ch5sol

ch5sol - EXERCISE 5-8A a. Transaction Period Costs Product...

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Unformatted text preview: EXERCISE 5-8A a. Transaction Period Costs Product Costs Not Applicable 1.  2.  3.  4.  5.  6.  7.  8.  9.  10.  5-1 EXERCISE 5-8A (cont.) b. Nigil Co. Horizontal Statements Model for 2010 Balance Sheet Income Statement Statement of Assets = Liab. + Stkholders Equity Rev.- Exp. = Net Inc. Cash Flows Cash + A. Rec. + Mdse. Inv. = A. Pay. + C. Stk. + Ret. Ear. 1. Stock 10,000 + NA + NA = NA + 10,000 + NA NA- NA = NA 10,000 FA 2. Pur Inv. NA + NA + 18,000 = 18,000 + NA + NA NA- NA = NA NA 3. Freight (500) + NA + 500 = NA + NA + NA NA- NA = NA (500) OA 4. Ret. Inv. NA + NA + (4,000) = (4,000) + NA + NA NA- NA = NA NA 5a. Sold Inv. NA + 44,000 + NA = NA + NA + 44,000 44,000- NA = 44,000 NA 5b. Cost NA + NA + (14,300) = NA + NA + (14,300) NA- 14,300 = (14,300) NA 6. Pd. Frt. (100) + NA + NA = NA + NA + (100) NA- 100 = (100) (100) OA 7. Coll. AR 16,500 + (16,500) + NA = NA + NA + NA NA- NA = NA 16,500 OA 8. Pd. AP (12,000) + NA + NA = (12,000) + NA + NA NA- NA = NA (12,000) OA 9. Pd. Exp. (2,200) + NA + NA = NA + NA + (2,200) NA- 2,200 = (2,200) (2,200) OA 10. Pd. Exp. (4,400) + NA + NA = NA + NA + (4,400) NA- 4,400 = (4,400) (4,400) OA End. Bal. 7,300 + 27,500 + 200 = 2,000 + 10,000 + 23,000 44,000- 21,000 = 23,000 7,300 NC 5-2 EXERCISE 5-9A a. Purchase $31,000 Less: return (6,400 ) Gross due (subject of the discount) 24,600 Discount percentage x 2 % Amount of discount $ 492 Gross amount due $24,600 Less: discount ( 492 ) Net amount due $24,108 b. Eds Imports Effect of Events on the Financial Statements Events Balance Sheet Income Statement Stmt. of Cash Flows Assets = Liab. + Stkholders Equity Rev.- Exp. = Net Inc. Cash + Mdse. Inv. = A. Pay. + C. Stk. + Ret. Ear. 1. Pur. Inv. NA + 31,000 = 31,000 + NA + NA NA- NA = NA NA 2. Ret. Inv. NA + (6,400) = (6,400) + NA + NA NA- NA = NA NA 3a. Disc....
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ch5sol - EXERCISE 5-8A a. Transaction Period Costs Product...

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