Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be 150 unit.

                                          Purchases

                       Units                         Unit Cost

3/1       Beginning inventory            150        $40

3/3       Purchase            50          $50

3/10     Purchase            250        $55

3/30     Purchase            100        $65

Instruction

(a)    Using the FIFO assumption, calculate the amount charged to cost of goods sold for April. (Show computations)

(b)    Using the weighted average method, calculate the amount assigned to the inventory on hand on April 30. (Show computations)

(c)    Using the LIFO assumption, calculate the amount assigned to the inventory on hand on April 30. (Show computations)

Question 4 :

Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.

Instructions:

Determine the a) cost of goods sold and b)Gross profit ( show computations )

Question 5 :

Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000 shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of operations, the retained earnings balance was $75,000. During 2019, the company had the following stock transactions.

Jan.   7       Issued 100,000 shares of common stock at $14 per share.

May. 5 Attorneys for the company accepted 200 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $3,200.

June 1       Issued 10,000 share of preferred a stock at $100 per share.

July 4       Issued 10,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Olio Corporation's common stock has been actively traded on the stock exchange at $19 per share at the time of the exchange.

Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share.

Oct.   2      Sold 2,000 shares of the treasury stock at $21 per share.

Oct. 15      Sold 3,000 shares of the treasury stock at $18 per share.

Nov. 1       A cash dividends of $0.25 per share was declared to stockholders of

                                    record on November 15.

Dec. 1            Paid the cash dividends.

Dec.5             A 5% stock dividends was declared. The market price at the

                                    declaration date was $6 per share.

Dec. 30 Distributed the stock dividends shares.

Required: Journalize the 2019 transactions for Olio Corporation.

Question Six:

The following accounts appear in the ledger of Alico Corporation after the books are closed at December 31, 2019.

Common Stock, $2 par value, 700,000 shares authorized, 400,000 shares

issued …………………………………………………………………………$800,000

Paid-in Capital in Excess of Par Value—Common Stock ………………….....650,000

Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 2,000 shares

issued …………………………………………………………………………..200,000

Retained Earnings ……………………………………………………………..900,000

Treasury Stock (10,000 common shares) ………………………………………85,000

Paid-in Capital in Excess of Par Value—Preferred Stock …………………….310,000

Required: Prepare the stockholders' equity section at December 31, 2019.

Question 7 :

Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 200,000 shares of $5 par value common stock. At December 31, the company declared the following cash dividends:

December            2017                $80,000

December            2018                195,000

December            2019                300,000

Required:

Show the allocation of dividends to each class of stock, assuming that the

         preferred stock is 9% and not cumulative.

Show the allocation of dividends to each class of stock, assuming that the

         preferred stock is 10% and cumulative.

Question 8 :

On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated January 1, 2019, at 104. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end.

Instructions:

Prepare the journal entries to record the following:

The issuance of bonds on January 1, 2019

The payment of interest and the discount (or premium) amortization on July 1, 2019.

The accrual of interest and the discount (or premium) amortization on December 31, 2019.

The payment of interest

Name: Seif Company sells many products. chairs is one of its popular items.
Uploaded: 2024-03-20T06:32:37.000Z
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Description: Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be

Question

Seif Company sells many products. chairs is one of its popular items. Below is an analysis of the inventory purchases and sales of chairs for the month of April. Seif’s Company uses the periodic inventory system. Ending Inventory is determined to be 150 unit.

Purchases

Units Unit Cost

3/1 Beginning inventory 150 $40

3/3 Purchase 50 $50

3/10 Purchase 250 $55

3/30 Purchase 100 $65

Instruction

(a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for April. (Show computations)

(b) Using the weighted average method, calculate the amount assigned to the inventory on hand on April 30. (Show computations)

(c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on April 30. (Show computations)

Question 4 :

Assume that Swann Company uses a periodic inventory system and has these account balances: Purchases $630,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-In $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.

Instructions:

Determine the a) cost of goods sold and b)Gross profit ( show computations )

Question 5 :

Olio Corporation is authorized to issue 800,000 shares of $5 par value common stock, and 100,000 shares of 8%, $60 par value preferred stock. On January 1, 2019, the second year of operations, the retained earnings balance was $75,000. During 2019, the company had the following stock transactions.

Jan. 7 Issued 100,000 shares of common stock at $14 per share.

May. 5 Attorneys for the company accepted 200 shares of common stock as payment for legal services rendered. The legal services are estimated to have a value of $3,200.

June 1 Issued 10,000 share of preferred a stock at $100 per share.

July 4 Issued 10,000 shares of common stock in exchange for a building. The building was advertised for $200,000. Olio Corporation's common stock has been actively traded on the stock exchange at $19 per share at the time of the exchange.

Sept. 1 Purchased 7,000 shares of common stock for the treasury at $20 per share.

Oct. 2 Sold 2,000 shares of the treasury stock at $21 per share.

Oct. 15 Sold 3,000 shares of the treasury stock at $18 per share.

Nov. 1 A cash dividends of $0.25 per share was declared to stockholders of

record on November 15.

Dec. 1 Paid the cash dividends.

Dec.5 A 5% stock dividends was declared. The market price at the

declaration date was $6 per share.

Dec. 30 Distributed the stock dividends shares.

Required: Journalize the 2019 transactions for Olio Corporation.

Question Six:

The following accounts appear in the ledger of Alico Corporation after the books are closed at December 31, 2019.

Common Stock, $2 par value, 700,000 shares authorized, 400,000 shares

issued …………………………………………………………………………$800,000

Paid-in Capital in Excess of Par Value—Common Stock ………………….....650,000

Preferred Stock, $100 par value, 8%, 10,000 shares authorized; 2,000 shares

issued …………………………………………………………………………..200,000

Retained Earnings ……………………………………………………………..900,000

Treasury Stock (10,000 common shares) ………………………………………85,000

Paid-in Capital in Excess of Par Value—Preferred Stock …………………….310,000

Required: Prepare the stockholders' equity section at December 31, 2019.

Question 7 :

Adham Corporation was organized on January 1, 2019. During its first year, the corporation issued 40,000 shares of $50 par value preferred stock and 200,000 shares of $5 par value common stock. At December 31, the company declared the following cash dividends:

December 2017 $80,000

December 2018 195,000

December 2019 300,000

Required:

Show the allocation of dividends to each class of stock, assuming that the

preferred stock is 9% and not cumulative.

Show the allocation of dividends to each class of stock, assuming that the

preferred stock is 10% and cumulative.

Question 8 :

On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated January 1, 2019, at 104. The bonds pay semi-annual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a December 31, year end.

Instructions:

Prepare the journal entries to record the following:

The issuance of bonds on January 1, 2019
The payment of interest and the discount (or premium) amortization on July 1, 2019.
The accrual of interest and the discount (or premium) amortization on December 31, 2019.
The payment of interest

Accepted Answer

Hi student
Since there are multiple questions, we will answer only first question.