Chapter 08 Solution - Exercise 8-5 P ERPETUAL S YSTEM P...

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Unformatted text preview: Exercise 8-5 P ERPETUAL S YSTEM P ERIODIC S YSTEM (EUR in 000s) Purchases Inventory 155 Purchases 155 Accounts payable 155 Accounts payable 155 Freight Inventory 10 Freight-in 10 Cash 10 Cash 10 Returns Accounts payable 12 Accounts payable 12 Inventory 12 Purchase returns 12 Sales Accounts receivable 255 Accounts receivable 255 Sales revenue 255 Sales revenue 255 Cost of goods sold 148 No entry Inventory 148 End of period No entry Cost of goods sold (below) 143 Inventory (ending) 30 Purchase returns 12 Inventory (beginning) 20 Purchases 155 Freight-in 10 Cost of goods sold: Beginning inventory 20 Purchases 155 Less: Returns (12) Plus: Freight-in 10 Net purchases 153 Cost of goods available 173 Less: Ending inventory (30 ) Cost of goods sold 143 Exercise 8-6 Requirement 1 Purchase price = 100 units x MYR 600 = MYR 60,000 x .70 = MYR 42,000 November 17, 2006 Purchases.................................................................... 42000 .......................................................Accounts payable .........................................................................42,000 November 26, 2006 Accounts payable ...................................................... 42,000 ..................................................Purchase discounts ( 2% x 42,000) .................................................................................... 840 ......................................................................Cash (98% x 42,000) .................................................................................... 41,160 Requirement 2 December 15, 2006 Accounts payable....................................................... 42,000 ............................................................................Cash .........................................................................42,000 Exercise 8-6 (concluded) Requirement 3 Requirement 1: November 17, 2006 Purchases (98% x 42,000) .............................................. 41,160 .......................................................Accounts payable .........................................................................41,160 November 26, 2006 Accounts payable....................................................... 41,160 ............................................................................Cash .........................................................................41,160 Requirement 2: December 15, 2006 Accounts payable....................................................... 41,160 Interest expense (2% x 42,000) ..................................... 840 ............................................................................Cash .........................................................................42,000 Exercise 8-15 Requirement 1 Cost of goods available for sale: SEK Beginning inventory (5,000 x 10.00) 50,000 Purchases: 3,000 x 10.40 31,200 8,000 x 10.65 85,200 116,400 Cost of goods available (16,000 units) 166,400 SEK Cost of goods available for sale (16,000 units)...
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This note was uploaded on 07/06/2011 for the course ECON 103 taught by Professor Frolova during the Spring '11 term at London College of Accountancy.

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Chapter 08 Solution - Exercise 8-5 P ERPETUAL S YSTEM P...

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