Debit cash 4800 accounts receivable 3900 merchandise inventory 1800 equipment 21
ID: 2434871 • Letter: D
Question
Debitcash 4800
accounts receivable 3900
merchandise inventory 1800
equipment 21,000
___________
$31,500 Credit Accumulated Depreciation - Equipment 1500 Accounts payable 3000 common stock 10,000 Retained Earnings 17,000 _________ $31,500
following transactions occurred during december:
dec. 3) - purchased 4000 units on account at a cost of $0.75 per unit. 5) - sold 4500 units on account for $0.90 per unit. (it sold 3000 of the $0.60 units and 1500 of the $0.75)
7) - granted the december 5 customer $180 credit for 200 units returned cost $150. These units were returned to inventory
17) - Purchased 2400 units for cash at $0.80 each
22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000 of the $0.75 units)
Adjustment Data: 1) accrued salaries payable $400 2) depreciation $200 per month
3) income tax expense was $175, to be paid next year
Instructions: a) journalize the december transactions and adjusting entries assuming gonzalez uses the perpetual inventory method b) enter the december 1 balances in the ledger T accounts and post the december transactions. in addition to the accounts mentioned above, use the following additional accounts: Cost of goods sold, depreciation expense, salaries expense, salaries payable, sales, sales returns and allowances, income tax expense, and income tax payable. c) prepare an adjusted trial balance as of december 31, 2010 d) prepare an income statement for december 2010 and a classifiedbalance sheet at december 21, 2010 e) compute ending inventory and cost of goods sold under FIFO assuming gonzalez company uses the periodic inventory system f) compute ending inventory and cost of goods sold under LIFO assuming gonzalez company uses the periodic inventory system
Debit
cash 4800
accounts receivable 3900
merchandise inventory 1800
equipment 21,000
___________
$31,500 Credit Accumulated Depreciation - Equipment 1500 Accounts payable 3000 common stock 10,000 Retained Earnings 17,000 _________ $31,500
following transactions occurred during december:
dec. 3) - purchased 4000 units on account at a cost of $0.75 per unit. 5) - sold 4500 units on account for $0.90 per unit. (it sold 3000 of the $0.60 units and 1500 of the $0.75)
7) - granted the december 5 customer $180 credit for 200 units returned cost $150. These units were returned to inventory
17) - Purchased 2400 units for cash at $0.80 each
22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000 of the $0.75 units)
Adjustment Data: 1) accrued salaries payable $400 2) depreciation $200 per month
3) income tax expense was $175, to be paid next year
Instructions: a) journalize the december transactions and adjusting entries assuming gonzalez uses the perpetual inventory method b) enter the december 1 balances in the ledger T accounts and post the december transactions. in addition to the accounts mentioned above, use the following additional accounts: Cost of goods sold, depreciation expense, salaries expense, salaries payable, sales, sales returns and allowances, income tax expense, and income tax payable. c) prepare an adjusted trial balance as of december 31, 2010 d) prepare an income statement for december 2010 and a classifiedbalance sheet at december 21, 2010 e) compute ending inventory and cost of goods sold under FIFO assuming gonzalez company uses the periodic inventory system f) compute ending inventory and cost of goods sold under LIFO assuming gonzalez company uses the periodic inventory system
Explanation / Answer
