A assume chippewas uses a periodic system prepare all

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(a) Assume Chippewas uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the (b) Compute the gross profit using the periodic system.
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Name: Date: Instructor: Course: Jan 4 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Jan 11 Account Title Amount Account Title Amount Jan 13 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Jan 20 Account Title Amount Account Title Amount Jan 27 Account Title Amount Account Title Amount Account Title Amount Account Title Amount Text Title Amount Text Title Amount Text Title Formula (c) Assume Chippewas uses a perpetual system. Prepare all necessary journal entries. (d) Compute the gross profit using the perpetual system.
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Name: Solution Date: Instructor: Course: Aug 10 Purchased merchandise on account, terms 2/10, n/30 $12,000 Aug 13 Returned part of the purchase of Aug 10, and received credit on acct $1,200 Aug 15 Purchased merchandise on account, terms 1/10, n/60 $16,000 Aug 25 Purchased merchandise on account, terms 2/10, n/30 $20,000 Aug 28 Paid invoice of August 15 in full. Instructions: Aug 10 Purchases 12,000 Accounts Payable 12,000 Aug 13 Accounts Payable 1,200 Purchases Returns and Allowances 1,200 Aug 15 Purchases 16,000 Accounts Payable 16,000 Aug 25 Purchases 20,000 Accounts Payable 20,000 Aug 28 Accounts Payable 16,000 Cash 16,000 Purchases—addition in cost of goods sold section of income statement. Accounts Payable—current liability in the current liabilities section of the balance sheet. Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse P8-3 (Purchases Recorded Gross and Net) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. Purchase Returns and Allowances—deduction from purchases in cost of goods sold section of the income statement.
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Name: Solution Date: Instructor: Course: Aug 10 Purchases 11,760 Accounts Payable [$12,000 × (100% - 2%)] 11,760 Aug 13 Accounts Payable [$1,200 × (100% - 2%)] 1,176 Purchases Returns and Allowances 1,176 Aug 15 Purchases 15,840 Accounts Payable [$16,000 × (100% - 1%)] 15,840 Aug 25 Purchases 19,600 Accounts Payable [$20,000 × (100% - 2%)] 19,600 Aug 28 Accounts Payable 15,840 Purchases Discount Lost ($16,000 × 1%) 160 Cash 16,000 Aug 31 Purchases Discount Lost [($12,000 - $1,200) × 2%] 216 Accounts Payable 216 Same as part (a) (2) except treat Purchases Discounts Lost as financial expense the income statement. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as finance expenses: (1) Prepare general journal entries to record the transactions.
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  • Spring '12
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  • Accounting, 1966, 1981, 1979, 1970

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