ACCT200 - Accounting 200 Review for Exam 2 Chapters 5, 6,...

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Unformatted text preview: Accounting 200 Review for Exam 2 Chapters 5, 6, and 7 Chapter 5 Section I The following events occur in January (Previous beginning inventory was 0): 1/1 Calcutron Company buys 500 calculators at $3.00 each terms 1/10 net 30 from Calculator world. Calculators are shipping FOB Shipping point. 1/2 Freight costs for calculator purchase of $100.00 are paid by the responsible party. 1/4 Calcutron Co. sells Doggett, Co. 200 calculators for $6.00 each, terms 2/10 net 30. (Hint: If calculating value of Merchandise Inventory sold is required, don't forget to include freight costs if appropriate). 1/4 Calcutron Co ships Doggett, Co the calculators FOB Shipping point. Freight Costs are $35. 1/5 Doggett, Co. Returns 15 calculators to Calcutron that dont work. 1/6 Calcutron returns the nonworking calculators to Calculator World and receives a credit for a calculators equal to purchase price plus any freight-in costs paid associated with the original purchase. 1/13 Calcutron receives payment from Doggett, Co. 1/24 Calcutron makes a cash sale of 150 calculators at $6.50 each. PART A: Make the appropriate entries for Calcutron using the periodic system. Assuming that Ending Inventory is $450.00. Make the income statement through gross profit. PART B: Using the same information make the appropriate entries for Calcutron using the perpetual system. Assuming that Ending Inventory is $450.00. Make any necessary adjusting entries. Make the income statement through gross profit. Part A: Income Statement (Do the journal entries on the following page first). PART A Journal Entries Date Account Title DB CR Part B: Income Statement (Do the journal entries on the following page first). PART B Journal Entries Date Account Title DB CR Section II Jordan Cos year-end adjusted trial balance: Pt A DB CR Cash 34821 Accounts Receivable 525 Merchandise Inventory 1305 Equipment 432 Accumulated Deprec. 233 Unearned Revenue 4325 Notes Payable 653 Jordan Cap. 51979 Jordan Drawing 7645 Goodwill 2345 Sales 54234 Sales R & A 453 Sales Disc 543 Cost of Goods Sold 34444 Admin. Salaries Expense 4532 Advertising Expense 542 Deprec. Exp- Office Equip. 875 Freight- Out 300 Commission Expense 19850 Utilities Exp 1295 Insurance Exp. 2342 Interest Revenue from Note Receivable 75 Gain From Sale of Truck 1000 Interest Expense 250 112499 112499 Part A: In the column above on the left indicate what portion of the multi-step income statement the account would appear on. If not an income statement account, leave blank....
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This note was uploaded on 10/08/2010 for the course ACCT 200 taught by Professor Clement during the Fall '09 term at North Dakota.

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ACCT200 - Accounting 200 Review for Exam 2 Chapters 5, 6,...

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