jun 12 Accounts Payable 300 Merchandise Inventory 300 Jun 19 Accounts Payable 5,700 Merchandise Inventory 114 Cash 5,586 $3,000 Jun 10 Accounts Receivable 6,000 Sales 6,000 Cost of Goods Sold 3,000 Merchandise Inventory 3,000 Jun 12 300 Accounts Receivable 300 Merchandise Inventory 150 Cost of Goods Sold 150 Jun 19
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Unformatted text preview: Cash 5,586 Sales Discounts 114 Accounts Receivable 5,700 Financial Accounting, 5th Edition, by Weygandt, Kieso, and Kimmel Solving Financial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse Exercise E5-3, On June 10, Lippizan Company purchased (a) Prepare separate entries for each transaction on the books of Lippizan Company. (b) Prepare separate entries for each transaction for Bristol Company. The merchandise purchased by Lippizan on June 10 had cost Bristol Simpson Appliance 1) FIFO: Date Purchases Sales Balance Jan. 1 $1,800 8 $1,200 $600 10 $3,960 $4,560 15 $600 $3,960 $2,640 $1,320 2) LIFO: Date Purchases Sales Balance Jan. 1 $1,800 8 $1,200 $600 10 $3,960 $4,560 15 $3,300 $1,260 3) Average Cost: Date Purchases Sales Balance Jan. 1 $1,800 8 $1,200 $600 10 $3,960 $4,560 15 $3,257 $1,303 1 set for $600, & 6 Sets for $660. Average Cost = $4,560 / 7 = $651.43...
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This note was uploaded on 04/04/2009 for the course ACC 321 taught by Professor Ahmedmokhtar during the Spring '09 term at Ain Shams University.

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E5-3 & E6-12 - Cash 5,586 Sales Discounts 114...

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