Question 1 and 2, Please :) PROBLEM 1The following were taken from the accounts of Delta Hardware, a smallretail business:SalesP253,0008,000134,000Sales Returns and AllowancesMerchandise inventory, January 1Purchases126,000Purchase returns and allowances4,0003,0008,50010,000Merchandise inventory, December 31Purchase discountsFreight InSales discount80,000Compute fora. Net Salesb. Net Purchasesc. Gross profitPROBLEM 2Tysen Retailers purchased merchandise with a list price of P90,000, subjectto trade discounts of 20% and another 10%, with no cash discountsallowable. Tysen should record the cost of this merchandise as?PROBLEM 3On June 1, 2020, Univ Corp. sold merchandise with a list price of P30,000to University on account. Univ allowed trade discounts of 30% and 20%.Credit terms were 2/15, n/40 and the sale was made f.o.b. shippingpoint. Univ prepaid P600 of delivery costs for University as anaccommodation. On June 12, 2020, Univ received from University aremittance in full payment amounting to?PROBLEM 4Dial Corp.'s accounts payable at December 31, 2020, totaled P800,000before any necessary year-end adjustments relating to the followingtransactions:• On December 28, 2020, Dial purchased and received goods forP200,000, terms 2/10, n/30. Dial records purchases and accountspayable at gross amounts. The invoice was recorded and paidJanuary 3, 2021.

This question belongs to the final accounts. In which we have to extract net purchases, net sales,…

PROBLEM 1 The following were taken from the accounts of Delta Hardware, a small retail business: Sales P253,000 Sales Returns and Allowances 8,000 134,000 Merchandise inventory, January 1 Purchases 126,000 Purchase returns and allowances 4,000 Purchase discounts 3,000 8,500 10,000 Merchandise inventory, December 31 Freight In Sales discount 80,000 Compute for a. Net Sales b. Net Purchases c. Gross profit PROBLEM 2 Tysen Retailers purchased merchandise with a list price of P90,000, subject to trade discounts of 20% and another 10%, with no cash discounts allowable. Tysen should record the cost of this merchandise as?

PROBLEM 1 The following were taken from the accounts of Delta Hardware, a small retail business: Sales P253,000 Sales Returns and Allowances 8,000 134,000 Merchandise inventory, January 1 Purchases 126,000 Purchase returns and allowances 4,000 Purchase discounts 3,000 8,500 10,000 Merchandise inventory, December 31 Freight In Sales discount 80,000 Compute for a. Net Sales b. Net Purchases c. Gross profit PROBLEM 2 Tysen Retailers purchased merchandise with a list price of P90,000, subject to trade discounts of 20% and another 10%, with no cash discounts allowable. Tysen should record the cost of this merchandise as?

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 34E

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Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

Question 1 and 2, Please :)

PROBLEM 1
The following were taken from the accounts of Delta Hardware, a small
retail business:
Sales
P253,000
8,000
134,000
Sales Returns and Allowances
Merchandise inventory, January 1
Purchases
126,000
Purchase returns and allowances
4,000
3,000
8,500
10,000
Merchandise inventory, December 31
Purchase discounts
Freight In
Sales discount
80,000
Compute for
a. Net Sales
b. Net Purchases
c. Gross profit
PROBLEM 2
Tysen Retailers purchased merchandise with a list price of P90,000, subject
to trade discounts of 20% and another 10%, with no cash discounts
allowable. Tysen should record the cost of this merchandise as?
PROBLEM 3
On June 1, 2020, Univ Corp. sold merchandise with a list price of P30,000
to University on account. Univ allowed trade discounts of 30% and 20%.
Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping
point. Univ prepaid P600 of delivery costs for University as an
accommodation. On June 12, 2020, Univ received from University a
remittance in full payment amounting to?
PROBLEM 4
Dial Corp.'s accounts payable at December 31, 2020, totaled P800,000
before any necessary year-end adjustments relating to the following
transactions:
• On December 28, 2020, Dial purchased and received goods for
P200,000, terms 2/10, n/30. Dial records purchases and accounts
payable at gross amounts. The invoice was recorded and paid
January 3, 2021.

