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CHAPTER 5 Accounting for Merchandising Businesses
Appendix Ex. 5–39
Jan. 2 Merchandise Inventory 18,200
Accounts Payable 18,200
5 Merchandise Inventory 190
CHAPTER 5 Accounting for Merchandising Businesses
Appendix Ex. 5–40
Dec. 31 Merchandise Inventory 460,000
Sales 2,300,000
Closing Entries
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–1A
Oct. 1 Merchandise Inventory 14,448
14 Accounts Payable—Taco Co. 9,100
Cash 8,918
Merchandise Inventory 182
19 Merchandise Inventory 27,300
Accounts Payable—Veggie Co. 27,300
PROBLEMS
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–2A
Mar. 2 Accounts Receivable—Equinox Co. 18,900
Sales 18,900
Merchandise Inventory 33,200
5 Cash 31,800
Sales 30,000
Sales Tax Payable 1,800
5 Cost of Merchandise Sold 19,400
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–2A (Concluded)
Mar. 18 Sales Returns and Allowances 4,800
Accounts Receivable—Targhee Co. 4,800
26 Cash 22,473
Sales Discounts 227
Accounts Receivable—Targhee Co. 22,700
28 Cash 8,160
Sales Discounts 165
Accounts Receivable—Vista Co. 8,325
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–3A
Nov. 3 Merchandise Inventory 63,750
Accounts Payable—Moonlight Co. 63,750
Sales 15,600
[$24,000 – ($24,000 × 35%)] = $15,600.
11 Cost of Merchandise Sold 9,400
Merchandise Inventory 9,400
13 Accounts Payable—Moonlight Co. 50,250
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–3A (Concluded)
Nov. 24 Accounts Receivable—Rabel Co. 56,900
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
6 Sales Returns and Allowances 10,500
Accounts Receivable—Beartooth Co. 10,500
6 Merchandise Inventory 6,300
Cost of Merchandise Sold 6,300
15 Accounts Receivable—Beartooth Co. 58,700
Sales 58,700
15 Accounts Receivable—Beartooth Co. 1,675
Cash 1,675
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–4A (Concluded)
2.
Aug. 1 Merchandise Inventory 48,000
Accounts Payable—Summit Company 48,000
5 Merchandise Inventory 66,000
Accounts Payable—Summit Company 66,000
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–5A
1.
Revenue from sales:
Depreciation expense—store
equipment 40,000
Miscellaneous selling expense 18,000
Total selling expenses $1,008,000
Administrative expenses:
GLOUCESTER CO.
Income Statement
For the Year Ended August 31, 2014
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–5A (Continued)
2.
Retained earnings, September 1, 2013 $550,000
GLOUCESTER CO.
Retained Earnings Statement
For the Year Ended August 31, 2014
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–5A (Continued)
3.
Current assets:
Cash $125,000
Accounts receivable 335,000
Current liabilities:
Accounts payable $193,000
Salaries payable 12,000
Capital stock $125,000
Liabilities
Stockholders’ Equity
GLOUCESTER CO.
Balance Sheet
August 31, 2014
Assets
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–5A (Concluded)
4. a. The multiple-step form of income statement contains various sections for
revenues and expenses, with intermediate balances, and concludes with
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–6A
1.
Revenues:
Net sales $4,517,000
Expenses:
2.
Retained earnings, September 1, 2013 $550,000
Net income for the year $310,000
GLOUCESTER CO.
Retained Earnings Statement
For the Year Ended August 31, 2014
GLOUCESTER CO.
Income Statement
For the Year Ended August 31, 2014
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–6A (Continued)
3.
Current assets: Current liabilities:
Cash $125,000 Accounts payable $193,000
GLOUCESTER CO.
Balance Sheet
August 31, 2014
Assets Liabilities
CHAPTER 5 Accounting for Merchandising Businesses
Prob. 5–6A (Concluded)
4.
2014
Aug. 31 Sales 4,576,000
Income Summary 4,576,000
31 Income Summary 4,266,000
Closing Entries
CHAPTER 5 Accounting for Merchandising Businesses
Appendix Prob. 5–7A
Oct. 1 Purchases 14,448
Accounts Payable—UK Imports Co. 14,448
14 Accounts Payable—Taco Co. 9,100
Cash 8,918
Purchases Discounts 182
19 Purchases 27,300
Accounts Payable—Veggie Co. 27,300
CHAPTER 5 Accounting for Merchandising Businesses
Appendix Prob. 5–8A
Nov. 3 Purchases 63,750
Accounts Payable—Moonlight Co. 63,750
[$24,000 – ($24,000 × 35%)] = $15,600.
13 Accounts Payable—Moonlight Co. 50,250
Cash 49,245
Purchases Discounts 1,005
14 Cash 236,000
CHAPTER 5 Accounting for Merchandising Businesses
Appendix Prob. 5–9A
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
2 Delivery Expense 1,150
Cash 1,150
CHAPTER 5 Accounting for Merchandising Businesses
Appendix Prob. 5–9A (Concluded)
2.
Aug. 1 Purchases 48,000
Accounts Payable—Summit Company 48,000
5 Purchases 66,000
Accounts Payable—Summit Company 66,000
