Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134491509
Author: MILLER-NOBLES, Tracie L., Mattison, Brenda L., Matsumura, Ella Mae
Publisher: PEARSON
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Textbook Question
Chapter 7, Problem P7.30CT
Continuing Problem
P7-3D Using aft journals
This problem continues the Canyon Canoe Company situation. At the beginning oF the new year, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them Canyon Canoe Company uses the perpetual Inventory system to account for the Inventory During January 2019. Canyon Canoe Company completed the blowing merchandising transactions.
Jan. 1 Purchased 10 T-shirts at $4 each and paid cash.
2 Sold 6 T-shirts for $10 each, total? cost of $24. Received cash.
3 Purchased 50 T-shirts on account at SS each. Terms 2/10, &30.
7 Paid the supplier for the T-Shirts purchased on January 3, less discount.
8 Realized 4 T-shirts from the January 1 order were printed wrong and returned them
for a cash refund.
10 Sold 40 T-shirts on account for $10 each, total cost of $200. Terms 3/15, n/45.
12 Received payment for the T-shirts sold on account on January 10, less discount.
14 Purchased 100 T-shirts on account at $4 each. Terms 4/15, n/30.
18 Canyon Company called the supplier from the January 14 purchase and told them
that some of the T-shirts were the wrong color, The supplier offered a $50 purchase
allowance.
20 Paid the supplier for the T-shirts purchased on January 14. less the allowance and
discount.
21 Sold 60 T-shirts on account for $10 each, total cost of $220. Terms 2120, n130.
23 Received a payment on account for the T-shirts sold on January 21. less discount.
25 Purchased 320 T-shirts on account at 55 each. Terms 2/10. n/30. FOB shipping point.
27 Paid freight associated with the January 25 purchase, $48.
29 Paid for the January 25 purchase, less discount.
30 Sold 275 T-shirts on account for $10 each, total cost of $1,300. Terms 2/10, n/30.
31 Received payment for the T-shirts sold on January 30, less discount.
Requirements
1 Enter the transactionin a sales journal (page 2), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 7), a cash payments journal (page 6), and a general journal (page 4), as appropriate.
2 Total each column of the special journals Show that total đeb4s equal total credits ri each special journal.
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Question C onlyAll Things Auto are retailers who purchase and sell vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200.
The following transactions, relating to the “DieHard” brand were completed during the quarter:
(A) Prepare a perpetual inventory record for All Things Auto, using the first in, first out (FIFO) method to determine the value of ending inventory at December 31, 2020, and the total amount to be assigned to cost of goods sold for the period.
(B) Given that selling, distribution and administrative costs for the quarter were $23,445, $10,250 and$75,435 respectively, prepare an income statement for All Things Auto (DieHard) for the quarter ended December 31, 2020, to determine the net profit for the quarter.
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Question
PERPETUAL INVENTORY SYSTEM - STATEMENT OF FINANCIAL PERFROMANCE
Mr. Lopez opened a mini grocery store with business name Lopez Fiesta Mart. Operations began on January 1, 2021, and the following transactions were completed during the month:
1.Mr. Lopez withdrew ₱150,000 from a personal savings account and used it to open a new account in the name of Lopez Fiesta Mart.
2.Bought grocery supplies on account ₱10,700.
4.Acquired a service vehicle costing ₱76,000. A payment of ₱25,000 Cash was made and a note payable given for the ₱51,000 remainder payable for 6 equal monthly installment.
6.Purchased merchandise from Puregold ₱49,500, terms 5/10, 3/20.
7.Paid ₱1,600 delivery charge for January 6 transactions.
8.Paid for three months of advertising and recorded Prepaid Advertising in the amount of ₱6,000.
11.Sold merchandise on account ₱42,000 with 40% mark-up from the inventory cost of ₱30,000, term 2/10, n/30.
12.Paid ₱1,200 freight for January 11 transactions.
