Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
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Chapter 5, Problem 8E
Exercise 5-8 Inventory and cost of sales transactions in T-accounts P1 P2
The following summarizes Tesla; s merchandising activities for the year. Setup T-accounts for Merchandise Inventory' and for Cost of Goods Sold. Enter each line item into one of the two T-accounts and compute the T-account balances.
Cost of merchandise sold to customers............................... $196,000
Merchandise inventory, beginning-year............................... 25,000
Cost of merchandise purchases, gross amount........................$192,500
Shrinkage on merchandise as of year-end............................. 800
Cost of transportation-in former chandise pijrchases.................... 2,900
Cost of merchandise retnned by customers and restored to inventory...... 2,100
Discounts received from suppliers on merchandise purchases...........$. 1,70O
Returns toand allowances from suppliers on merchandise purchases...... 4,000
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$0 ric 200 The following summarizes Tesla's merchandising activities for the year. Set up T-accounts for Merchan- dise Inventory and for Cost of Goods Sold. Enter each line item into one or both of the two T-accounts and compute the T-account balances. Cost of merchandise sold to customers.. Merchandise inventory, beginning-of-year.... Merchandise purchases, gross amount Shrinkage on inventory as of year-end.... Transportation-in for merchandise purchases. Cost of merchandise returned by customers (and restored to inventory). Discounts received from suppliers on merchandise purchases Returns to and allowances from suppliers on merchandise purchases $196,000 25,000 192,500 800 2,900 2,100 1,700 4,000 Exercise 5-11 Inventory and cost of sales transactions in T-accounts P1 P2 Check Ending Merch. Inventory, $20,000
QUESTION 7
Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a
a. credit to Sales
b. debit to Accounts Payable
c. debit to Merchandise Inventory
O d. credit to Merchandise Inventory
QUESTION 9
The entry to record the company's cost of selling merchandise under a perpetual inventory system would be a
O debit to Cost of Goods Sold and a credit to Inventory
O debit to Cost of Goods Sold and a credit to Sales
O debit to Accounts Receivable and a credit to Sales
O debit to Inventory and a credit to Cost of Goods Sold.
QUESTION 10
The general ledger is arranged in the
O numerical order of the chart of accounts
O order with normal credit balance accounts first
O order with nomal debit balance accounts first.
alphabetical order of the account names.
QUESTION 11
Differences between when a company records a transaction and when the bank records the same transaction are called "timung" differences
True
False
Chapter 5 Solutions
Fundamental Accounting Principles
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - 5. How does a company that uses a perpetual...Ch. 5 - Prob. 6DQCh. 5 - What is the difference between a sales discount...Ch. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - What is the difference between the single-step and...
Ch. 5 - Prob. 11DQCh. 5 - Prob. 12DQCh. 5 - Prob. 13DQCh. 5 - Refer to the income statement of Samsung in...Ch. 5 - Prob. 15DQCh. 5 - Applying merchandising terms C1 P1 Enter the...Ch. 5 - Identifying inventory costs C2 Costs of $5.000...Ch. 5 - Merchandise accounts and computations C2 Use the...Ch. 5 - Computing net invoice amounts P1 Compute the...Ch. 5 - Recording purchases, returns, and discounts taken...Ch. 5 - Recording purchases and discounts taken P1 Prepare...Ch. 5 - Recording purchases and discounts missed Pl...Ch. 5 - Recording sales, returns, and discounts taken P2...Ch. 5 - Accounting for shrinkage—perpetual system P3...Ch. 5 - Closing entries P3 Refer to QS 5-9 and prepare...Ch. 5 - Multiple-step income statement P4 For each item...Ch. 5 - Preparing a multiple-step income statement P4...Ch. 5 - Exercise 5-13 Physical count error and profits A2...Ch. 5 - Prob. 14QSCh. 5 - Prob. 15QSCh. 5 - Prob. 16QSCh. 5 - Recording purchases, returns, and...Ch. 5 - Recording sales. returns, and discounts—periodic &...Ch. 5 - Prob. 19QSCh. 5 - Prob. 20QSCh. 5 - Prob. 21QSCh. 5 - Prob. 22QSCh. 5 - QS 5-23 Sales transactions P2
