KEY Acct 200 Review 2 Fall 2008

KEY Acct 200 Review 2 Fall 2008 - Accounting 200 Review for...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
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 don’t 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.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Part A: Income Statement (Do the journal entries on the following page first). Sales 2175.00 90.00 Sales Discounts 22.20 112.20 Net Sales 2062.80 Cost of Goods Sold Beginning Inventory 0 Purchases 1500.00 48.00 Purchase Discounts 0 Net Purchases 1452.00 Add: Freight- in 100.00 Cost of Goods Avail for Sale 1552.00 Ending Inventory 450.00 Cost of Goods Sold 1102.00 Gross Profit 960.80
Background image of page 2
PART A Journal Entries Date Account Title DB CR 1/1 Purchases (500*3) 1500 A/P 1500 1/2 Freight-In 100 Cash 100 1/4 A/R (200*6) 1200 Sales 1200 *No entry for freight $ 1/5 90 A/R (15 * 6) 90 1/6 A/P (15*3.2) 48 48 1/13 Cash 1087.80 Sales Disc 22.20 A/R 1110 (1200-90)*1% = $22.20 1/24 Cash (150*6.50) 975 Sales 975
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Part B: Income Statement (Do the journal entries on the following page first). Sales 2175.00 90.00 Sales Discounts 22.20 112.20 Net Sales 2062.80 Cost of Goods Sold 1102.00 Gross Profit 960.80
Background image of page 4
PART B Journal Entries Date Account Title DB CR 1/1 Merch. Inv. 1500 A/P 1500 1/2 Merch. Inv 100 Cash 100 1/4 A/R (200*6) 1200 Sales 1200 1/4 COGS (3.2*200) 640 Merch Inv. 640 ((500*3+100)/500)= 3.20 ea. *No Entry for freight $ 90 A/R (15 * 6) 90 1/5 Merch Inv. 48 COGS (15*3.2) 48 1/6 A/P (15*3.2) 48 Merch Inv. 48 1/13 Cash 1087.80 Sales Disc 22.20 A/R 1110 1/24 Cash 975 Sales 975 1/24 COGS (150*3.2) 480 Merch Inv 480
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Section II Jordan Co’s year-end adjusted trial balance: Pt A DB CR Cash 34821 Accounts Receivable 525
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 12

KEY Acct 200 Review 2 Fall 2008 - Accounting 200 Review for...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online