Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the "Aerosoles" brand at a total cost of $54,000. The following transactions, relating to the "Aerosoles" brand were completed during the quarter: October 3 October 15 October 26 Purchased 45 pairs of shoes at a cost of $1,900 each. Sold 55 pairs to Cassually Elegant Ltd at a unit price of $2,78o Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. November 10 November 14 Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000. Owing to an increased demand for this brand, the manager of Classique purchased 8o additional pairs of the "Aerosole" brand at a unit cost of $2,500, but additionally there was freight charge of $100 on each pair. November 24 November 30 Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each. A physical stock count on that date revealed that there were 42 pairs of the "Aerosoles" brand in the warehouse. December 4 Purchased 75 pairs of shoes at a total cost of $213,750. 5 pairs of the shoes purchased on December 4 were returned to the supplier as they were of the wrong description. Sold 70 pairs to Regal Ltd. at a unit selling price of $4,400. December 15 December 30 All purchases were on account and received on the dates stated and Classique Designs uses the FIFO method to account for inventory. Required: i) Prepare a perpetual inventory record for Classique Designms, to determine the value of ending inventory at December 31, 2013, and the total amount to be assigned to cost of goods sold for the period. ii) Calculate the gross profit for the period. iii) You are told that 15 of the units sold on November 24, 2013 were on account. State the journal entries necessary to record the transactions on November 14 and November 24, assuming the - Periodic inventory system - Perpetual inventory system. business uses the:
Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the "Aerosoles" brand at a total cost of $54,000. The following transactions, relating to the "Aerosoles" brand were completed during the quarter: October 3 October 15 October 26 Purchased 45 pairs of shoes at a cost of $1,900 each. Sold 55 pairs to Cassually Elegant Ltd at a unit price of $2,78o Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. November 10 November 14 Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000. Owing to an increased demand for this brand, the manager of Classique purchased 8o additional pairs of the "Aerosole" brand at a unit cost of $2,500, but additionally there was freight charge of $100 on each pair. November 24 November 30 Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each. A physical stock count on that date revealed that there were 42 pairs of the "Aerosoles" brand in the warehouse. December 4 Purchased 75 pairs of shoes at a total cost of $213,750. 5 pairs of the shoes purchased on December 4 were returned to the supplier as they were of the wrong description. Sold 70 pairs to Regal Ltd. at a unit selling price of $4,400. December 15 December 30 All purchases were on account and received on the dates stated and Classique Designs uses the FIFO method to account for inventory. Required: i) Prepare a perpetual inventory record for Classique Designms, to determine the value of ending inventory at December 31, 2013, and the total amount to be assigned to cost of goods sold for the period. ii) Calculate the gross profit for the period. iii) You are told that 15 of the units sold on November 24, 2013 were on account. State the journal entries necessary to record the transactions on November 14 and November 24, assuming the - Periodic inventory system - Perpetual inventory system. business uses the:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
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The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
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