ACCT 220 Homework 4 Chap 5 & 8 please show work

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I-05.01 Tic Toc Clock Shop reported the following merchandising-related transactions during June. Tic Tock Clock Shop records all purchases "gross," and credit terms are precisely followed on both purchases and sales. Prepare journal entries to record each transaction. 3-Jun Purchased $4,000 of clocks on account from Swiss Time, F.O.B. destination, terms 1/10, n/30. 5-Jun Sold a $1,500 clock to Janci Holgren on account, terms 2/10, n/eom. The customer picked up the clock from the shop. 9-Jun Paid the amount due for the purchase of June 3. 11-Jun Purchased $8,000 of clocks on account from Melbourne Clockworks, F.O.B. shipping point, terms 2/10, n/30. Freight charges of $460 were prepaid by Melbourne and added to the invoice. No discount is permitted on the freight charges. 19-Jun Sold a $3,500 clock on account, terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination, and paid the freight charges of $330. 23-Jun The customer of June 19 called to report that the clock was received damaged. An agreement was reached to reduce the invoice by 20%. 27-Jun Paid Melbourne Clockworks for the purchase of June 11. 27-Jun Janci Holgren paid for the purchase of June 5. 28-Jun The customer of June 19 paid the balance due. Name: I-05.01 Date: Section: GENERAL JOURNAL Date Page Accounts Debit 3-Jun Purchased 1/10,n/30 clocks on account, terms 5-Jun Sold clock on account, terms 2/10, n/eom 9-Jun Paid for the puchase of June 3, taking the 1% discount 11-Jun Purchased clocks on account, 2/10,n/30, F.O.B. shipping point 19-Jun Sold clock on account, 2/10, n/eom, F.O.B. destination 23-Jun Reduced balance due from customer on account of damage Credit Name: I-05.01 Date: Section: GENERAL JOURNAL Date Page Accounts 27-Jun Paid the full amount due for the purchase of June 11 27-Jun Collected the amount due for the sale on June 5 28-Jun Collected remaining amount for June 19 sale, less 2% discount Debit Credit B-05.05 Gunnison Creamery produces a variety of specialty ice creams and buys ingredients from many suppliers. Each supplier seems to have unique policies about discounts and freight terms. Gunnison Creamery records all purchases "gross" and uses a periodic inventory system. Gunnison recently hired a new bookkeeper and needs your help to develop a template of sample journal entries for different scenarios. For purposes of preparing the template, assume that the purchase is $1,000 and freight is $100. Scenario Cash Discount Freight Terms Discount Condition 1 2 3 4 5 6 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 2/10, n/30 F.O.B. Shipping point/freight prepaid F.O.B. Shipping point/freight prepaid F.O.B. Destination/freight prepaid F.O.B. Destination/freight prepaid F.O.B. Shipping point/freight collect F.O.B. Shipping point/freight collect taken missed taken missed taken missed The first scenario is done as an example on the preprinted worksheet, and the electronic spreadsheet version expedites your solution by including a journal pick list of the following accounts: Cash Purchases Accounts Payable Purchase Discounts Freight-in Name: B-05.05 Date: Section: 1 GENERAL JOURNAL Date Page Accounts purchase Purchases Debit Credit 1.000 Freight-in 100 Accounts Payable 1.100 F.O.B. Shipping point/freight prepaid pay Accounts Payable 1.100 Purchase Discounts 20 Cash 1.080 discount taken 2 GENERAL JOURNAL Date Page Accounts Debit Credit purchase F.O.B. Shipping point/freight prepaid pay discount missed 3 GENERAL JOURNAL Page Name: B-05.05 Date: Section: Date Accounts Debit Credit purchase F.O.B. Destination/freight prepaid pay discount taken 4 GENERAL JOURNAL Date Page Accounts Debit Credit purchase F.O.B. Destination/freight prepaid pay discount missed 5 GENERAL JOURNAL Date purchase Page Accounts Debit Credit Name: B-05.05 Date: Section: F.O.B. Shipping point/freight collect pay discount taken 6 GENERAL JOURNAL Date Page Accounts purchase F.O.B. Shipping point/freight collect pay discount missed Debit Credit B-05.07 Pitkin Health Care Products provides the following alphabetic list of accounts and their respective balances. All accounts have normal balances, and income statement account balances are for the year ending December 31, 20X4. A physical count of merchandise inventory on hand at year end revealed a balance of $277,390. Use this information to prepare a comprehensive income statement. Accounts payable Accounts receivable Accumulated depreciation Beginning inventory, Jan. 1 Capital stock Cash Depreciation expense Dividends Equipment Freight-in Freight-out Insurance expense Marketing expense Note Payable Purchase discounts Purchase returns & allowances Purchases Rent expense Retained