# Ch6 Homework graded - Homework Manager Financial Accounting...

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Question 1: Score 2/2 Question 2: Score 2/2 Question 3: Score 2/2 Your response Correct response Exercise 6.2: Effects of Basic Merchandising Transactions L.O. 1 Shown below are selected transactions of Konshock's, a retail store that uses a perpetual inventory system. a. Purchased merchandise on account. b. Recognized the revenue from a sale of merchandise on account. (Ignore the related cost of goods sold.) c. Recognized the cost of goods sold relating to the sale in transaction b . d. Collected in cash the account receivable from the customer in transaction b . e. Following the taking of a physical inventory at year-end, made an adjusting entry to record a normal amount of inventory shrinkage. Indicate the effects of each of these transactions on the elements of the company's financial statements shown below. Use the code letters I for increase, D for decrease, and NE for no effect. Ex. 6.2 Income Statement Balance Sheet Transaction Net Sales - Cost of Goods Sold - All Other Expenses = Net Income Assets = Liabilities + Owners' Equity a NE (3%) NE (3%) NE (3%) NE (3%) I (3%) I (3%) NE (3%) b I (3%) NE (3%) NE (3%) I (3%) I (3%) NE (3%) I (3%) c NE (3%) I (3%) NE (3%) D (3%) D (3%) NE (3%) D (3%) d NE (3%) NE (3%) NE (3%) NE (3%) NE (3%) NE (3%) NE (3%) e NE (3%) I (3%) NE (3%) D (3%) D (3%) NE (3%) D (3%) Exercise 6.2: Effects of Basic Merchandising Transactions L.O. 1 Shown below are selected transactions of Konshock's, a retail store that uses a perpetual inventory system. a. Purchased merchandise on account. b. Recognized the revenue from a sale of merchandise on account. (Ignore the related cost of goods sold.) c. Recognized the cost of goods sold relating to the sale in transaction b . d. Collected in cash the account receivable from the customer in transaction b . e. Following the taking of a physical inventory at year-end, made an adjusting entry to record a normal amount of inventory shrinkage. Indicate the effects of each of these transactions on the elements of the company's financial statements shown below. Use the code letters I for increase, D for decrease, and NE for no effect. Ex. 6.2 Income Statement Balance Sheet Transaction Net Sales - Cost of Goods Sold - All Other Expenses = Net Income Assets = Liabilities + Owners' Equity a NE NE NE NE I I NE b I NE NE I I NE I c NE I NE D D NE D d NE NE NE NE NE NE NE e NE I NE D D NE D Your response Correct response Exercise 6.8: Relationships within Periodic Inventory Systems L.O. 4 This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. Ex. 6.8

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Ch6 Homework graded - Homework Manager Financial Accounting...

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