Recitation- Ch 5 solutions

Recitation- Ch 5 solutions - (15-20 min.) E 5-17 Journal...

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(15-20 min.) E 5-17 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Feb. 3 Inventory 2,000 Accounts Payable 2,000 7 Accounts Payable 300 Inventory 300 9 Inventory 50 Cash 50 10 Accounts Receivable 3,100 Sales Revenue 3,100 10 Cost of Goods Sold 1,700 Inventory 1,700 12 Accounts Payable ($2,000 $300) 1,700 Inventory ($1,700 × .02) 34 Cash ($1,700 $34) 1,666 16 Sales Returns and Allowances 500 Accounts Receivable 500 23 Cash ($2,600 $78) 2,522 Sales Discounts ($2,600 × .03) 78 Accounts Receivable ($3,100 $500) 2,600 Chapter 5 Merchandising Operations 71
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(15-20 min.) E 5-20 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT CLOSING ENTRIES 2008 Jan. 31 Sales Revenue 38,400 Interest Revenue 40 Income Summary 38,440 31 Income Summary 36,130 Cost of Goods Sold 27,000 Other Expense 1,600 Selling Expense 6,800 Interest Expense 30 General and Administrative Expense 700 31 Income Summary ($38,440 $36,130) 2,310 Jackson, Capital 2,310 31 Jackson, Capital 300 Jackson, Withdrawals 300 Req. 2 Income Summary Jackson, Capital Clo. 36,130 Clo. 38,440 Bal. 8,740 Clo. 2,310 Clo. 300 Clo. 2,310 Bal. 10,750 Chapter 5 Merchandising Operations 72
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(10-15 min.) E 5-23 Req. 1 Azalea Technology Income Statement (multi-step) Year Ended December 31, 2008 Sales revenue $241,000 Less: Sales discounts $9,000 Sales returns 4,600 (13,600 ) Net sales revenue 227,400 Cost of goods sold 99,400 Gross profit 128,000 Operating expenses: Selling expenses $ 37,800 General expenses 23,500 61,300 Operating income 66,700 Other revenue: Interest revenue 1,300 Net income $ 68,000 Req. 2 Current year Last year Inventory turnover = Cost of goods sold Average inventory = $99,400 ($26,400 + $21,000) / 2 = 4.2 3.8 The increase in the inventory turnover ratio suggests improvement in inventory turnover. Chapter 5 Merchandising Operations 73
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(10-15 min.) E 5-24 Azalea Technology Income Statement (single step) Year Ended December 31, 2008 Revenues: Sales revenue $241,000 Less: Sales discounts $9,000 Sales returns 4,600
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This note was uploaded on 03/16/2012 for the course FENS 101 taught by Professor Selçukerdem during the Fall '12 term at Sabancı University.

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Recitation- Ch 5 solutions - (15-20 min.) E 5-17 Journal...

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