earnings, Jan. 1 Salaries expense Salaries payable Sales Sales discounts Sales returns and allowances Utilities expense $ 93.789 82.890 166.554 244.956 144.000 25.442 65.990 12.000 324.556 43.441 3.566 8.700 111.991 250.000 1.788 6.665 433.443 42.335 24.327 233.998 9.955 977.932 8.817 13.998 18.887 Name: Date: B-05.07 Section: PITKIN HEALTHCARE PRODUCTS Income Statement For the Year Ending December 31, 20X4 B-08.04 Patti Devine owns Devine Decorating. One of her most popular items is the Remind-a-Chime digital clock. This programmable clock issues "voice-based" reminders of important events like birthdays, anniversaries, etc. Following is the Remind-a-Clock inventory activity for January. The clocks on hand at January 1 had a unit cost of $140. Date Purchases Sales 1-Jan 5-Jan 40 60 units @ $150 each 16-Jan 23-Jan 28-Jan Units on Hand 100 70 units @ $255 each 90 units @ $170 each 30 120 55 units @ $295 each 65 (a) If Devine uses the first-in, first-out (FIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (b) If Devine uses the last-in, first-out (LIFO) inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? (c) If Devine uses the weighted-average inventory method (periodic approach), what values would be assigned to ending inventory and cost of goods sold? How much is gross profit? Name: Date: (a) B-08.04 Section: FIFO Beginning inventory $ - $ - Cost of goods sold $ - Sales $ - $ - $ - $ - Cost of goods sold $ - Sales $ - $ - $ - $ - Cost of goods sold $ - Sales $ - $ - Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit (b) LIFO Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit (c) Weighted-average Beginning inventory Plus: Purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit B-08.05 Tom Pryor is conducting an audit of the computerized inventory system used by Zix Corporation. Tom has inserted hypothetical data into the computer program that tracks inventory on a perpetual basis. Below are the hypotheical data inserted by Tom: Transaction Beginning inventory Units 10 Cost per unit $10 Purchase, day 1 5 $11 Sale, day 2 6 Purchase, day 3 8 Sale, day 4 9 $12 The computer program returned the following ending inventory values: FIFO perpetual, $96 LIFO perpetual, $80 Moving average, $88 Which of the three values appears to be incorrect, and what "error" might be causing this condition? FIFO perpetual: Date Day 0 Day 1 Purchases 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending LIFO perpetual: Cost of Goods Sold Balance 10 X $10 = $100 B-08.05 Date Day 0 Day 1 Purchases Cost of Goods Sold Balance 10 X $10 = $100 Cost of Goods Sold Balance 10 X $10 = $100 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending Moving average: Date Day 0 Day 1 Purchases 5 X $11 = $55 Day 2 Day 3 8 X $12 = $96 Day 4 Ending rporation. Tom has inserted elow are the hypotheical data dition? B-08.05 B-08.08 Doyle's Art buys and sells paintings from emerging artists. The values of the works are prone to fluctuate considerably based on the ever changing stature of a particular artist. Following is a listing of 6 paintings, along with their costs, estimated selling prices, and expected selling costs (inclusive of commissions and shipping). Painting Cost Fire on Hill $ 1.000 Estimated Estimated Selling Selling Price Expense $ 1.400 $ 400 Horses in Aspen Grove 2.500 800 100 Baby's First Smile 3.000 6.000 500 Endless War 2.000 2.200 300 Rain Drop on Cactus 1.500 2.500 400 Election Day Upset 2.300 1.600 200 (a) What unit value should be attached to each painting, assuming item-byitem application of the lower-of-cost-or-net-realizable-value rule? Fire Cost Expected selling price Selling expense Net realizable value VALUE TO REPORT Horse Baby War Rain Election B-08.11 Bell Computers assembles and sells notebook styled computers. The company is attempting to better manage cash flow and reduce inventory. The most recent strategy has been to require major vendors to establish warehouses adjacent to Bell's factory locations. Bell then buys components from vendors as needed for same day delivery. During 20X2, Bell had beginning inventory of $23,000,000 and cost of goods sold $168,000,000. Inventory at the end of 20X2 was $33,000,000. During 20X3, cost of goods sold was $440,000,000. Inventory at the end of 20X3 was $55,000,000. Q: A: One of Bell's product managers was very disappointed with the continuing increase in inventory from the beginning of 20X2 through the end of 20X3. He felt his directives to better manage inventory were not being followed. Prepare an inventory turnover ratio analysis for 20X2 and 20X3. Based on your analysis, is the company better managing inventory levels? 20X2 Inventory Turnover Ratio = 20X3 Inventory Turnover Ratio =
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