MGT131 - Chapter8 merch MFG Invemtory 2/2/2010 RM WIP FG RM...

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Chapter8 2/2/2010 merch Invemtory MFG RM WIP FG CC (DL,OH) RM WIP FG Debit Credit BI Perpetual GOGS P Inv GAFS Inv EI AP COGS Periodic Periodical Purchases Buy one unit $ AP 15 25 COGS 30 Purchases Sell 2 units COGS EI FIFO LISH LIFO FISH W/A SPEC ID LIFO MOST CURRENT IS FIFO most current BS UNITS FIFO LIFO BI 0 0 0 LIFO not allowed by IFRS P 3 70 70 GAFS 3 70 70 EI 1 30 55 COGS 2 40 15 Perpetual INV INV inv 70 70 40 AP 70 30 COGS 40 INV 40
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Periodic purch 70 AP 70 COGS 40 INV 30 PURCH 70 INV BI 5000 5000 800 P 25000 GAFS 30000 4200 EI 4200 COGS 25800 1) PURCH 25000 AP 25000 2) PURCH 25000 INV 800 COGS 25800 FS Actual BI 0 YEAR 1 BS (200) P 50000 50000 (200) GAFS 50000 50000 EI 5000 5200 COGS 45000 44800 BI 5000 5200 YEAR 2 BS 0 P 60000 60000 200 GAFS 65000 65200 EI 6000 6000 SELF CORRECTING ENTRY COGS 59000 59200 BI 5000 5200 YEAR 2 S BS 250 P 60000 60000 450 GAFS 65000 65200 In the end of the year a overstated BS EI 6000 COGS 59000 59450 ex 8-12 ex 8-15
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9-Feb Adj entries 8 questions 12.5 points Reversing entries Cash vs accrual EPS RE STMT OCI STMT os S/H equity Sales Disc Bank rec Allow/ BDE FIFO/LIFO Inv error Adj entries trail balance Error wage 1500 300 w/p 500 300 Rent  0 300 Rent pay 700 300 Adj rent 300 adj rent pay 1000 t-account 700 300 1000 incurr wages  1000 31-Jan pay wages 1/31 w/p 400 wp 1-Jan w/p  400 400 400 wages 400 wages 31-Jan cash 1400 1400 400 wages 1400 1000 AR Cash--> Accrual Beg 100 AR^ End 900 ^800 NI AR goes dowNI goes down Discontinued ops Extrodinary items casualty loss EPS NI/#shares
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RE STMT too high DEPR 10000 too low 8500 Tax 40% RE -6000 5610 OCI Unrealized gain or loss on security buy adjust to fair value sell it 1-Dec Buy  2500 30-Dec FMV 2950 15-Jan sell 280 1-Dec Security 2500 Cash 2500 31-Dec Security 450 oci 450 Gain 15-Jan cash 2800 OCI 450 Reduction Security 2950 Gain  300 STMT S/H equity Unrealized gain  = OCI Sales Disc cash on hand Bank Rec Bank does not know aboutoutstanding chackes You don't know
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MGT131 - Chapter8 merch MFG Invemtory 2/2/2010 RM WIP FG RM...

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