Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 7, Problem E7.21E
Posting from the purchases journal; balancing the ledgers
Learning Objective 3
Merchandise Inventory DR column total $2,300
The purchases journal of Southeastern Publishing Company follows:
| Purchases journal | |||||||||
| Other Account DR | |||||||||
| Date | Vender Account Credited | Terms | Post. Ref. | Accounts Payable CR | Merchandise Inventory DR | Office Supplies DR | Account title | Post, Ref. | Amount |
| 2018 | |||||||||
| Sep. 2 | Leap Tech | n/30 | 830 | 830 | |||||
| 5 | Jell Supply | n/30 | 155 | 155 | |||||
| 13 | Leap Tech | /10, n/30 |
1,470 | ||||||
| 26 | Fallon Equipment | n/30 | 880 | Equipment | 880 | ||||
| Sep. 30 | total | ||||||||
Requirements
- Total each column of the purchases journal.
2. Open four-column ledger accounts for Merchandise Inventory (118), Office Supplies (120),
Equipment (150), and Accounts Payable (211). Post to these accounts from the purchases
journal. Use dates and posting references in the accounts.
3. Open four-column accounts in the accounts payable subsidiary ledger for Fallon Equipment, Jell
Supply, and Leap Tech. Post from the purchases journal. Use dates and posting references in
the ledger accounts.
4. Balance the Accounts Payable control account in the general ledger with the total of the ending
balances in the accounts payable subsidiary ledger.
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Inventory Analysis
A company reports the following:
Cost of merchandise sold $558,000
Average inventory
45,000
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final
answers to one decimal place. Assume 365 days a year.
a. Inventory turnover
b. Number of days' sales in inventory
days
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Learning Objectives 2, 3
1. COGS $2,140
⠀⠀⠀
Assume that AB Tire Store completed the following perpetual inventory
transactions for a line of tires:
May 1 Beginning merchandise inventory
11
Purchase
23 Sale
26 Purchase
29 Sale
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16 tires @ $65 each
363/ 1480
10 tires @ $78 each
12 tires @ $88 each
14 tires @ $ 80 each
Requirements
1. Compute cost of goods sold and gross profit using the FIFO inventory
costing method.
18 tires @ $ 88 each
5G 70%
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2. Compute cost of goods sold and gross profit using the LIFO inventory
costing method.
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Oct. 1
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13
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Perpetual Inventory Using Weighted Average
Beginning inventory, purchases, and sales for WCS12 are as follows:
units at $11
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Sale
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Inventory
Sale
Purchase
190 units
370 units at $12
200 units
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a. Assuming a perpetual inventory system and using the weighted average method, determine the weighted average unit cost after the October 22 purchase. Round your
answer to two decimal places.
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per unit
b. Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29. Round your "average unit cost to
two decimal places.
All work saved.
c. Assuming a perpetual inventory system and using the weighted average method, determine the inventory on October 31. Round your "average unit cost" to two
decimal places.
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Chapter 7 Solutions
Horngren's Accounting (12th Edition)
Ch. 7 - Which of the following benefits of an effective...Ch. 7 - Prob. 2QCCh. 7 - Which of the following is not a special journal?...Ch. 7 - Mountain Day Spa sold merchandise inventory on...Ch. 7 - Prob. 5QCCh. 7 - Centex Sound Systems purchased merchandise...Ch. 7 - Every transaction recorded in the cash payments...Ch. 7 - Prob. 8QCCh. 7 - Which is a disadvantage of an enterprise resource...Ch. 7 - Prob. 1RQ
Ch. 7 - Prob. 2RQCh. 7 - Explain the three basic components of an...Ch. 7 - What is a special journal?Ch. 7 - What is the purpose of a subsidiary ledger?Ch. 7 - Prob. 6RQCh. 7 - List the four special journals often used in a...Ch. 7 - Explain the posting process of the sales journal.Ch. 7 - Provide some examples of transactions that would...Ch. 7 - What are the columns that are typically used in...Ch. 7 - Prob. 11RQCh. 7 - When is the general journal used in a manual...Ch. 7 - Explain the two components of a computerized...Ch. 7 - Prob. 14RQCh. 7 - What is an enterprise resource planning (ERP)...Ch. 7 - Prob. 16RQCh. 7 - How would a business record a sale of services on...Ch. 7 - How would a business record a bill received in...Ch. 7 - Prob. S7.1SECh. 7 - Defining components of an accounting information...Ch. 7 - Identifying special journals Learning Objective 2...Ch. 7 - Prob. S7.4SECh. 7 - Posting transactions from a sales journal to a...Ch. 7 - Prob. S7.6SECh. 7 - Posting transactions from a cash receipts journal...Ch. 7 - Recording transactions in a purchases journal...Ch. 7 - Posting transactions from a purchases journal to a...Ch. 7 - Prob. S7.10SECh. 7 - Prob. S7.11SECh. 7 - Prob. S7.12SECh. 7 - Prob. S7.13SECh. 7 - Prob. E7.14ECh. 7 - Prob. E7.15ECh. 7 - Using the sales and cash receipts journals...Ch. 7 - Prob. E7.17ECh. 7 - Prob. E7.18ECh. 7 - Prob. E7.19ECh. 7 - Recording transactions-cash payments journal...Ch. 7 - Posting from the purchases journal; balancing the...Ch. 7 - Identifying transactions in the accounts payable...Ch. 7 - Prob. E7.23ECh. 7 - Prob. P7.24APGACh. 7 - Prob. P7.25APGACh. 7 - Prob. P7.26APGACh. 7 - Prob. P7.27BPGBCh. 7 - Using the purchases, cash payments, and general...Ch. 7 - Using all Journals, posting, and balancing the...Ch. 7 - Continuing Problem P7-3D Using aft journals This...Ch. 7 - Using all journals 2 This problem continues the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Tying It All Together Case Before you begin this...Ch. 7 - Decision Case 7-1 A fire destroyed certain...Ch. 7 - Fraud Case 7-1 Didrikson Rubin, the auditor of Red...
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