Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 5, Problem 5.39EX
To determine
Closing entries: This refers to the
To Record: The closing entries of Company P.
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Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7) during November.
Nov.1 Balance on hand, 50 units, cost $60 each…………………………………….$3,000
Nov.4Purchase, 20 Units, cost $65 each……………………………………………..$1300
Nov.8Sale, 35 units, Sale price $100 each…………………………………………...$3500
Nov.9 Purchase, 40 units, cost $65 each……………………………………………..$2600
Nov.20Sale, 60 units, sale price $100 each…………………………………………..$6000
Nov.25Purchase 40 units, cost $70 each…………………………………….……….$2800
Nov.30Sale 5 units sale price $110 ea
Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7)…
Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7) during November.
Nov.1 Balance on hand, 50 units, cost $60 each…………………………………….$3,000
Nov.4Purchase, 20 Units, cost $65 each……………………………………………..$1300
Nov.8Sale, 35 units, Sale price $100 each…………………………………………...$3500
Nov.9 Purchase, 40 units, cost $65 each……………………………………………..$2600
Nov.20Sale, 60 units, sale price $100 each…………………………………………..$6000
Nov.25Purchase 40 units, cost $70 each…………………………………….……….$2800
Nov.30Sale 5 units sale price $110 each………………………………………...…….$550
Required:
Record the beginning inventory, the purchases, the cost of goods sold, and the running balance on an inventory record card by Using Average Cost Method & LIFO method.
Prepare journal entries to record these purchases and sales in…
Returned defective merchandise with cost $1200 to A B C company from the last monthe purchase ..
that will recorded at ...
a. Cash receipt journal
or
b. General journal
Chapter 5 Solutions
Financial & Managerial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using .MasterCard and...Ch. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Prob. 10DQ
Ch. 5 - Prob. 5.1APECh. 5 - Gross profit During the current year, merchandise...Ch. 5 - Prob. 5.2APECh. 5 - Purchases transactions Hoffman Company purchased...Ch. 5 - Prob. 5.3APECh. 5 - Prob. 5.3BPECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Prob. 5.5APECh. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Prob. 5.6APECh. 5 - Inventory shrinkage Hahn Flooring Company's...Ch. 5 - Ratio of safes to assets Financial statement data...Ch. 5 - Prob. 5.7BPECh. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of merchandise sold For a recent...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Prob. 5.5EXCh. 5 - Prob. 5.6EXCh. 5 - Prob. 5.7EXCh. 5 - Prob. 5.8EXCh. 5 - Prob. 5.9EXCh. 5 - Prob. 5.10EXCh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 5.12EXCh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 5.16EXCh. 5 - Prob. 5.17EXCh. 5 - Prob. 5.18EXCh. 5 - Normal balances of merchandise accounts What is...Ch. 5 - Prob. 5.20EXCh. 5 - Income statement for merchandiser The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On October 31,...Ch. 5 - Prob. 5.24EXCh. 5 - Prob. 5.25EXCh. 5 - Adjusting entry for merchandise inventory...Ch. 5 - Prob. 5.27EXCh. 5 - Prob. 5.28EXCh. 5 - Prob. 5.29EXCh. 5 - Prob. 5.30EXCh. 5 - Prob. 5.31EXCh. 5 - Prob. 5.32EXCh. 5 - Prob. 5.33EXCh. 5 - Prob. 5.34EXCh. 5 - Cost of merchandise sold and related items The...Ch. 5 - Cost of merchandise sold Based on the following...Ch. 5 - Prob. 5.37EXCh. 5 - Prob. 5.38EXCh. 5 - Prob. 5.39EXCh. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple step income statement and report form of...Ch. 5 - Prob. 5.6APRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Periodic inventory accounts, multiple-step income...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple-step income statement and report form of...Ch. 5 - Prob. 5.6BPRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Prob. 5.8BPRCh. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Prob. 5.10BPRCh. 5 - Continuing problem Palisade Creek Co. is a...Ch. 5 - Prob. 5.1CPCh. 5 - Prob. 5.2CPCh. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CP
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- Maria B, Inc. uses a perpetual inventory system. This system includes a perpetual inventory record card for each of the 50 types of the products the company keep in stock. The following transactions show the purchase and sale of particular round table (product code AB-RB7) during November. Nov.1 Balance on hand, 50 units, cost $60 each…………………………………….$3,000 Nov.4Purchase, 20 Units, cost $65 each……………………………………………..$1300 Nov.8Sale, 35 units, Sale price $100 each…………………………………………...$3500 Nov.9 Purchase, 40 units, cost $65 each……………………………………………..$2600 Nov.20Sale, 60 units, sale price $100 each…………………………………………..$6000 Nov.25Purchase 40 units, cost $70 each…………………………………….……….$2800 Nov.30Sale 5 units sale price $110 each………………………………………...…….$550 Required: Record the beginning inventory, the purchases, the cost of goods sold, and the running balance on an inventory record card by Using W.Average Cost Method & LIFO method. Prepare journal entries to record these purchases and sales in…arrow_forwardBlack Hawk, Inc., uses a perpetual inventory system and maintains an inventory record of each type of product in stock. The following transactions show beginning Inventory, purchases, and sales of CT-300, a cellular telephone, for the month of May: May 1 Balance on hand 20 units, cost $40 each.............................$800 May 5 Sale, 8 units, sales price $60 each.......................................