14.Returned…
Chapter 7 Solutions
Horngren's Accounting: The Managerial Chapters, Student Value Edition (12th Edition)
Ch. 7 - Which of the following benefits of an effective...Ch. 7 - Prob. 2QCCh. 7 - Which of the following is not a special journal?...Ch. 7 - Mountain Day Spa sold merchandise inventory on...Ch. 7 - Prob. 5QCCh. 7 - Centex Sound Systems purchased merchandise...Ch. 7 - Every transaction recorded in the cash payments...Ch. 7 - Prob. 8QCCh. 7 - Which is a disadvantage of an enterprise resource...Ch. 7 - Prob. 1RQ
Ch. 7 - Prob. 2RQCh. 7 - Explain the three basic components of an...Ch. 7 - What is a special journal?Ch. 7 - What is the purpose of a subsidiary ledger?Ch. 7 - Prob. 6RQCh. 7 - List the four special journals often used in a...Ch. 7 - Explain the posting process of the sales journal.Ch. 7 - Provide some examples of transactions that would...Ch. 7 - What are the columns that are typically used in...Ch. 7 - Prob. 11RQCh. 7 - When is the general journal used in a manual...Ch. 7 - Explain the two components of a computerized...Ch. 7 - Prob. 14RQCh. 7 - What is an enterprise resource planning (ERP)...Ch. 7 - Prob. 16RQCh. 7 - How would a business record a sale of services on...Ch. 7 - How would a business record a bill received in...Ch. 7 - Prob. S7.1SECh. 7 - Defining components of an accounting information...Ch. 7 - Identifying special journals Learning Objective 2...Ch. 7 - Prob. S7.4SECh. 7 - Posting transactions from a sales journal to a...Ch. 7 - Prob. S7.6SECh. 7 - Posting transactions from a cash receipts journal...Ch. 7 - Recording transactions in a purchases journal...Ch. 7 - Posting transactions from a purchases journal to a...Ch. 7 - Prob. S7.10SECh. 7 - Prob. S7.11SECh. 7 - Prob. S7.12SECh. 7 - Prob. S7.13SECh. 7 - Prob. E7.14ECh. 7 - Prob. E7.15ECh. 7 - Using the sales and cash receipts journals...Ch. 7 - Prob. E7.17ECh. 7 - Prob. E7.18ECh. 7 - Prob. E7.19ECh. 7 - Recording transactions-cash payments journal...Ch. 7 - Posting from the purchases journal; balancing the...Ch. 7 - Identifying transactions in the accounts payable...Ch. 7 - Prob. E7.23ECh. 7 - Prob. P7.24APGACh. 7 - Prob. P7.25APGACh. 7 - Prob. P7.26APGACh. 7 - Prob. P7.27BPGBCh. 7 - Using the purchases, cash payments, and general...Ch. 7 - Using all Journals, posting, and balancing the...Ch. 7 - Continuing Problem P7-3D Using aft journals This...Ch. 7 - Using all journals 2 This problem continues the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Comprehensive Problem for Chapter 7 Completing the...Ch. 7 - Tying It All Together Case Before you begin this...Ch. 7 - Decision Case 7-1 A fire destroyed certain...Ch. 7 - Fraud Case 7-1 Didrikson Rubin, the auditor of Red...
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- JOURNAL ENTRIESPERPETUAL INVENTORY Joan Ziemba owns a small variety store. The following transactions took place during March of the current year. Journalize the transactions in a general journal using the perpetual inventory method. Mar.3 Purchased merchandise on account from City Galleria, 2,900. 7 Paid freight charge on merchandise purchased, 225. 13 Sold merchandise on account to Amber Specialties, 3,400. The cost of the merchandise was 2,200. 18 Received a credit memo from City Galleria for merchandise returned, 650. 22 Issued a credit memo to Amber Specialties for merchandise returned, 600. The cost of the merchandise was 320.arrow_forward( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.arrow_forwardAppendix 2 PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 20Y9. The inventory as of June 30, 20Y9, was 508,000. The estimated cost of customer returns inventory for June 30, 20Y9, is estimated to increase to 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 20Y9. 4. What would be the net income if the perpetual inventory system had been used?arrow_forward
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