W2 Chapter 5 & 6 Exercises

W2 Chapter 5 & 6 Exercises - Brandi Murobayashi April...

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Brandi Murobayashi April 11, 2011 Mr. Brown ACC 305 Ch. 5 Exercises E5-7 Peter Kalle Company had the following account balances at year-end: cost of goods sold $60,000; merchandise inventory $15,000; operating expenses $29,000; sales $108,000; sales discounts $1,200; and sales returns and allowances $1,700. A physical count of inventory determines that merchandise inventory on hand is $14,100. (a) Prepare the adjusting entry necessary as a result of the physical count. Dec 31 Cost of Goods Sold 900 Merchandise to Inventory 900 (To adjust inventory to physical count) (b) Prepare closing entries Dec 31 Sales 108,000 Income Summary 108,000 (To close income statement accounts with credit balances) 31 Income Summary 91,900 Sales Returns and Allowances 1,700 Sales Discounts 1,200 Cost of Goods Sold 60,000 Operating Expenses 29,000 (To close income statement accounts with debit balances) 31 Income Summary 16,100 Retained Earnings 16,100 (To close net income to retained earnings) E5-15 The trial balance of G. Durler Company at the end of its fiscal year, August 31, 2011, includes these accounts: Merchandise Inventory $17,200; Purchases $149,000; Sales $190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $2,000.The ending merchandise inventory is $25,000. Prepare a cost of goods sold section for the year ending August 31 (periodic inventory). Cost of goods sold Inventory, September 1 $17,200 Purchases 149,000 Less: Purchase returns and allowances 2,000 Net purchases 147,000 Add: Freight-in 4,000 Cost of goods purchased 151,000 Cost of goods available for sale 168,200 Inventory, August 31 25,000 Cost of goods sold 143,200 P5-2A Olaf Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and Common Stock of $9,000. Apr 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30.
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4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30.The cost of the merchandise sold was $4,100. 5 Paid $240 freight on April 4 sale. 6 Received credit from Dakota Supply Co. for merchandise returned $500. 11 Paid Dakota Supply Co. in full, less discount. 13 Received collections in full, less discounts, from customers billed on April 4. 14 Purchased merchandise for cash $3,800. 16 Received refund from supplier for returned goods on cash purchase of April 14, $500. 18 Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point, terms 2/10, n/30. 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $6,400.The merchandise sold had a cost of $5,120. 26
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This note was uploaded on 02/22/2012 for the course ACC 101 taught by Professor Black during the Spring '12 term at University of Phoenix.

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W2 Chapter 5 & 6 Exercises - Brandi Murobayashi April...

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