Financial Accounting: Tools For Business Decisionmaking, Eighth Edition Wileyplus Blackboard Card
8th Edition
ISBN: 9781118953839
Author: Kimmel
Publisher: WILEY
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Chapter 5, Problem 5.8AP
(a)
To determine
Gross profit rate is the financial ratio that shows the relationship between the gross profit and net sales. Gross profit is the difference between the total revenues and cost of goods sold. It is calculated by using the following formula:
Profit margin measures the amount of net income earned from each dollar of sales revenue generated by a company. Thus, it shows the relationship between the net income, and net sales. It is calculated by using the following formula:
To Find: The missing amount of cost of goods sold for 2016.
(b)
To determine
To Compute: The gross profit rate and profit margin for each fiscal year.
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Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $268,000. Purchases of
merchandise on account during the year totaled $850,000. Merchandise costing $903,000 was sold on account for $1,430,000.
Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry
required" In the first account fleld.)
View transaction list
Journal entry worksheet
< 1 2 3
Record the merchandise purchased on account for $850,000.
Note: Enter debits before credits.
Transaction
1
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Alpha company is a trading company that purchases and sales fruits and vegetables. During the year 2020, the company shows the following transactions and events:
1) The company uses the perpetual inventory system to account for its inventory at December 31, 2020 and its financial statements are disclosed without delay.
2) The company records sales when cash is received from customers and delay expenses for the next year.
3) For credit purchase transactions, the accountant debit (merchandise inventory) and credit (accounts receivable).
4) The company assumes the freight charges to its customers. The accountant debit (freight in expenses) and credit (merchandise inventory).
5) One customer returned fruits to Alpha that were damaged. The accountant of the company debit (purchase returns) and credit (accounts payable).
6) The cost of goods sold is determined after each sale asfollow: beginning inventory – purchases + ending inventory.
7) Net profit is computed by…
Waterway Inc. is a retailer operating in British Columbia. Waterway uses the perpetual inventory system. All sales returns from
customers result in the goods being returned to inventory; the inventory is not damaged. Assume that there are no credit
transactions; all amounts are settled in cash. You are provided with the following information for Waterway Inc. for the month of
January 2022.
Date
January 1
January 5
January 8
January 10
January 15
January 16
January 20
January 25
(a1)
January 1
January 5
January 8
January 10
January 15
January 16
January 20
Description
January 25
Beginning inventory
Purchase
Sale
Sale return
Purchase
Purchase return
Sale
Purchase
$
$
$
$
$
$
Quantity
100
$
139
Calculate the Moving-average cost per unit at January 1, 5, 8, 10, 15, 16, 20, & 25. (Round moving-average cost per unit answers to 3
decimal places, eg. 5.251.)
Moving-Average Cost per unit
$
111
10
55
5
88
18
Unit Cost or Selling Price
$13
16
27
27
18
18
31
20
Chapter 5 Solutions
Financial Accounting: Tools For Business Decisionmaking, Eighth Edition Wileyplus Blackboard Card
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Waymon Co. has net sales of 100,000, cost of goods...Ch. 5 - Masie Ascot believes revenues from credit sales...Ch. 5 - (a) What is the primary source document for...Ch. 5 - Prob. 8QCh. 5 - As the end of Smyle Companys fiscal year...Ch. 5 - To encourage bookstores to buy a broader range of...
Ch. 5 - Goods costing 1,900 are purchased on account on...Ch. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - Prob. 16QCh. 5 - Prob. 17QCh. 5 - What merchandising account(s) will appear in the...Ch. 5 - What types of businesses are most likely to use a...Ch. 5 - Prob. 20QCh. 5 - In the following cases, use a periodic inventory...Ch. 5 - Prob. 22QCh. 5 - What factors affect a companys gross profit...Ch. 5 - Prob. 24QCh. 5 - Prob. 25QCh. 5 - On July 15, a company purchases on account goods...Ch. 5 - Presented here are the components in Salas...Ch. 5 - Prob. 5.2BECh. 5 - Prob. 5.3BECh. 5 - Prob. 5.4BECh. 5 - Prob. 5.5BECh. 5 - Explain where each of these items would appear on...Ch. 5 - Prob. 5.7BECh. 5 - Prob. 5.8BECh. 5 - Prob. 5.9BECh. 5 - Prob. 5.10BECh. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Prob. 5.13BECh. 5 - Prob. 5.14BECh. 5 - Prob. 5.1DIECh. 5 - Prob. 5.2DIECh. 5 - Prob. 5.3DIECh. 5 - Prob. 5.4DIECh. 5 - Prob. 5.5DIECh. 5 - Prob. 5.6DIECh. 5 - Prob. 5.1ECh. 5 - Assume that on September 1, Office Depot had an...Ch. 5 - Prob. 5.3ECh. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Prob. 5.12ECh. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.1APCh. 5 - Prob. 5.2APCh. 5 - Prob. 5.3APCh. 5 - Prob. 5.4APCh. 5 - Prob. 5.5APCh. 5 - Prob. 5.6APCh. 5 - Prob. 5.7APCh. 5 - Prob. 5.8APCh. 5 - Prob. 5.9APCh. 5 - Prob. 5.1CACRCh. 5 - Prob. 5.2CACRCh. 5 - Prob. 5.1EYCTCh. 5 - Prob. 5.2EYCTCh. 5 - Prob. 5.3EYCTCh. 5 - Prob. 5.4EYCTCh. 5 - Prob. 5.6EYCTCh. 5 - Prob. 5.7EYCTCh. 5 - Prob. 5.8EYCTCh. 5 - Prob. 5.9EYCTCh. 5 - Explain the difference between the...Ch. 5 - For each of the following income statement line...Ch. 5 - Prob. 5.3IFRSCh. 5 - Prob. 5.4IFRS
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