FINANCIAL+MANG.-W/ACCESS PRACTICE SET
13th Edition
ISBN: 9781337575614
Author: WARREN
Publisher: CENGAGE L
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Textbook Question
Chapter 5, Problem 5.10APR
Periodic inventory accounts, multiple-step income statement, closing entries On December 31, 2016, the balances of the accounts appearing in the ledger of Wyman Company are as follows:
Cash | 5,13,500 |
Accounts Receivable | 72,000 |
Merchandise Inventory, January 1,2016 | 257,000 |
Office Supplies | 3,000 |
Prepaid Insurance | 4,500 |
Land | 150,000 |
Store Equipment | 270,000 |
Accumulated |
55,900 |
Office Equipment | 78,500 |
Accumulated Depreciation—Office Equipment | 16,000 |
Accounts Payable | 27,800 |
Salaries Payable | 3,000 |
Unearned Rent | 8,300 |
Notes Payable | 50,000 |
Common Stock | 150,000 |
430,500 | |
Dividends | 25,000 |
Sales | 3,280,000 |
Purchases | $2,650,000 |
Purchases Returns and Allowances | 93,000 |
Purchases Discounts | 37,000 |
Freight In | 48,000 |
Sales Salaries Expense | 300,000 |
Advertising Expense | 45,000 |
Delivery Expense | 9,000 |
Depreciation Expense—Store Equipment | 6,000 |
Miscellaneous Selling Expense | 12,000 |
Office Salaries Expense | 175,000 |
Rent Expense | 28,000 |
Insurance Expense | 3,000 |
Office Supplies Expense | 2,000 |
Depreciation Expense—Office Equipment | 1,500 |
Miscellaneous Administrative Expense | 3,500 |
Rent Revenue | 7,000 |
Interest Expense | 2,000 |
Instructions
- 1. Does Wyman Company use a periodic or perpetual inventory system? Explain.
- 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2016. The merchandise inventory as of December 31, 2016, was $305,000.
- 3. Prepare the closing entries for Wyman Company as of December 31, 2016.
- 4. What would lie the net income if the perpetual inventory’ system had been used?
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On November 1, 2025, Kingbird Inc. had the following account balances. The company uses the perpetual inventory method.
Debit
Credit
Accounts Receivable
6,272
Accounts Payable
9,520
Supplies
2.408
Unearned Service Revenue
11.200
Equipment
70.000
Salaries and Wages Payable
4.760
Common Stock
56,000
Total
$103.880
Retained Earnings
19.600
Total
$103,880
During November, the following summary transactions were completed.
Nov.8 Paid $9,940 for salaries due employees, of which $5,180 is for November and $4,760 is for October.
10. Received $5,320 cash from customers in payment of account.
11. Purchased merchandise on account from Dimas Discount Supply for $22,400, terms 2/10, n/30.
12. Sold merchandise on account for $15,400, terms 2/10, n/30. The cost of the merchandise sold was $11,200.
15. Received credit from Dimas Discount…
Select account balances from the December 31, 2015, trial balances of the Gracy Companyare listed below:Debit CreditInventory, January 1, 2015 $12,500Purchases 25,000Salaries Expense 5,000Rent Expense 3,250General and Administrative Expenses 2,500Sales $61,000Dividends Declared 3,500In addition, the following information is available:- The cost of the ending inventory at December 31, 2015, is $7,50-UVI Online ACC 3010 Mid-term Assessment 2- $890 of salaries has accrued of December 31.- On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase wasdebited to Prepaid Insurance.- On December 1, the company paid 2 months’ rent in advance. The $1,400 payment wasdebited to Rent Expense.- In December, a customer paid $1,000 in advance for merchandise that will be shipped byGracy in 2016. The amount received was credited to Sales.- Gracey estimates its bad dets to be 1% of sales (after all adjustments)- The insurance tax rate is 30%.Gracy Company uses a periodic inventory…
Inventory at the beginning of the year cost $13,900. During the year, the
company purchased (on account) inventory costing $86,500. Inventory that had cost $82,500 was
sold on account for $97,000.
Required:
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b. What was the amount of gross profit?
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Debit
Credit
Account
Chapter 5 Solutions
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using .MasterCard and...Ch. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Prob. 10DQ
Ch. 5 - Prob. 5.1APECh. 5 - Gross profit During the current year, merchandise...Ch. 5 - Prob. 5.2APECh. 5 - Purchases transactions Hoffman Company purchased...Ch. 5 - Prob. 5.3APECh. 5 - Prob. 5.3BPECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Prob. 5.5APECh. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Prob. 5.6APECh. 5 - Inventory shrinkage Hahn Flooring Company's...Ch. 5 - Ratio of safes to assets Financial statement data...Ch. 5 - Prob. 5.7BPECh. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of merchandise sold For a recent...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Prob. 5.5EXCh. 5 - Prob. 5.6EXCh. 5 - Prob. 5.7EXCh. 5 - Prob. 5.8EXCh. 5 - Prob. 5.9EXCh. 5 - Prob. 5.10EXCh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 5.12EXCh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 5.16EXCh. 5 - Prob. 5.17EXCh. 5 - Prob. 5.18EXCh. 5 - Normal balances of merchandise accounts What is...Ch. 5 - Prob. 5.20EXCh. 5 - Income statement for merchandiser The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On October 31,...Ch. 5 - Prob. 5.24EXCh. 5 - Prob. 5.25EXCh. 5 - Adjusting entry for merchandise inventory...Ch. 5 - Prob. 5.27EXCh. 5 - Prob. 5.28EXCh. 5 - Prob. 5.29EXCh. 5 - Prob. 5.30EXCh. 5 - Prob. 5.31EXCh. 5 - Prob. 5.32EXCh. 5 - Prob. 5.33EXCh. 5 - Prob. 5.34EXCh. 5 - Cost of merchandise sold and related items The...Ch. 5 - Cost of merchandise sold Based on the following...Ch. 5 - Prob. 5.37EXCh. 5 - Prob. 5.38EXCh. 5 - Prob. 5.39EXCh. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple step income statement and report form of...Ch. 5 - Prob. 5.6APRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Periodic inventory accounts, multiple-step income...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple-step income statement and report form of...Ch. 5 - Prob. 5.6BPRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Prob. 5.8BPRCh. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Prob. 5.10BPRCh. 5 - Continuing problem Palisade Creek Co. is a...Ch. 5 - Prob. 5.1CPCh. 5 - Prob. 5.2CPCh. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CP
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