Title: Exercise 5-14
QA_Ori:
Perpetual
1)
1-Nov Merchandise Inventory
1,50
0
2)
5-Nov Accounts Payable
1,50
0
3)
7-Nov Cash 196
4)
10-Nov Merchandise Inventory 90
5)
13-Nov Accounts Receivable
1,60
0
6)
16-Nov Sales Returns and Allowances 300
Instructor note: This second entry changes if the goods returned are
defective. In this case the returned inventory is recorded at its estimated
value, not its cost. To illustrate, if the goods (costing $130) returned are
defective and estimated to be worth, say, $50, the following entry is made:
Dr. Merchandise Inventory for $50, Dr. Loss from Defective Merchandise
for $80, and Cr. Cost of Goods Sold for $130.
QA_Edit:
Perpetual
Title: Exercise 5-15
QA_Ori:
Multiple-Step Income Statement — Sales Related Information Only
Sales (gross) $200,000
Title: Exercise 5-16A
QA_Ori:
2-Apr Purchases
4,60
0
Accounts Payable—Lyon 4,600
Purchased merchandise on credit.
28-Apr Accounts Payable—Frist
7,40
0
Purchases Discounts 148
Cash 7,252
Paid balance (less 2%) within discount period.
Title: Exercise 5-17A
QA_Ori:
1. BUYER – Santa Fe Company
Credit Purchase
Purchases 24,000
2. SELLER – Mesa Company
Credit Sale
Accounts Receivable 24,000
Sales 24,000
Title: Exercise 5-18A
QA_Ori:
1. Entries for Sydney Company (BUYER):
11-May Purchases 40,000
Title: Exercise 5-19A
QA_Ori:
Periodic Inventory System
1)
1-Nov Purchases 1,500
Accounts Payable 1,500
To record purchases on credit.
2)
3)
7-Nov Cash 196
4)
5)
6)
Title: Exercise 5-20
QA_Ori:
L´Oréal
Income Statement (€ millions)
For Year Ended December 31, 2011
Net sales 20,343
Cost of sales 5,852
Gross profit 14,492
Title: Problem 5-1A
QA_Ori:
2-Jul Accounts Receivable—Creek 900
Sales 900
Sold goods on credit, terms 2/10, n/60.
2-Jul Cost of Goods Sold 500
Merchandise Inventory 500
To record cost of the July 2 sale.
Merchandise Inventory * 40
Cash 1,960
Paid payable in discount period (*2% x $2,000).
Received a credit memorandum for August 8
purchase.
15-Aug Cash 4,508
Sales Discounts* 92
Accounts Receivable—Laird 4,600
Collected receivable within 2% discount period.
*[($5,200 – $600) x 2%]
(Discount period has lapsed.)
Title: Problem 5-3A
QA_Ori:
Part 1
Adjustment (a)
31-Jan Store Supplies Expense
4,05
0
Adjustment (b)
31-Jan Insurance Expense 1,40
Adjustment (c)
Depreciation Expense—Store
1,52
Adjustment (d)
31-Jan Cost of Goods Sold
1,60
0
Part 2 Multiple-step income statement
NELSON COMPANY
Income Statement
For Year Ended January 31, 2013
Sales $111,950
Less: Sales discounts $2,000
Sales returns and allowances 2,200 4,200
Net income $975
and general and administrative activities.
Part 3 Single-step income statement
NELSON COMPANY
Income Statement
For Year Ended January 31, 2013
Net sales $107,750
Expenses
$40,00