Problem 6.2A - Student Name: Class: McGraw-Hill/Irwin...

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Student Name: Class: McGraw-Hill/Irwin Problem 06-01 CLAYPOOL HARDWARE General Journal Account Titles Debit Credit Nov. 5 Accounts Receivable (Bemidji Construction ) Sales 5 Cost of Goods Sold Inventory 9 Inventory Accounts Payable (Owatonna Tool Company) Dec. 5 Cash Accounts Receivable (Bemidji Construction ) 9 Accounts Payable (Owatonna Tool Company) Cash 31 Cost of Goods Sold Inventory CLAYPOOL HARDWARE Partial Income Statement For the Year Ended December 31, 20__ Net sales Cost of goods sold Gross profit
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Student Name: Class: McGraw-Hill/Irwin Problem 06-01 c. Is Claypool able to pass its extra transportation costs on to its customers? Does the business appear to suffer or benefit financially from its remote location? Explain your reasoning and support your conclusions with specific accounting data comparing the operations of Claypool Hardware with the industry averages. Claypool Industry Hardware Average Difference Annual sales Gross profit Gross profit rate
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Given Data P06-01: CLAYPOOL HARDWARE Selected transactions for the year: Nov. 5 Sales price of lumber on account to Bemidji Construction $13,390 Cost of lumber sold on account to Bemidji Construction 9,105 Nov. 9 Purchase price of tools on account from Owatonna Tool Company 3,800 Dec. 5 Cash collected on receivable from Bemidji Construction
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Problem 6.2A - Student Name: Class: McGraw-Hill/Irwin...

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