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Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: May 1. Paid rent for May, 5,000. 3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, 36,000. 4. Paid freight on purchase of May 3, 600. 6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, 68,500. The cost of the merchandise sold was 41,000. 7. Received 22,300 cash from Halstad Co. on account. 10. Sold merchandise for cash, 54,000. The cost of the merchandise sold was 32,000. 13. Paid for merchandise purchased on May 3. 15. Paid advertising expense for last half of May, 11,000. 16. Received cash from sale of May 6. 19. Purchased merchandise for cash, 18,700. 19. Paid 33,450 to Buttons Co. on account. 20. Paid Korman Co. a cash refund of 13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was 13,500 and the cost of the returned merchandise was 8,000. Record the following transactions on Page 21 of the journal: 20. Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, 110,000. The cost of the merchandise sold was 70,000. 21. For the convenience of Crescent Co., paid freight on sale of May 20, 2,300. 21. Received 42,900 cash from Gee Co. on account. May 21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, 88,000. 24. Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for 5,000. 26. Refunded cash on sales made for cash, 7,500. The cost of the merchandise returned was 4,800. 28. Paid sales salaries of 56,000 and office salaries of 29, 000. 29. Purchased store supplies for cash, 2,400. 30. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, 78,750. The cost of the merchandise sold was 47,000. 30. Received cash from sale of May 20 plus freight paid on May 21. 31. Paid for purchase of May 21, less return of May 24. Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). f. The adjustment for customer returns and allowances is 60,000 for sales and 35,000 for cost of merchandise sold. 5. (Optional) Enter the unadjusted trial balance on a IO-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.
Continuing problem Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account Balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: 110 Cash 83,600 112 Accounts Receivable 233,900 115 Merchandise Inventory 624,400 116 Estimated Returns Inventory 28,000 117 Prepaid Insurance 16,800 118 Store Supplies 11,400 123 Store Equipment 569,500 124 Accumulated DepreciationStore Equipment 56,700 210 Accounts Payable 96,600 211 Salaries Payable 212 Customers Refunds Payable 50,000 310 Common Stock 100,000 311 Retained Earnings 585,300 312 Dividends 135,000 313 Income Summary 410 Sales 5,069,000 510 Cost of Merchandise Sold 2,823,000 520 Sales Salaries Expense 664,800 521 Advertising Expense 281,000 522 Depreciation Expense 523 Store Supplies Expense 529 Miscellaneous Selling Expense 12,600 530 Office Salaries Expense 382,100 531 Rent Expense 83,700 532 Insurance Expense 539 Miscellaneous Administrative Expense 7,800 During May, the last month of the fiscal year, the following transactions were completed: May 1. Paid rent for May, 5,000. 3. Purchased merchandise on account from Martin Co. terms 2/10t n/30, FOB shipping point, 36,000. 4. Paid freight on purchase of May 3, 600. 6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, 68,500. The cost of the merchandise sold was 41,000. 7. Received 22,300 cash from Halstad Co. on account. 10. Sold merchandise for cash, 54,000. The cost of the merchandise sold was 32,000. 13. Paid for merchandise purchased on May 3- 15. Paid advertising expense for last half of May, 11,000. 16. Received cash from sale of May 6. 19. Purchased merchandise for cash, 18,700. 19. Paid 33,450 to Buttons Co. on account 20. Paid Korman Co. a cash refund of 13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was 13,500 and the cost of the returned merchandise was 8,000. Record the following transactions on Page 21 of the journal: 20. Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, 110,000. The cost of the merchandise sold was 70,000. 21. For the convenience of Crescent Co., paid freight on sale of May 20. 2,300. 21. Received 42,900 cash from Gee Co. on account. May 21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination. 88,000. 24. Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for 5,000. 26. Refunded cash on sales made for cash. 7,500. The cost of the merchandise returned was 4,800. 28. Paid sales salaries of 56,000 and office salaries of 29,000. 29. Purchased store supplies for cash, 2,400. 30. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, 78,750. The cost of the merchandise sold was 47,000. 30. Received cash from sale of May 20 plus freight paid on May 21. 31. Paid for purchase of May 21. less return of May 24. Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). a. Merchandise inventory on May 31 570,000 b. Insurance expired during the year 12,000 c. Store supplies on hand on May 31 4,000 d. Depreciation for the current year 14,000 e. Accrued salaries on May 31: Sales salaries 7,000 Office salaries 6,600 13,600 f. The adjustment for customer returns and allowances is 60,000 for sales and 35,000 for cost of merchandise sold. 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
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