E6–22
Req. 1 WOLVERINE WORLD WIDE INC.
Income Statement
For the 2012 fiscal year
(in millions)
Net Sales Revenue …………………………... $ 1,640
E6-23
a) Perpetual inventory system:
January 14
Accounts Receivable …………………………………………………
1,125
Sales Revenue (25 units at $45) ……………………..……
1,125
Cost of Goods Sold ……………………………………………………
625
Inventory (25 units at $25) …………………………..….………
625
April 9
Inventory (15 units at $25) …………………………………..………
375
Accounts Payable …………………………………………………
375
September 2
Accounts Receivable …………………………..…………….………
2,500
Sales Revenue (50 units at $50) ……………………..……
2,500
Cost of Goods Sold ……………………………………………………
1,250
Inventory (50 units at $25) …………………………..….………
1,250
End of year
No year-end adjusting entry needed.
January 14
Accounts Receivable …………………………………………………
1,125
Sales Revenue (25 units at $45) ……………………..……
1,125
April 9
Purchases (15 units at $25) …………………………………………
375
Accounts Payable …………………………………………………
375
September 2
Accounts Receivable …………………………………………………
2,500
Sales Revenue (50 units at $50) ……………………..……
2,500
End of year
Cost of Goods Sold ……………………………………………………
2,875
Purchases ……………………………………………………....
375
Inventory (Beginning: 100 units at $25) ……………………
2,500
Assume all goods are sold.
Inventory (Ending: 40 units at $25) …………………………..
1,000
Cost of Goods Sold ………………………………………………
1,000
Recognize that not all goods were sold.
Calculation of Cost of Goods Sold:
Beginning Inventory (100 units at $25)
$2,500
Add Purchases
375
Cost of Goods Available For Sale
2,875
Less Ending Inventory (physical count—40 units at $25)
1,000
Cost of Goods Sold
$1,875
ANSWERS TO COACHED PROBLEMS
CP6–1
Req. 1
a.
+230,000
b.
−5,000
c.
−4,500
[($230,000 − $5,000) x 2% discount]
Req. 2
(a)
Inventory …………………………………………………………………..
230,000
Accounts Payable …………………………………………………
230,000
(b)
Accounts Payable ………………………………………………………
5,000
Inventory …………………………..…………………………………
5,000
(c)
Accounts Payable ($230,000 – $5,000) …………………………
225,000
Cash ($225,000 x 98%)…………………………………………..
220,500
Inventory ($225,000 x 2%) …………………………..………….
4,500
CP6-2
Req. 1
Transaction
Sales
Revenues
Sales
Returns
and
Allowances
Sales
Discounts
Net
Sales
Cost of
Goods
Sold
Gross
Profit
a.
+230,000
NE
NE
+230,000
+175,000
+55,000
b.
NE
+5,000
NE
−5,000
NE
−5,000
c.
NE
NE
+4,500*
−4,500
NE
−4,500
CP6-2 (continued)
Req. 3
(a)
Accounts Receivable ………………………………………………….
230,000
Sales Revenue ……………………………………………………..
230,000
Cost of Goods Sold ……………………………………………………
175,000
Inventory …………………………..…………………………………
175,000
(b)
Sales Returns and Allowances …………………………………….
5,000
Accounts Receivable ……………………………………………..
5,000
(c)
Cash ($225,000 x 98%) ……………………………………………….
220,500
Sales Discounts ($225,000 x 2%) ………………………………….
4,500
Accounts Receivable ($230,000 – $5,000)…………………
225,000
CP6–3
Req. 1
Sales Revenue ($275,000 + $20,000) ……………………………. $295,000
Sales Discounts ($20,000 x 50% collected x 2%) ……………. (200)
Sales Returns and Allowances ($1,600 + $1,800) …………… (3,400)
Net Sales ……………………………………………………………… 291,400
Cost of Goods Sold ($152,070 – $800 + $9,000) …………….. 160,270
CP6–3 (continued)
Req. 4
The contract will increase Campus Stop’s gross profit by $3,000 ($15,000 − $12,000),
but it will decrease the gross profit percentage, as calculated below.
