During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $1,620 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $530 from Reynolds with terms 2/10, n/45 Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Cost of inventory as of February 28

During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $2,100 from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $1,620 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $530 from Reynolds with terms 2/10, n/45 Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Cost of inventory as of February 28

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

See similar textbooks

Similar questions

Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $1,980 from Green with terms 3/12, n/45. January 6 Purchased goods from Munoz for $1,250 with terms 3/12, n/45. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $700 from Reynolds with terms n/45. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28, Cost of Inventory
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:Jan. 6 Purchased goods for $1,200 from Green with terms 2/10, n/30.6 Purchased goods from Munoz for $900 with terms 2/10, n/30.14 Paid Green in full.Feb. 2 Paid Munoz in full.28 Purchased goods for $350 from Reynolds with terms 2/10, n/45.Required:Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at thebeginning of January, and no sales were made during January and February. Calculate the cost ofinventory as of February 28.
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $2,200 from Green with terms 3/10, n/30. January 6 Purchased goods from Munoz for $1,900 with terms 3/10, n/30. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $850 from Reynolds with terms n/45. Required: Prepare journal entries to record the transactions, assuming Axe records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: 6 Purchased goods for $1,200 from Green with terms 2/10, n/30. 6 Purchased goods from Munoz for $900 with terms 2/10, n/30. 14 Paid Green in full. Jan. 2 Paid Munoz in full. 28 Purchased goods for $350 from Reynolds with terms n/45. Feb. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Cost of Inventory
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 Paid the balance owed to Diamond Inc.22 Paid Club Corp. in full.Required:Assume that Ace uses a perpetual inventory system and that the company had no inventory on handat the beginning of the month. Calculate the cost of inventory as of June 30.
During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $550 to Wizard Inc. with terms 2/30, n/60. The goods cost Solitare $165. 6 Sold goods to Spyder Corp. for $270 with terms 1/10, n/60. The goods cost Solitare $155. 14 Collected cash for the amount due from Wizard Inc. Feb. 28 Collected cash for the amount due from Spyder Corp. Required: Prepare journal entries to record the transactions, assuming Solitare records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Check During the months of January and February, Axen Corporation purchased goods from three suppliers. The sequence of events w follows: 6 Purchased goods for $2,9ee from Green with terms 2/10, n/30 6 Purchased goods from Munoz for $2,260 with terms 2/10, n/30 14 Paid Green in full Feb. 2 Paid Munoz in full 28 Purchased goods for $690 from Reynolds with terms 2/10, n/45 Jan. Required: Assume that Axen uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Purchases Less: Purchase discount from Green 58 Cost of inventory as of February 28 $ 2,E
During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follows: January 6 Sold goods for $260 to Wizard Incorporated with terms 2/30, n/60. The goods cost Solitare $78. January 6 Sold goods to Spyder Corporation for $104 with terms 2/10, n/30. The goods cost Solitare $68. January 14 Collected cash for the amount due from Wizard Incorporated. February 28 Collected cash for the amount due from Spyder Corporation. Required: Compute the Net Sales Solitare would report over the two months. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net Sales 132 H 11 **** 1 +
During the months of January and February, Solitare Corporation sold goods to three customers.The sequence of events was as follows:Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/10, n/30. The goods costSolitare $70.6 Sold goods to Spyder Corp. for $80 with terms 2/10, n/30. The goods costSolitare $60.14 Collected cash due from Wizard Inc.Feb. 2 Collected cash due from Spyder Corp.28 Sold goods for $50 to Bridges with terms 2/10, n/45. The goods cost Solitare $30.Required:Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the twomonths ended February 28.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $3,400 from Diamond Incorporated with terms 2/12, n/45. June 5 Returned goods costing $1,150 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,350 with terms 2.5/12, n/45. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)