Problem 1:
September sample transactions
1 Purchased merchandise inventory on account from tly Co., $3,000. Terms 1/15, n/EOM, FOB shipping point.
2 Paid freight bill of $50 on September 1 purchase.
4 Purchased merchandise inventory for cash of $2,000.
6 Returned $300 of inventory from September 1 purchase.
7 Sold merchandise inventory to lyc Co., $4,000, on account. Terms 2/15, n/35. Cost of goods, $3,000.
9 Purchased merchandise inventory on account from tst Co., $6,000. Terms 2/10, n/30, FOB destination.
10 Made payment to tly Co. for goods purchased on September 1, less return and discount.
11 Received payment from lyc Co., less discount.
12 After negotiations, received a $100 allowance from tst Co..
16 Sold merchandise inventory to jct Co., $3,500, on account. Terms 1/10, n/EOM. Cost of goods, $2,000
20 Made payment, less allowance, to tst Co. for goods purchased on September 9.
20 jct Co. returned $300 of the merchandise sold on September 16. Cost of goods, $100.
21 Sold merchandise inventory to tlt Co. for $2,100 on account that cost $500. Terms of 2/10, n/30 were offered, FOB
shipping point. As a courtesy to tlt Co., $60 of freight was added to the invoice for which cash was paid by Sample Co.
22 After negotiations, granted a $200 allowance to tlt Co. for merchandise purchased on September 21.
23 Received payment from tlt Co., less allowance and discount.
29 Received payment from jct Co. less return.
Requirement:
Record journal entries for the September transactions
Problem 2:
Assume that Sample Co. completed the following perpetual inventory transactions for a line of tires:
May 1 Beginning merchandise inventory 16 tires @ $65 each
11 Purchase 10 tires @ $78 each
23 Sale 12 tires @ $90 each
26 Purchase 14 tires @ $80 each
29 Sale 15 tires @ $90 each
Requirements
1. Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit.
2. Prepare a perpetual inventory record, using the LIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit.
3. Prepare a perpetual inventory record, using the weighted average inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory and gross profit.
(Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.)
4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?
Problem 1:
The records of HLP Company list the following selected accounts for the quarter ended September 30, 2015:
|
Interest Revenue
|
$ 400
|
Accounts Payable
|
$ 16,500
|
|
Merchandise Inventory
|
45,700
|
Accounts Receivable
|
33,900
|
|
Notes Payable, long-term
|
42,000
|
Accumulated Depreciation-Equipment
|
37,500
|
|
Salaries Payable
|
3,400
|
HLP, Capital, Jun. 30
|
54,900
|
|
Sales Discounts
|
2,200
|
HIP, Withdrawals
|
18,500
|
|
Sales Returns and Allowances
|
8,400
|
Cash
|
8,100
|
|
Sales Revenue
|
296,700
|
Cost of Goods Sold
|
162,400
|
|
Rent Expense (Selling)
|
22,500
|
Equipment
|
125,000
|
|
Office Supplies
|
6,000
|
Interest Payable
|
1,200
|
|
Unearned Revenue
|
13,200
|
Rent Expense (Administrative)
|
9,660
|
|
Interest Expense
|
2,000
|
Utilities Expense (Selling)
|
11,250
|
|
Depreciation Expense-Equipment (Administrative)
|
1,610
|
Delivery Expense (Selling)
|
3,750
|
|
Utilities Expense (Administrative)
|
4,830
|
|
|
|
Requirements:
|
|
|
|
Requirements:
1. Prepare a single step income statement
2. Prepare a mulit step income statement
3. The company, strives to earn a gross profit percentage of at least 50%. Did HLP achieve this goal? Show your calculations.
4. If the business wanted to pay the least amount of income taxes possible, which method would it choose?
Attachment:- Assignment.rar