Gross Profit
Percentage
=
Gross Profit
x 100 =
$131,130 + $3,000
x 100 =
Net Sales
$291,400 + $15,000
=
$134,130
x 100 =
43.8%
$306,400
The gross profit percentage decreases because the gross profit percentage on the
contract (20% = $3,000 ÷ $15,000) is less than the gross profit percentage earned
without the contract (45%).
CP6–4
Req. 1 PSYMON COMPANY, INC.
Income Statement
For the Year Ended December 31
Sales Revenue …………………………………………………………… $182,000
CP6-4 (continued)
Req. 2 PSYMON COMPANY, INC.
Income Statement
For the Year Ended December 31
was 41.3%, which means that the company earned slightly more than $0.41 of gross
CP6-5
Req. 1
Periodic inventory system:
January 3
Accounts Receivable …………………………………………………
300
Sales Revenue (20 units at $15) ……………………..……
300
January 6
Purchases (30 units at $10) …………………………………………
300
Accounts Payable …………………………………………………
300
January 16
Accounts Receivable …………………………………………………
450
Sales Revenue (30 units at $15) ……………………..……
450
January 19
Accounts Receivable …………………………………………………
400
Sales Revenue (20 units at $20) ……………………..……
400
January 26
Purchases (10 units at $10) …………………………………………
100
Accounts Payable …………………………………………………
100
January 31
Cost of Goods Sold ……………………………………………………
2,400
Purchases ($300 + 100) …………………………………………
400
Inventory (Beginning: 200 units at $10) ……………………
2,000
Assume all goods are sold.
Inventory (Ending: 160 units at $10) ……………………….….
1,600
Cost of Goods Sold ………………………………………………
1,600
Recognize that not all goods were sold.
Calculation of Cost of Goods Sold:
Beginning Inventory (200 units at $10)
$2,000
Add Purchases
400
Goods Available For Sale
2,400
Less Ending Inventory (physical count—160 units at $10)
1,600
Cost of Goods Sold
$800
CP6-5 (continued)
Req. 2
Perpetual inventory system:
January 3
Accounts Receivable …………………………………………………
300
Sales Revenue (20 units at $15) ……………………..……
300
Cost of Goods Sold ……………………………………………………
200
Inventory (20 units at $10) ………………………………………
200
January 6
Inventory (30 units at $10) …………………………………..………
300
Accounts Payable …………………………………………………
300
January 16
Accounts Receivable …………………………………………………
450
Sales Revenue (30 units at $15) ……………………..……
450
Cost of Goods Sold ……………………………………………………
300
Inventory (30 units at $10) …………………………..….………
300
January 19
Accounts Receivable …………………………………………………
400
Sales Revenue (20 units at $20)…………………………..
400
Cost of Goods Sold ……………………………………………………
200
Inventory (20 units at $10) ………………………………………
200
January 26
Inventory (10 units at $10) …………………………………..………
100
Accounts Payable …………………………………………………
100
January 31
Cost of Goods Sold (10 units at $10) …………………….…….
100
Inventory ……………………………………………………....
100
6-30 Solutions Manual
© 2016 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
ANSWERS TO GROUP A PROBLEMS
PA6-1
Req. 1
a.
+550,000
b.
−10,000
c.
−10,800
[($550,000 − $10,000) x 2% discount]
Req. 2
(a)
Inventory …………………………………………………………………..
550,000
Accounts Payable …………………………………………………
550,000
(b)
Accounts Payable …………………………..………………………….
10,000
Inventory …………………………..…………………………………
10,000
(c)
Accounts Payable ($550,000 – $10,000) ………………………..
540,000
Cash ($540,000 x 98%)…………………………………………..
529,200
Inventory ($540,000 x 2%) …………………………..………….
10,800
PA6-2
Req. 1
Transaction
Sales
Revenues
Sales
Returns
and
Allowances
Sales
Discounts
Net
Sales
Cost of
Goods
Sold
Gross
Profit
a.
+550,000
NE
NE
+550,000
+415,000
+135,000
b.
NE
+10,000
NE
−10,000
NE
−10,000
c.
NE
NE
+10,800*
−10,800
NE
−10,800