Prepare journal...Ch. 5 - Exercise 5-1 Computing revenues, expenses, and...Ch. 5 - Prob. 2ECh. 5 - Exercise 5-3 Recording purchases, purchases...Ch. 5 - Exercise 5-4 Recording sales, sales returns, and...Ch. 5 - Exercise 5.5 Recording purchases, purchases...Ch. 5 - Exercise 5-6 Recording sales, purchases, and cash...Ch. 5 - Exercise 5-7 Recording sales, purchases, shipping,...Ch. 5 - Exercise 5-8 Inventory and cost of sales...Ch. 5 - Exercise 5-9 Recording purchases, sales, returns,...Ch. 5 - Exercise 5-10 Preparing adjusting and closing...Ch. 5 - Prob. 11ECh. 5 - Exercise 5-12 Impacts of inventory error on key...Ch. 5 - Exercise 5-13 Physical count error and profits...Ch. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prob. 21ECh. 5 - Prob. 22ECh. 5 - Prob. 23ECh. 5 - Prob. 24ECh. 5 - Prob. 25ECh. 5 - Problem 5-1A
Preparing journal entries for...Ch. 5 - Problem 5-2A
Preparing journal entries for...Ch. 5 - Problem 5-3A Computing merchandising amounts and...Ch. 5 - Problem 5-4A Preparing closing entries and...Ch. 5 - Prob. 5APSACh. 5 - Problem 5-1 B
Preparing journal entries for...Ch. 5 - Problem 5-2B
Preparing journal entries for...Ch. 5 - Problem 5-3B Computing merchandising amounts and...Ch. 5 - Problem 5-4B Preparing closing entries and...Ch. 5 - Problem 5-5B Preparing adjusting entries and...Ch. 5 - SP 5 Santana Rey created Business Solutions on...Ch. 5 - Prob. 1GLPCh. 5 - Prob. 2GLPCh. 5 - Prob. 3GLPCh. 5 - Prob. 1AACh. 5 - Key comparative figures for Apple and Google...Ch. 5 - Prob. 3AACh. 5 - Prob. 1BTNCh. 5 - Prob. 2BTNCh. 5 - Prob. 3BTNCh. 5 - Prob. 4BTNCh. 5 - Prob. 5BTNCh. 5 - Prob. 6BTN
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- The following data were extracted from the accounting records of Dana Designs for the year ended March 31. Merchandise inventory, April 1 $530,000 Merchandise inventory, March 31 375,000 Purchases 270,000 Purchases returns and allowances 25,000 Purchases discounts 10,000 Sales 770,000 Freight-in 3,000 Prepare the cost of merchandise sold section of the income statement for the year ended March 31, using the periodic method. If an amount is a negative number, use a minus sign to indicate.arrow_forwardChapter 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…arrow_forwardIndependent Assessment 3 Study the given data, then compute for what are asked? Cost of Goods Sold and Merchandise Inventory. The following transactions are assumed to have taken place during the month of July: Purchases: Amount Description units at Php 20.00 units at Php 20.00 units at Php 20.00 units at Php 20.00 units at Php 20.00 July 500 Php 10,000.00 10 800 20 1,000 25 600 Total Php Sales: Amount 12,000.00 Description units at Php 30.00 units at Php 30.00 units at Php 30.00 units at Php 30.00 units at Php 30.00 July 4 400 Php 12 700 1,100 500 24 31 Total Php Summary: Total units purchased: Less: Total units sold Total units remaining unsold, 7/31 Unit cost Total value of merchandise inventory, 7/31 From the above information, the cost of the units sold may be determined as follows: Total units purchased during July Less: total units remaining unsold, 7/31 Total units sold Unit cost Total cost of units sold Php The gross profit maybe computed as follows: Sales (2,700 units at Php…arrow_forward
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