121_06A - Question 1 Record transactions in general journal...

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Chapter 6 – Page 1 of 13 Question 1 Record transactions in general journal and post to T-accounts below. Account names Debit Credit A Inventory 500,000 Accounts payable 500,000 Purchased inventory on account, $500,000 B Cash 400,000 Sales revenue 400,000 Sold a portion of inventory for $400,000 cash C Cost of goods sold 300,000 Inventory 300,000 Inventory sold in (B) had a purchase cost of $300,000 Inventory Cost of goods sold 500,000 300,000 300,000 200,000 Prepare the related sections of the income statement and the balance sheet as of the end of the year 2011. Income Statement For the year ended December 31, 2011 Sales revenue 400,000 Cost of goods sold 300,000 Gross profit 100,000 Balance Sheet December 31, 2011 Inventory 200,000 What did you learn?
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Chapter 6 – Page 2 of 13 Question 2 Sunshine Corporation purchases computer keyboards for $30 and sells them for $50. Record transactions in the general journal and post them to T-accounts below. Account names Debit Credit A Inventory 30,000 Accounts payable 30,000 Purchased 1,000 keyboards at $30 each B Cash 20,000 Sales revenue 20,000 Sold 400 keyboards at $50 each C Cost of goods sold 12,000 Inventory 12,000 Inventory sold in (B) had a purchase cost of $30 each Inventory Cost of goods sold 30,000 12,000 12,000 18,000 Prepare the related sections of the income statement and the balance sheet as of the end of the year 2011. Income Statement For the year ended December 31, 2011 Sales revenue (400 units x $50 each) 20,000 Cost of goods sold (400 units x $30 each) 12,000 Gross profit (400 units x $20 each) 8,000 Balance Sheet December 31, 2011 Inventory (600 units x $30 each) 18,000 What did you learn?
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Chapter 6 – Page 3 of 13 Question 3 A. If beginning inventory is $100, purchases are $500 and ending inventory is $400 calculate cost of goods sold. Beginning inventory 100 + Purchases 500 = Goods available 600 Ending inventory 400 = Cost of goods sold 200 B. If beginning inventory is $5,000, purchases are $20,000 and cost of goods sold is $18,000 calculate ending inventory. Beginning inventory 5,000 + Purchases 20,000 = Goods available 25,000 Cost of goods sold 18,000 = Ending inventory 7,000 What did you learn?
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Chapter 6 – Page 4 of 13 Question 4 Stardust Corporation had the following inventory record for the year. Units
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This note was uploaded on 10/24/2010 for the course ACCOUNTING 31609 taught by Professor R.ambrose during the Fall '09 term at San Mateo Colleges.

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121_06A - Question 1 Record transactions in general journal...

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