Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 6BTN
TEAMWORK IN ACTION C1 C2
BTN 4-6 Official Brands’s general ledger and supplementary records at the end of its current period reveal the following.
| Sales. Gross | $60,000 | Merchandise inventory (beginning of period) | $98,000 |
| Sales returns & allowances | 20,000 | Invoice cost of merchandise purchases | 360,000 |
| Sales discounts | 13,000 | Purchases discounts received | 9,000 |
| Cost of transportation-in | 22,000 | Purchases returns and allowances | 11,000 |
| Operating expenses | 50,000 | Merchandise inventory (end of period) | 84,000 |
Required
- Each member of the team is to assume responsibility for computing one of the following items. You are not to duplicate your teammates’ work. Get any necessary amounts to compute your item from the appropriate teammate. Each member is to explain his or her computation to the team in preparation for to the class.
- Net sale
- Total cost of merchandise purchases
- Cost of goods sold
- Net income
- Check your net income with instructor. If correct, proceed to step 3.
- 3. Assume that a physical inventory count finds that actual ending inventory is $76,000. Describe how this affects previously computed amounts in step 1. Point: In terms of four, assign the same student a and e. Rotate teams for reporting an a different computation and the analysis in step3.
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Generalized Statement
Instructions
Instructions
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Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20-.
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Merchandise Inventory, December 31, 20--
875
33,000
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27,600
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700
Phone Expense
900
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H
Problem 8
financial data for the Cloud 9 Retailer:
Ending
Item
Beginning
$7,000
Inventory
$5.000
2.400
Accounts receivable
1.600
4,800
Accounts payable
2.700
Net credit sales
$50.000
Cost of goods sold
30.000
Requirement:
Calculate the operating and cash conversion cycles.
Instructions:
Choose the
on the
necessary,
OPERATING AND CASH the following selected
Chapter 5 Problems
Sales-related transactions using perpetual inventory system.
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:
Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.
Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000.
Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.
Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.
Received check for amount due from Equinox Co. for sale on March 2.
Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.
Sold merchandise on account to Targhee Co., $27,500, terms…
Chapter 4 Solutions
Financial and Managerial Accounting
Ch. 4 - Prob. 1MCQCh. 4 - A company purchased $4,500 0f merchandise on May 1...Ch. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - Prob. 2DQCh. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - How does a company that uses a perpetual inventory...
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - Prob. 11DQCh. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Merchandise accounts and computations C2 Use the...Ch. 4 - Computing net invoice amounts P1 Compute the...Ch. 4 - Recording purchases, returns, and discounts taken...Ch. 4 - Prob. 6QSCh. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Prob. 9QSCh. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - Prob. 14QSCh. 4 - Prob. 15QSCh. 4 - Prob. 16QSCh. 4 - Prob. 17QSCh. 4 - Prob. 18QSCh. 4 - Prob. 19QSCh. 4 - Prob. 20QSCh. 4 - Prob. 21QSCh. 4 - Prob. 22QSCh. 4 - Prob. 23QSCh. 4 - Prob. 2ECh. 4 - Exercise 4-3 Recording purchase, purchase returns...Ch. 4 - Exercise 4-4 Recording sales, sales returns and...Ch. 4 - Prob. 5ECh. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 13ECh. 4 - Exercise 4-14 Computing and analysinig acid-test...Ch. 4 - Prob. 15ECh. 4 - Prob. 16ECh. 4 - Prob. 17ECh. 4 - Exercise 4-18 preparing an income statement under...Ch. 4 - Prob. 19ECh. 4 - Prob. 20ECh. 4 - Prob. 21ECh. 4 - Prob. 22ECh. 4 - Prob. 23ECh. 4 - Prob. 1PSACh. 4 - Prob. 2PSACh. 4 - Prob. 3PSACh. 4 - Prob. 4PSACh. 4 - Prob. 5PSACh. 4 - Prob. 6PSACh. 4 - Prob. 1PSBCh. 4 - Prob. 2PSBCh. 4 - Prob. 3PSBCh. 4 - Prob. 4PSBCh. 4 - Prob. 5PSBCh. 4 - Problem 4-6BB preparing a work sheet for a...Ch. 4 - Prob. 4SPCh. 4 - Prob. 1GLPCh. 4 - The General Ledger tool in connect several of the...Ch. 4 - Prob. 3GLPCh. 4 - Prob. 1BTNCh. 4 - Prob. 2BTNCh. 4 - Prob. 3BTNCh. 4 - COMMUNICATING IN PRACTICE C2 P3 P5 BTN 4-4 You are...Ch. 4 - Prob. 5BTNCh. 4 - TEAMWORK IN ACTION C1 C2 BTN 4-6 Official Brands’s...Ch. 4 - Prob. 7BTNCh. 4 - Prob. 8BTNCh. 4 - Prob. 9BTN
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- Appendix Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1,20Y7 380,000 Inventory, April 30,20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30. 20Y8, using the periodic inventory system. b. Determine the gross profit to be-reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventors-system?arrow_forwardSales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.arrow_forwardProblem 8 OPERATING AND CASH CONVERSION CYCLES. Consider the following selected financial data for the Cloud 9 Retailer: Beginning Item $5.000 Ending Inventory 1.600 $7.000 Accounts receivable 2.700 2.400 Accounts payable Net credit sales $50,000 4,800 Cost of goods sold 30.000 Requirement: Calculate the operating and cash conversion cyclesarrow_forward
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