Intermediate Accounting, Keiso 15e

FratBro23
Category:
Accounting
Price: $5 USD

Question description

1. Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 54 units that cost $37 each. During June, (1) the company purchased 162 units at $37 each, (2) returned 6 units for credit, and (3) sold 135 units at $54 each.

Journalize the June transactions.

2.

msterdam Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available.

Units

Unit Cost

Total Cost

April 1 inventory340$16$ 5,440
April 15 purchase380197,220
April 23 purchase

310

20

6,200

1,030

$18,860


.


Calculate weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

Weighted average cost per unit

3.Arna, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow.

Year Ended 
December 31

Inventory at
Current-Year Cost

Price
Index

2013$19,400100
201421,600108
201526,105115

Compute the value of the 2014 and 2015 inventories using the dollar-value LIFO method.


20142015
Inventory under LIFO
4.The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated below.

Year

Net Income 
per Books

Error in Ending
Inventory

2009$50,400Overstated$ 3,160
201052,690Overstated9,700
201154,890Understated12,550
201257,030No error
201359,510Understated2,020
201461,710Overstated8,520

Prepare a worksheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors.

Errors in Inventories

Year

Net Income
Per Books

Add Overstatement 
Jan. 1

Deduct Understatement 
Jan. 1

Deduct Overstatement 
Dec. 31

Add Understatement 
Dec. 31

Corrected Net 
Income

2009$50,400

$[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_1">

$[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_112">

$[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_005">

$[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_113">

$[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_009">

201052,690

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_011">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_115">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_019">

201154,890

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_021">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_116">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_117">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_029">

201257,030

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_121">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_033">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_118">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_039">

201359,510

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_122">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_124">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_accountingtextentry_125">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_047">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793378028_0_8429839333717797_049">

201461,710
5.

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.

August 10Purchased merchandise on account, $19,800, terms 2/10, n/30.
13Returned part of the purchase of August 10, $1,700, and received credit on account.
15Purchased merchandise on account, $22,100, terms 1/10, n/60.
25Purchased merchandise on account, $29,300, terms 2/10, n/30.
28Paid invoice of August 15 in full.

[img border="0" alt="" height="1" width="8" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif">

[img border="0" alt="Collapse question part" height="15" width="15" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" id="part_control_icon_EAT_1361793485287_0_9412254310576954" >

(a1)

Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken:

Prepare general journal entries to record the transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Aug. 10

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_1">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_003">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_011">

Aug. 13

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_013">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_015">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_021">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_023">

Aug. 15

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_025">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_027">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_035">

Aug. 25

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_037">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_047">

Aug. 28

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_049">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_051">

[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_053">

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[img alt="" src="http://edugen.wiley.com/edugen/art2/common/pixel.gif" class="answerMarker" id="amarker_EAT_1361793484177_0_8813531284809972_057">

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