GEN COMBO LOOSELEAF SURVEY OF ACCOUNTING; CONNECT ACCESS CARD

5th Edition

ISBN: 9781260149210

Author: Thomas P Edmonds, Christopher Edmonds, Philip R Olds, Frances M McNair, Bor-Yi Tsay

Publisher: McGraw-Hill Education

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Textbook Question

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Chapter 3, Problem 3E

Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system

Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system.

1. Acquired $30,000 cash from the issue of common stock.

2. Purchased inventory for $18,000 cash.

3. Sold inventory costing $15,000 for $32,000 cash.

Required

a. Record the events in a statements model like the one shown here.

Chapter 3, Problem 3E, Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system Dan Watson

b. Prepare an income statement for 2018 (use the multistep format).

c. What is the amount of total assets at the end of the period?

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Chapter 3, Problem 2E

Chapter 3, Problem 4E

Chapter 3 Solutions

GEN COMBO LOOSELEAF SURVEY OF ACCOUNTING; CONNECT ACCESS CARD

Ch. 3 - 1. Define merchandise inventory. What types of...Ch. 3 - 2. What is the difference between a product cost...Ch. 3 - 3. How is the cost of goods available for sale...Ch. 3 - 4. What portion of cost of goods available for...Ch. 3 - 5. When are period costs expensed? When are...Ch. 3 - 6. If PetCo had net sales of 600,000, goods...Ch. 3 - Prob. 7Q Ch. 3 - 8. What are the effects of the following types of...Ch. 3 - 9. Northern Merchandising Company sold inventory...Ch. 3 - 10. If goods are shipped FOB shipping point, which...

Ch. 3 - 11. Define transportation-in. Is it a product or a...Ch. 3 - Prob. 12Q Ch. 3 - Prob. 13Q Ch. 3 - 14. Dyer Department Store purchased goods with the...Ch. 3 - 15. Eastern Discount Stores incurred a 5,000 cash...Ch. 3 - 16. What is the purpose of giving credit terms to...Ch. 3 - Prob. 17Q Ch. 3 - 18. Ball Co. purchased inventory with a list price...Ch. 3 - 22. Explain the difference between purchase...Ch. 3 - Prob. 20Q Ch. 3 - Prob. 21Q Ch. 3 - 25. What is the advantage of using common size...Ch. 3 - 27. What is the purpose of preparing a schedule of...Ch. 3 - 28. Explain how the periodic inventory system...Ch. 3 - Prob. 25Q Ch. 3 - Exercise 3-1 Determining the cost of financing...Ch. 3 - Exercise 3-2 Comparing a merchandising company...Ch. 3 - Exercise 3-3 Effect of inventory transactions on...Ch. 3 - Exercise 3-4 Effect of inventory transactions on...Ch. 3 - Exercise 3-5 Recording inventory transactions in a...Ch. 3 - Exercise 4-6A Understanding the freight terms FOB...Ch. 3 - Exercise 3-7 Effect of purchase returns and...Ch. 3 - Exercise 3-8 Accounting for product costs:...Ch. 3 - Effect of product cost and period cost: Horizontal...Ch. 3 - Cash Discounts and Purchase Returns On April 6,...Ch. 3 - Exercise 4-9A Determining the effect of inventory...Ch. 3 - Inventory financing costs Bill Norman comes to you...Ch. 3 - Effect of shrinkage: Perpetual system Ho Designs...Ch. 3 - Comparing gross margin and gain on sale of land...Ch. 3 - Single-step and multistep income statements The...Ch. 3 - Prob. 16E Ch. 3 - Effect of cash discounts on financial statements:...Ch. 3 - Using common size statements and ratios to make...Ch. 3 - Prob. 19E Ch. 3 - Determining cost of goods sold: Periodic system...Ch. 3 - Identifying product and period costs Required...Ch. 3 - Problem 4-23A Identifying freight costs Required...Ch. 3 - Effect of purchase returns and allowances and...Ch. 3 - Preparing a schedule of cost of goods sold and...Ch. 3 - Prob. 25P Ch. 3 - Comprehensive cycle problem: Perpetual system At...Ch. 3 - Prob. 27P Ch. 3 - Comprehensive cycle problem: Periodic system...Ch. 3 - Prob. 1ATC Ch. 3 - ATC 3-2 Group Exercise Multistep income statement...Ch. 3 - Prob. 3ATC Ch. 3 - Prob. 4ATC

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