P5-37B (L. OBJ. 2, 3) Journalizing purchase and sale nsactions-perpetual inventory [20-25 min] Trisha's Amusements completed the following transactions during November, 2012: Nov 1 Purchased supplies for cash, $730 4 8 Purchased inventory on credit terms of 3/10 net eom, $2,800 Returned half the inventory purchased on November 4. It was not the inventory ordered. Sold goods for cash, $1,500 (cost, $1,000) Sold inventory on credit terms of 2/15, n/45, $9,900 (cost, $5,300) Paid the amount owed on account from November 4, less the return (November 8) and the discount 17 Received defective inventory as a sales return from the November 13 sale, $500. Trisha's cost of the inventory received was $350. 10 13 14 Purchased inventory of $3,400 on account. Payment terms were 2/10 net 30. Paid the net amount owed for the November 18 purchase Received cash in full settlement of the account from the customer who purchased inventory on November 13, less the return and the discount 29 Purchased inventory for cash, $10,000, plus freight charges of $200 18 26 28 Requirement

P5-37B (L. OBJ. 2, 3) Journalizing purchase and sale nsactions-perpetual inventory [20-25 min] Trisha's Amusements completed the following transactions during November, 2012: Nov 1 Purchased supplies for cash, $730 4 8 Purchased inventory on credit terms of 3/10 net eom, $2,800 Returned half the inventory purchased on November 4. It was not the inventory ordered. Sold goods for cash, $1,500 (cost, $1,000) Sold inventory on credit terms of 2/15, n/45, $9,900 (cost, $5,300) Paid the amount owed on account from November 4, less the return (November 8) and the discount 17 Received defective inventory as a sales return from the November 13 sale, $500. Trisha's cost of the inventory received was $350. 10 13 14 Purchased inventory of $3,400 on account. Payment terms were 2/10 net 30. Paid the net amount owed for the November 18 purchase Received cash in full settlement of the account from the customer who purchased inventory on November 13, less the return and the discount 29 Purchased inventory for cash, $10,000, plus freight charges of $200 18 26 28 Requirement

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...

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Purchase-related transactions The following selected transactions were completed by Epic Co. during August of the curr ent year: Aug. 3. Purchased merchandise on account for $33400, terms FOB destination. 2/10. n/30. 9. Issued debit memorandum for $2500 ($2450 net of 2% discount) for merchandise from the August 3 purchase that was damaged in shipment. 10. Purchased merchandise on account, $25,000, terms FOB shipping point, n/com. Paid $600 cash to the freight company for delivery of the merchandise. 13. Paid for invoice of August 3, less debit memorandum of August 9 31. Paid for invoice of August 10. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Epic Co. Identify each transaction by date.
Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.
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Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
E5-4 On June 10, Diaz Company purchased $8,000 of merchandise from Taylor Company, FOB shipping point, terms 2/10, n/30. Diaz pays the freight costs of $400 on June 11. Dam- aged goods totaling $300 are returned to Taylor for credit on June 12. The fair value of these goods is $70. On June 19, Diaz pays Taylor Company in full, less the purchase dis- count. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Diaz Company. (b) Prepare separate entries for each transaction for Taylor Company. The merchandise purchased by Diaz on June 10 had cost Taylor $4,800. E5-5 Presented below are transactions related to R. Humphrey Company. 1. On December 3, R. Humphrey Company sold $570,000 of merchandise to Frazier Co., terms 1/10, n/30, FOB destination. R. Humphrey paid $400 for freight charges. The cost of the merchandise sold was $350,000. 2. On December 8, Frazier Co. was granted an allowance of $20,000 for merchandise…
Accounting Abacus Ltd undertook the following transactions during May 2022. May. 1 Purchased $18,480 inventory; terms 1/10, n/30. 8 Returned $1,980 of the inventory purchased on May 1. 16 Sold inventory on credit for $8,745. Cost of the inventory sold was $5,700. Required: a) Prepare the journal entries to record the transactions using periodic inventory system. GST apply, and assuming that all the prices are GST inclusive. b) Prepare the journal entries to record the 8th and 16th transactions using perpetual inventory system. Ignore GST.
During July 2022, the following transactions and events occurred for Alpha Juliet Charlie Ltd who uses a periodic inventory system and is registered for GST. All transactions are GST Inclusive. Date Transaction 3/7/2022 Purchased $3,850 of inventory; terms 2/10, n/60. 6/7/2022 Returned $550 of the inventory purchased on July 3 12/7/2022 Paid for the goods purchased on July 3. 13/7/2022 Sold goods on credit for $6,490; terms 3/10, n/30. 31/7/2022 Received payment from the customer of July 13. Required: Prepare the journal entries
Paul Corporation uses FIFO and reports the following inventory information: Cost NRV December 31, 2019 $312,000 $298,000 Required: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
A company uses the first-in-first-out (FIFO) method of valuing inventory and makes the following purchases and issues of Material M. Date1 July – purchase8 July – purchase12 July – purchase22 July – issue 950 30 July – issue 400Units Value £ 400 940 750 1,875 700 1,680 The inventory valuation of Material M on July 31 is:A. £1,190B. £1,200C. £1,215D. £1,225 what's the answer
The December 31, 2018, year-end inventory balance of the Raymond Corporation is $210,000. You have beenasked to review the following transactions to determine if they have been correctly recorded.1. Goods shipped to Raymond f.o.b. destination on December 26, 2018, were received on January 2, 2019. Theinvoice cost of $30,000 is included in the preliminary inventory balance.2. At year-end, Raymond held $14,000 of merchandise on consignment from the Harrison Company. This merchandise is included in the preliminary inventory balance.3. On December 29, merchandise costing $6,000 was shipped to a customer f.o.b. shipping point and arrivedat the customer’s location on January 3, 2019. The merchandise is not included in the preliminary inventorybalance.4. At year-end, Raymond had merchandise costing $15,000 on consignment with the Joclyn Corporation. Themerchandise is not included in the preliminary inventory balance.Required:Determine the correct inventory amount to be reported in Raymond’s…
P8-4 (Comute FIFO , LIFO , and Average-Cost) Hull Company's record of transactions concering part X for the month of April was as follows. Purchases Sales April 1 (balance on hand) 100 @ $5.00 April 5 300 4 400 @ 5.10 12 200 11 300 @ 5.30 27 800 18 200 @ 5.35 28 150 26 600 @ 5.60 30 200 @ 5.80 Comute the inventory at April 30 on each of the following bases. Assume that perpetual inventory records are kept in units onlt. Carry unit costs to the nearest cent . 1)FIFO)2)LIFO2 3)Average cost B) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal , what amount would be shown as ending inventory in (1) , (2), (3) above ? (Carry average unit costs to four decimal places.).