College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 12, Problem 1PB
A partial work sheet for McKnight Music Store is presented here. The merchandise inventory at the beginning of the fiscal period was $48,473. W. J. McKnight, the owner, withdrew $40,000 during the year.
Required
- 1. Prepare an income statement.
- 2. Journalize the closing entries.
Check Figure
Cost of Goods Sold, $192,521
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Patricia Flynn owns a business called Patty's Place. The company uses a periodic inventory system. The beginning inventory balance was $31,000. A physical count determined her ending inventory was $25,000. Based on past experience, Patricia estimates that $3,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $900. Which of the following journal entries would record the ending inventory?
a.Debit Income Summary for $25,000 and credit Merchandise Inventory for $25,000
b.Debit Income Summary for $6,000 and credit Merchandise Inventory for $6,000
c.Debit Merchandise Inventory for $6,000 and credit Cost of Goods Sold for $6,000
d.Debit Merchandise Inventory for $25,000 and credit Income Summary for $25,000
At the beginning of the year, Snaplt had $11,800 of inventory. During the year, Snaplt purchased $38,600 of merchandise and sold
$32,700 of merchandise. A physical count of inventory at year-end shows $12,800 of inventory exists. Prepare the entry to record
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View transaction list
Journal entry worksheet
<
1
Record the inventory shrinkage.
Note: Enter debits before credits.
Date
December
31
General Journal
Debit
Credit
Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $268,000. Purchases of
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Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry
required" In the first account fleld.)
View transaction list
Journal entry worksheet
< 1 2 3
Record the merchandise purchased on account for $850,000.
Note: Enter debits before credits.
Transaction
1
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Chapter 12 Solutions
College Accounting (Book Only): A Career Approach
Ch. 12 - What is the term used for the profit on a sale...Ch. 12 - Which of the following is not an example of a...Ch. 12 - Prob. 3QYCh. 12 - What is the third entry of the closing procedure...Ch. 12 - What general journal entry is used to undo a...Ch. 12 - Prob. 1DQCh. 12 - What is the difference between the cost of goods...Ch. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Explain the calculation of net sales and net...Ch. 12 - Prob. 7DQCh. 12 - What are the rules for recognizing whether an...Ch. 12 - Prob. 9DQCh. 12 - Calculate the missing items in the following:Ch. 12 - Using the following information, prepare the Cost...Ch. 12 - Identify each of the following items relating to...Ch. 12 - The Income Statement columns of the August 31...Ch. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - From the following T accounts, journalize the...Ch. 12 - From the following information, journalize the...Ch. 12 - A partial work sheet for The Fan Shop is presented...Ch. 12 - Prob. 2PACh. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - A partial work sheet for McKnight Music Store is...Ch. 12 - Here is the partial work sheet for Meyer Mountain...Ch. 12 - The following partial work sheet covers the...Ch. 12 - The following accounts appear in the ledger of...Ch. 12 - Costco is the largest chain of membership...Ch. 12 - A music store sells new instruments. The store...Ch. 12 - You are an owner/bookkeeper in a country whose...Ch. 12 - Prob. 4ACh. 12 - Prob. 5ACh. 12 - It is now August 31. You have journalized and...
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