Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Textbook Question
Chapter 6A, Problem 6P
(Record transactions in the periodic system; report inventory items in the financial statements) Accounting records for Just Desserts, Inc., show the following data for the year ended December 31, 2018 (amounts in thousands)
| Inventory, Dec 31, 2017 ............................................. | $ 510 |
| Purchases of inventory (on account) .......................... | 1,180 |
| Sales of inventory—80% on account, 20% for cash ... | 3,400 |
| Inventory at the lower of FIFO cost on marker, Dec 31, 2018 ........................ | 690 |
Requirements
1. Journalize Just Desserts’ inventory transactions for the year under the periodic system. Show all amounts in thousands.
2. Report ending inventory, sales, cost of goods sold, and gross profit on the appropriate financial statement (amounts in thousands). Show the computation of cost of goods sold.
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Chapter 6A Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. 6A - (Record inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and prepare the income...Ch. 6A - (Compute amounts for the GAAP inventory...Ch. 6A - (Journal inventory transactions in the periodic...Ch. 6A - (Compute cost of goods sold and gross profit on...Ch. 6A - (Record transactions in the periodic system;...
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