$480 May 6 Purchase, 20 unites, cost $45 each......................................$900 May 21 Sale, 10 units, sales price $60 each...................................$600 May 31 Sale, 15 units, safes price $65 each...................................$975 a. Record the beginning inventory, the purchases, the cost of goods sold, and the running balance on an inventory record card like the one illustrated on page 471. Use the first-in, first-out (FIFO) method. b. Prepare general journal entries to record the purchases and sales in May. Assume that all transactions were on account.arrow_forwardMore info Feb. 3 Feb. 7 Feb. 9 Feb. 10 Purchased $2,600 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point from Savvy's Garden. Returned $300 of defective merchandise purchased on February 3. Paid freight bill of $100 on February 3 purchase. Feb. 12 Sold merchandise inventory on account for $4,200 to Trinkett Topiaries. Payment terms were 2/15, n/30. These goods cost the company $2,100. Paid amount owed on credit purchase of February 3, less the return and the discount. Feb. 28 Received cash from Trinkett Topiaries in full settlement of their debt. Print - Donearrow_forward
- Current Attempt in Progress Prepare the necessary journal entries to record the following transactions, assuming Cullumber Company uses a perpetual inventory system. (a) Cullumber sells $57,500 of merchandise, terms 1/10, n/30. The merchandise cost $39,220. (b) The customer in (a) returned $5,300 of merchandise to Cullumber. The merchandise returned cost $3,710. (c) Cullumber received the balance due within the discount period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Transactions Account Titles and Explanation (a) (To record credit sale.) (To record cost of goods sold.) Debit Credit SUarrow_forwardJournalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. A. Purchased $51,300 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice. C. Discovered that merchandise with an invoice amount of $7,300 purchased in (a) was defective and returned items, receiving credit. D. Purchased $6,200 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D). CHART OF ACCOUNTS Lilly Heating & Air Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated…arrow_forwardJournalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. A. Purchased $51,300 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice. C. Discovered that merchandise with an invoice amount of $7,300 purchased in (a) was defective and returned items, receiving credit. D. Purchased $6,200 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D).arrow_forward
- Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At the end of each month, Warton posts the end-of-month totals to the general ledger. July 2 Mary Mack . . . . . . . . . . . . . . . . $ 8,600 8 Eric Horner . . . . . . . . . . . . . . . . 11,100 10 Troy Wilson . . . . . . . . . . . . . . . . 13,400 14 Hong Jiang . . . . . . . . . . . . . . . . 20,500 20 Troy Wilson . . . . . . . . . . . . . . . . 11,200 29 Mary Mack . . . . . . . . . . . . . . . . 7,300 Total credit sales . . . . . . . . . . . . $72,100 1. Open an accounts receivable subsidiary ledger with a T-account for each customer. Post the amounts to the subsidiary ledger. 2. Open an Accounts Receivable controlling T-account and a Sales T-account to reflect general ledger accounts. Post the end-of-month total to these accounts. 3. Prepare a schedule of accounts receivable and prove (confirm) that its total equals the Accounts Receivable controlling account balance.arrow_forwardInstructions a. Sold merchandise on account, $13,100, with terms 2/10, net 30 on December 26. The cost of the goods sold was $8,515. b. Received payment on December 31 within the discount period. Required: Journalize the above merchandise transactions. The company uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardInstructions Journalize entries for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Journal 1 2 3 4 5 A. Purchased $54,200 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice. C. Discovered that merchandise with an invoice amount of $7,000 purchased in (a) was defective and returned items, receiving credit. D. Purchased $6,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D). 6 DATE Dec. 31 Inventory DESCRIPTION JOURNAL POST. REF. DEBITarrow_forward
- Instructions Travis Company purchased merchandise on account from a supplier for $5,900, terms 2/10, net 30 on December 26. Travis Company paid for the merchandise on December 31, within the discount period. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardPrepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. Apr. Apr. Apr. Apr. Apr. 2 Purchased $6,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Paid $280 cash for shipping charges on the April 2 purchase. Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. Apr. 3 4 17 18 Apr. 21 28 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. Purchased $11,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. After negotiations, received from Frist a $600 allowance toward the $11,500 owed on the April 18 purchase. Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.arrow_forwardThe proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be Oa. Jan. 1 Purchases Accounts Receivable 1,600 1,600 Ob. Jan. 1 Merchandise Inventory 1,600 Accounts Payable Oc. Jan. 1 Purchases Accounts Payable Od. Jan. 1 Office Supplies Accounts Payable 1,600 1,600 1,600 1,600 1,600arrow_forward
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