7111AFE_Solution_Topic05

7111AFE_Solution_Topic05 - 7111AFE Tutorial Solution Topic...

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7111AFE Tutorial Solution: Topic 5 (15-20 min.) E 5-4 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Sept. 3 Inventory 1,900 GST Clearing 190 Accounts Payable 2,090 7 Accounts Payable 330 Inventory 300 GST Clearing 30 9 Inventory 30 GST Clearing 3 Cash at Bank 33 10 Accounts Receivable 3,410 Sales Revenue 3,100 GST Clearing 310 10 Cost of Goods Sold 1,700 Inventory 1,700 12 Accounts Payable ($2,090 – $330) 1,760 Inventory ($1,760 × 10/11 × 0.02) 32 GST Clearing (32 × 0.10) 3 Cash at Bank ($1,760 × 0.98) 1,725 16 Sales Returns and Allowances 800 GST Clearing 80 Accounts Receivable 880 23 Cash at Bank ($2,530 × 0.97) 2,454 Sales Discounts ($2,530 × 10/11 × .03) 69 GST Clearing ($69 × 0.10) 7 Accounts Receivable ($3,410 – $880) 2,530 (10 min.) E 5-13 Dollar amounts in millions 20X7 Gross profit percentage = Gross profit = $55 – $33 = $22 = 40% Net sales revenue $55 $55 Horngren Accounting 5E , Solutions Manual
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Inventory turnover = Cost of goods sold = $33 = 6.6 Average inventory ($6 + $4) / 2 P5-7 PREPARING A FUNCTIONAL FORMAT INCOME STATEMENT AND A CLASSIFIED BALANCE SHEET (Obj. 3, 5) (30-40 min.) Req. 1 Omega Electronics Income Statement Month Ended 31 July 20X8 Sales revenue $556,600 Less: Sales discounts $ (8,300) Sales returns and allowances (17,900 ) (26,200 ) Net sales revenue $530,400 Cost of goods sold 360,900 Gross profit 169,500 Other income: Interest revenue 1,200 Selling expenses $ 84,600 General expenses 75,800 (160,400) Net profit $ 10,300 Horngren Accounting 5E , Solutions Manual
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7111AFE_Solution_Topic05 - 7111AFE Tutorial Solution Topic...

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