a) journalize the december transactions and adjusting entries assuming gonzalez uses the perpetual inventory method dec. 3) - purchased 4000 units on account at a cost of $0.75 per unit. Merchandise Inventory 3,000 Accounts payable 3,000 dec.5) - sold 4500 units on account for $0.90 per unit. (it sold 3000 of the $0.60 units and 1500 of the $0.75) Accounts receivable 4,050 Sales 4,050 Cost of goods sold 2,925 Merchandise Inventory 2,925 dec.7) - granted the december 5 customer $180 credit for 200 units returned cost $150. These units were returned to inventory Sales return and allowance $180 Accounts receivable $180 Merchandise Inventory $150 Cost of goods sold $150 17) - Purchased 2400 units for cash at $0.80 each Merchandise Inventory $1,920 Cash $1,920 22) - Sold 2000 units on account for $0.95 per unit. (it sold 2000 of the $0.75 units) Accounts receivable 1,900 Sales 1,900 Cost of goods sold 1,500 Merchandise Inventory 1,500 Adjustment Data: 1) accrued salaries payable $400 Salaries Expense $400 Salaries Payable $400 2) depreciation $200 per month Depreciation Expense $200 Accumulated Depreciation $200 3) income tax expense was $175, to be paid next year Income tax expense $175 Income tax payable $175 b) enter the december 1 balances in the ledger T accounts and post the december transactions. in addition to the accounts mentioned above, use the following additional accounts: Cost of goods sold, depreciation expense, salaries expense, salaries payable, sales, sales returns and allowances, income tax expense, and income tax payable. Cash Date Amount Date Amount Bal 4800 Dec-17 1920 Bal 2880 4800 4800 Accounts receivable Date Amount Date Amount Bal 3900 Dec-07 180 Dec-05 4050 Dec-22 1900 Bal 9670 9850 9850 merchandise Inventory Date Amount Date Amount Bal 1800 Dec-05 2925 Dec-03 3000 Dec-22 1500 Dec-07 150 Bal 2445 Dec-17 1920 6870 6870 Equipment Date Amount Date Amount Bal 21000 Bal 21000 21000 21000 Cost of goods sold Date Amount Date Amount Dec-05 2925 Dec-07 150 Dec-22 1500 Bal 4275 4425 4425 Depreciation expense Date Amount Date Amount Dec-31 200 Bal 200 200 200 Salaries expense Date Amount Date Amount Dec-31 400 Bal 400 400 400 Income Tax expense Date Amount Date Amount Dec-31 175 Accumulated Depreciation Date Amount Date Amount Bal 1500 Dec-31 200 Bal 1700 1700 1700 Accounts payable Date Amount Date Amount Bal 3000 Dec-03 3000 Bal 6000 6000 6000 Common stock Date Amount Date Amount Bal 10000 Bal 10000 10000 10000 Retained earnings Date Amount Date Amount Bal 17000 Bal 17000 17000 17000 Salaries Payable Date Amount Date Amount Dec-31 400 Bal 400 400 400 Sales Date Amount Date Amount Dec-05 4050 Dec-22 1900 Bal 5950 5950 5950 Date Amount Date Amount Dec-07 180 Bal 180 180 180 Income Tax Payable Date Amount Date Amount Dec-31 175 c) prepare an adjusted trial balance as of december 31, 2010 Trial Balance Cash 2880 Accumulated Depreciation 1700 Accounts receivable 9670 Accounts payable 6000 Merchandise Inventory 2445 Common stock 10000 Equipment 21000 Retained earnings 17000 Cost of goods sold 4275 Salaries Payable 400 Salaries Expense 400 Deperciation expense 200 Sales 5950 Income tax expense 175 Income tax payable 175 Sales return & Allowance 180 Total 41225 41225 d) prepare an income statement for december 2010 and a classified balance sheet at december 21, 2010 Income Statement Sales 5950 less returns 180 Net sales 5770 Less cost of goods sold 4275 Gross Margin 1495 Less expense Salaries expense 400 Depreiciation expense 200 Income tax expense 175 775 Net income 720 Retained earnings Balance Beginning 17000 Add Net Income 720 Balance closing 17720 Balance Sheet Assets Cash 2880 Accounts receivable 9670 Merchandise Inventory 2445 Equipment 21000 35995 Credits Accumulated dep 1700 Accounts payable 6000 common stock 10000 Retained earning 17720 Income tax payable 175 Salaries payable 400 35995 e) compute ending inventory and cost of goods sold under FIFO assuming gonzalez company uses the periodic inventory system FIFO METHOD Purchase Sales Date Units rate Units rate Amount Bal 3000 0.6 Dec-03 4000 0.75 Dec-05 3000 0.6 1800 1500 0.75 1125 Dec-07 200 0.75 Dec-17 2000 0.8 Dec-22 2000 0.75 1500 4425 Cost of goods sold = 4425 - 150 = 4,275 Inventory Dec-31 700 0.75 525 2000 0.8 1600 Total 2125 f) compute ending inventory and cost of goods sold under LIFO assuming gonzalez company uses the periodic inventory system LIFO METHOD Purchase Sales Date Units rate Units rate Amount Bal 3000 0.6 Dec-03 4000 0.75 Dec-05 4000 0.75 3000 500 0.6 300 Dec-07 200 0.6 Dec-17 2000 0.8 Dec-22 2000 0.8 1600 4900 Cost of goods sold = 4900 - 120 = 4,780 Inventory Dec-31 2700 0.6 1620
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.