General Journal Entries and Annual Sales Exercises

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Li Kwan Ho CCBS4005 2021-22 Sem 1: CCBS4005-CL08 Assignment 3 1. instructions | help value: 11.00 points This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.) Beginning Inventory 76,000 Net Purchases 104,000 Ending Inventory 35,200 Cost of Goods Sold 144800 Profit or (Loss) 53200 20,000 a. b. 470,000 71,000 300,000 107000 264,000 206000 186000 c. 630,000 160,000 471000 190,000 441,000 189,000 150,000 39000 d. 780,000 231000 450,000 135,000 546000 234,000 260,000 -26000 e. 430000 156,000 434000 290,000 300,000 130,000 145000 (15,000) ©2021 McGraw-Hill Education. All rights reserved. Gross Profit 125,200 Expenses 72,000 Net Sales 270,000 CCBS4005 2021-22 Sem 1: CCBS4005-CL08 Assignment 3 Li Kwan Ho instructions | help [The following information applies to the questions displayed below.] Viper Company began year 2011 with 20,500 units of product in its January 1 inventory costing $15.10 each. It made successive purchases of its product in year 2011 as follows. The company uses a periodic inventory system. On December 31, 2011, a physical count reveals that 36,000 units of its product remain in inventory. Mar. 7 May. 25 Aug. 1 Nov. 10 3. 29,000 units @ $18.10 each 31,000 units @ $22.10 each 21,000 units @ $24.10 each 33,500 units @ $27.10 each value: Required information 4.00 points Required: 1. Compute the number and total cost of the units available for sale in year 2011. (Omit the "$" sign in your response.) 135000 units Number of units available for sale Cost of the units available for sale 4. 2933500 $ value: Required information 16.00 points 2. Compute the amounts assigned to the 2011 ending inventory and the cost of goods sold. (Input all amounts as positive values. Round per unit costs to 3 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) (a) FIFO periodic Total cost of units available for sale 2933500 $ 968100 Less ending inventory on a FIFO basis Cost of units sold 1965400 $ (b) Weighted average cost periodic Total cost of units available for sale Less ending inventory on a weighted average cost Cost of units sold $ 2933500 782266.667 $ 2151233.333 ©2021 McGraw-Hill Education. All rights reserved. CCBS4005 2021-22 Sem 1: CCBS4005-CL08 Assignment 3 2. Li Kwan Ho instructions | help value: 20.00 points Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions. Date Jan. 1 Feb. 10 Mar. 13 Mar. 15 Aug. 21 Sept. 5 Sept. 10 Activities Beginning inventory Purchase Purchase Sales Purchase Purchase Sales Totals Units Acquired at Cost 790 units @ $47.80/unit 390 units @ $43.80/unit 195 units @ $23.80/unit Units Sold at Retail 685 units @ $78.80/unit 350 units @ $63.80/unit 185 units @ $51.80/unit 105 units @ $78.80/unit 1,910 units 790 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. (Omit the "$" sign in your response.) Cost of goods available for sale 91397 $ 1910 units Number of units available for sale 2. Compute the number of units in ending inventory. Ending inventory 1120 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) specific identification-units sold consist of 595 units from beginning inventory and 195 units from the March 13 purchase, and (c) weighted average cost. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) (a) FIFO Ending inventory 53630 $ (b) Specific identification $ 29145 (c) Weighted average cost $ 53594.05 4. Compute gross profit earned by the company for each of the three costing methods. (Round your per unit costs to 2 decimal places and inventory balances and final answer to the nearest dollar amount.Omit the "$" sign in your response.) (a) FIFO Gross profit 24490 $ (b) Specific identification $ 62252 (c) Weighted average cost $ 37802.95 ©2021 McGraw-Hill Education. All rights reserved. Li Kwan Ho CCBS4005 2021-22 Sem 1: CCBS4005-CL08 Assignment 3 5. instructions | help value: 13.00 points Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2012, accounts receivable were presented in the company's statement of financial position as follows: Accounts receivable from clients Less: Allowance for Impairment $ 3,100,000 80,000 During 2013, $165,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $13,000 were subsequently collected. At the end of 2013, an aging of accounts receivable indicated a need for a $232,000 allowance to cover possible failure to collect the accounts currently outstanding. Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. 1.One entry to summarize all accounts written off against the Allowance for Impairment during 2013. 2.Entries to record the $13,000 in accounts receivable that were subsequently collected. 3.The adjusting entry required at December 31, 2013, to increase the Allowance for Impairment to $232,000. a. Prepare the above general journal entries: (Omit the "$" sign in your response.) Date 2013 Var.* General Journal Accounts receivable Debit 165000 Allowance for Impairment Var.* Allowance for Impairment 165000 165000 Accounts receivable Var.* 165000 Accounts receivable 13000 Allowance for Impairment Dec 31 Credit Uncollectible accounts expense 13000 232000 Allowance for Impairment ©2021 McGraw-Hill Education. All rights reserved. 232000 Li Kwan Ho CCBS4005 2021-22 Sem 1: CCBS4005-CL08 Assignment 3 6. instructions | help value: 13.00 points Pachel Corporation reports the following information pertaining to its accounts receivable: Current $ 60,000 1–30 $ 40,000 Days Past Due 31–60 61–90 $ 25,000 $ 12,000 Over 90 $ 2,000 The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above: Current receivables outstanding Receivables 1–30 days past due Receivables 31–60 days past due Receivables 61–90 days past due Receivables over 90 days past due 2% 4 16 40 90 The company uses a statement of financial position approach to estimate credit losses. a. Record the company's impairment loss of receivable, assuming it has a $1,400 credit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.) General Journal Impairment loss of receivable Debit 12000 Allowance for Impairment Credit 12000 b. Record the company's impairment loss of receivable, assuming it has a $1,600 debit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.) General Journal Loss on sale of investments Debit 11800 (Click to select) Credit 11800 ©2021 McGraw-Hill Education. All rights reserved.
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