SANCHEZ MARKETING Trial Balance August 31, 2018 Account Title Cash Accounts Receivable Office Supplies Equipment Accounts Payable Notes Payable Ken Sanchez, Capital Ken Sanchez, Drawing Sales Sales Returns and Allowances Sales Discount Purchases Purchase Returns and Allowances Purchase Discount Freight In Freight Out Advertising Expense Rent Expense Salaries Expense Utilities Expense Totals *Inventory End - P 10,000 Debit P 50,290 13,500 500 9,000 1,000 700 324 33,900 500 400 1,000 2,500 2,000 600 P 116,214 Credit P 2,300 25,000 40,000 48,100 600 214 P 116,214

SANCHEZ MARKETING Trial Balance August 31, 2018 Account Title Cash Accounts Receivable Office Supplies Equipment Accounts Payable Notes Payable Ken Sanchez, Capital Ken Sanchez, Drawing Sales Sales Returns and Allowances Sales Discount Purchases Purchase Returns and Allowances Purchase Discount Freight In Freight Out Advertising Expense Rent Expense Salaries Expense Utilities Expense Totals *Inventory End - P 10,000 Debit P 50,290 13,500 500 9,000 1,000 700 324 33,900 500 400 1,000 2,500 2,000 600 P 116,214 Credit P 2,300 25,000 40,000 48,100 600 214 P 116,214

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

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Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Defining Chapter Terms Terms and phrases relating to concepts discussed in this chapter along with descriptions of those terms and phrases follow. Match each term, 1 through 15, with the best description a through o. Key Inventory Terms and Phrases Key Inventory Terms and Phrases Description of Terms and Phrases Answerabcdefghijklmno 1. Net realizable value a. Requires retroactive restatement of financial statements Answerabcdefghijklmno 2. Lower-of-cost-or-market b. Method for valuing inventory applying to LIFO and retail methods Answerabcdefghijklmno 3. Allowance to reduce inventory to net realizable value c. Cancellation of additional markup Answerabcdefghijklmno 4. Gross profit method d. Inventory estimation that is not acceptable under GAAP Answerabcdefghijklmno 5. Estimated loss on purchase commitment e. Method that approximates lower-of-cost-or-market Answerabcdefghijklmno 6. Change in inventory method from average to FIFO f. Not usually practical to…
the sales ledger and purchase ledger junta ltd as at 31 may 2020. purchase ledger balances as 1 june 2020 $19,420sales ledger balance as 1 june 2020 $28,227purchase journal $210,416sales journal $305,824returns outwards $1,452returns inwards $3,618cheques paid to suppliers $205,751cash paid to supplier $62cheques ans cash received from customers $287,317discount allowed $4,102discount received $1,721contras against purchase ledger $640 1) Sales ledger control2)Puchase ledger control
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7. Use the following excerpts from Jasper Company’s financial statements and complete the worksheets below to determine cash paid to suppliers for inventory in 2018. From Balance Sheets: Dec. 31, 2018 Dec.31, 2017 Inventory $35,000 $31,000 From Income Statement: 2018 Cost of Goods Sold 175,900 PLEASE NOTE: You are to follow the format shown in the textbook. Step01: Inventory Purchased ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] Step02: Cash paid for Inventory Purchases ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""] ["", "", "", "", ""]…
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erms and phrases relating to concepts discussed in this chapter along with descriptions of those terms and phrases follow. Match each term, 1 through 15, with the best description a through o. Key Inventory Terms and Phrases Key Inventory Terms and Phrases Description of Terms and Phrases Answerabcdefghijklmno 1. Net realizable value a. Requires retroactive restatement of financial statements Answerabcdefghijklmno 2. Lower-of-cost-or-market b. Method for valuing inventory applying to LIFO and retail methods Answerabcdefghijklmno 3. Allowance to reduce inventory to net realizable value c. Cancellation of additional markup Answerabcdefghijklmno 4. Gross profit method d. Inventory estimation that is not acceptable under GAAP Answerabcdefghijklmno 5. Estimated loss on purchase commitment e. Method that approximates lower-of-cost-or-market Answerabcdefghijklmno 6. Change in inventory method from average to FIFO f. Not usually practical to retroactively restate or adjust…
How to compute this problem? Problem:The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break CorporationIncome and Retained Earnings StatementFor the year Ended December 31, 2020Net Sales P1,000,000Cost of Goods Sold:Inventory, Dec. 31, 2019 P250,000Purchases 720,000Total Goods Available P970,000Inventory 220,000 750,000Gross Margin on Sales P 250,000Selling and Administrative (including Depreciation of P20,000) 125,000Net Income before Tax P 125,000Provision for Income Tax 35,000Net Income for the Year P 90,000Retained Earnings, beginning 130,000Total P 220,000Dividends Paid 30,000Retained Earnings, December 31, 2020 P 190,000 Sound Break CorporationBALANCE SHEETDecember 31, 2019 and 2020 ASSETS 2019 2020Current Assets:Cash P 75,000 P 85,000Marketable Securities 25,000 25,000Trade Receivables, net 185,000 245,000Inventory, at cost 250,000 220,000Prepaid Expenses 15,000 10,000Total Current Assets…