Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 6A, Problem 6P
(Record transactions in the periodic system; report inventory items in the financial statements) Accounting records for Just Desserts, Inc., show the following data for the year ended December 31, 2018 (amounts in thousands)
| Inventory, Dec 31, 2017 ............................................. | $ 510 |
| Purchases of inventory (on account) .......................... | 1,180 |
| Sales of inventory—80% on account, 20% for cash ... | 3,400 |
| Inventory at the lower of FIFO cost on marker, Dec 31, 2018 ........................ | 690 |
Requirements
1. Journalize Just Desserts’ inventory transactions for the year under the periodic system. Show all amounts in thousands.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands). Show the computation of cost of goods sold.
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Students have asked these similar questions
The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008:
Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250
Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100
Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600
Purchases returns and allowances . . . . . . . . . . . . . . 41,200
Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000
Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250
a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system.
b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.
Accounting
Abacus Ltd undertook the following transactions during May 2022.
May. 1 Purchased $18,480 inventory; terms 1/10, n/30.
8 Returned $1,980 of the inventory purchased on May 1.
16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700.
Required:
a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive.
b) Prepare the journal entries to record the 8th and 16th transactions using perpetual inventory system. Ignore GST.
Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7) during November.
Nov.1 Balance on hand, 50 units, cost $60 each…………………………………….$3,000
Nov.4Purchase, 20 Units, cost $65 each……………………………………………..$1300
Nov.8Sale, 35 units, Sale price $100 each…………………………………………...$3500
Nov.9 Purchase, 40 units, cost $65 each……………………………………………..$2600
Nov.20Sale, 60 units, sale price $100 each…………………………………………..$6000
Nov.25Purchase 40 units, cost $70 each…………………………………….……….$2800
Nov.30Sale 5 units sale price $110 ea
Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7)…
Chapter 6A Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 6A - (Record inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and prepare the income...Ch. 6A - (Compute amounts for the GAAP inventory...Ch. 6A - (Journal inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and gross profit on...Ch. 6A - (Record transactions in the periodic system;...
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