Exam 3 Chapter 5 & 6 Merchandising and Inventories Name:________________________
ID: 2465227 • Letter: E
Question
Exam 3 Chapter 5 & 6 Merchandising and Inventories
Name:_________________________ Date:___________
1. Journalizing purchase transactions (3pts.)
Consider the following transactions for Partytime Toys:
Requirements
1.Journalize the purchase transactions. Explanations are not required.
2.In the final analysis, how much did the inventory cost Partytime Toys?
Requirement 1
Date
Accounts and Explanation
Debit
Credit
Oct. 8
Oct. 11
Oct. 15
Requirement 2
2. Journalizing purchase transactions (4pts.)
Consider the following transactions for Derry Drug Store:
Requirements
1.Journalize the purchase transactions. Explanations are not required.
2.In the final analysis, how much did the inventory cost Derry Drug Store?
Requirement 1
Date
Accounts and Explanation
Debit
Credit
Jun. 2
4
8
14
Requirement 2
3. Journalizing sales transactions (5pts)
Journalize the following sales transactions for Paul Sportswear. Explanations are notrequired.
Date
Accounts and Explanation
Debit
Credit
Aug. 1
5
10
4. Journalizing purchase and sales transactions (8pts.)
Suppose Muddyriver.com sells 2,000 books on account for $19 each (cost of these books is $22,800), credit terms 1/20, n/45 on October 10, 2016, to The Salem Store. One hundred of these books (cost $1,140) were damaged in shipment, so Muddyriver.com later received the damaged goods from The Salem Store as sales returns on October 13, 2016. The Salem Store paid the balance to Muddyriver.com on October 22, 2016.
Requirements
1.Journalize The Salem Store’s October 2016 transactions.
2.Journalize Muddyriver.com’s October 2016 transactions.
Requirement 1
Date
Accounts and Explanation
Debit
Credit
Oct. 10
13
22
Requirement 2
Date
Accounts and Explanation
Debit
Credit
Oct. 10
13
22
5. Adjusting for inventory shrinkage (extra credit 1pt)
Carla’s Furniture’s unadjusted Merchandise Inventory account at year-end is $62,000. The physical count of inventory came up with a total of $60,800. Journalize the adjusting entry needed to account for inventory shrinkage.
Date
Accounts and Explanation
Debit
Credit
Dec. 31
6. Journalizing closing entries (extra credit 4pts)
Rockwall RV Center’s accounting records include the following accounts at December 31, 2016.
Requirements
1.Journalize the required closing entries for Rockwall.
Requirement 1
Date
Accounts and Explanation
Debit
Credit
Dec. 31
31
31
31
7. Preparing a perpetual inventory record and journal entries—FIFO (5pts)
Montana Cycles started July with 25 bicycles that cost $36 each. On July 16, Montana bought 35 bicycles at $60 each. On July 31, Montana sold 33 bicycles for $105 each.
Requirements
1.Prepare Montana Cycle’s perpetual inventory record assuming the company uses the FIFO inventory costing method.
Requirement 1
Perpetual Inventory Record: FIFO
Purchases
Cost of Goods Sold
Inventory on Hand
Date
Quantity
Unit
Cost
Total Cost
Quantity
Unit
Cost
Total Cost
Quantity
Unit
Cost
Total Cost
Jul. 1
25 units
× $ 36
= $ 900
$ 900
16
31
Totals
35 units
$ 2,100
33 units
$ 1,380
27 units
$ 1,620
Date
Accounts and Explanation
Debit
Credit
Oct. 8
Oct. 11
Oct. 15
Explanation / Answer
Answer 1. No Data is Showing for the Question 1. - So Cannot Able to answer the question (no figures or transaction details of Partytime toys are showing in the question) Answer 2. No Data is Showing for the Question 2. - So Cannot Able to answer the question (no figures or transaction details of Derry Drug Store toys are showing in the question) Answer 3. No Data is Showing for the Question 3. - So Cannot Able to answer the question (no figures or transaction details of Paul Sportswear toys are showing in the question) Answer 4. Journal Entry Books of Salem Store's Date Particulars Dr Amount Cr Amount Oct. 10 Purchase A/c Dr. $38,000 To Accounts Payable A/c $38,000 (Purchase 2000 Books from Muddyriver.com @ $19 per Book on Credit) Oct. 13 Accounts Payable A/c Dr. $1,900 To Purchase Return A/c $1,900 (100 Books return to Muddyriver.com due to damaged in shipment) Oct. 22 Accounts Payable A/c Dr. $36,100 To Cash A/c $35,739 To Trade Discount Recd. $361 (Cash paid to Muddyriver.com and get the discount on making the payment on time) Journal Entry Books of Muddyriver.com's Date Particulars Dr Amount Cr Amount Oct. 10 Accounts Receivable A/c Dr. $38,000 Cost of goods Sold A/c Dr. $22,800 To Sales A/c $38,000 To Inventory A/c $22,800 (Sold 2000 Books to SalemStore's @ $19 per Book on Credit) Oct. 13 Sales Return A/c Dr. $1,900 Inventory A/c Dr. $1,140 To Account Receivable A/c $1,900 To Cost of Goods Sold A/c $1,140 (100 Books return from Salem Store's due to damaged in shipment) Oct. 22 Cash A/c Dr. $35,739 Trade Discount A/c Dr. $361 To Accounts Receivable A/c $36,100 (Cash received from Salem Store's) Answer 5. Journal Entry Date Particulars Dr Amount Cr Amount Dec 31. Inventory Shrinkage A/c Dr. $1,200 To Inventory A/c $1,200 (On Physical Count the Inventory is short by $1200 ($62000 - $60800) Answer 6. No Data is Showing for the Question 6. - So Cannot Able to answer the question (no figures or transaction details of RockWall R V center's are showing in the question) Answer 7 Perpectual Inventory Record: FIFO Purchase Cost of Goods Sold Inventory on Hand Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jul. 1 25 $36 $900 $900 Jul. 16 35 $60 $2,100 25 $36 $900 $3,000 35 $60 $2,100 Jul. 31 25 $36 $900 $1,380 0 $36 $0 $1,620 8 $60 $480 27 $60 $1,620 Total 35 60 2100 33 96 1380 27 $60 $1,620
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.