Student Name:
Class:
Number of Unit Ending
Date Transaction Units Cost Inventory
Oct. 1 1 900$ 900$
Number of Unit Ending
Date Transaction Units Cost Inventory
Number of Unit Cost of
Purchase
Beginning Inventory
Purchase
Purchase
Oct. 20 1 920$ 920$
Purchase
Problem 06-01
McGraw-Hill/Irwin
Instructor
Specific Identification Method
SANDRA‘S PURSE BOUTIQUE
FIFO Method
Requirement 2:
Requirement 1:
Beginning Inventory
Number of Unit Cost of
Beginning Inventory
Purchase
Purchase
Purchase
Beginning Inventory
Purchase
Student Name:
Class:
Problem 06-01
McGraw-Hill/Irwin
Instructor
Number of Unit Ending
Date Transaction Units Cost Inventory
Oct. 1 6 900$ 5,400$
Number of Unit Ending
Date Transaction Units Cost Inventory
Cost of Goods Sold
Ending Inventory
Average Cost
Purchase
Purchase
Oct. 1 6 900$ 5,400$
Oct. 10 5 910 4,550
Beginning Inventory
Purchase
Beginning Inventory
Weighted Average Method
LIFO Method
Requirement 4:
Requirement 3:
Number of Unit Cost of
Purchase
Purchase
Purchase
Purchase
Cost per Total
Date Transactions Units Unit Cost
October 1 6 900$ 5,400$
October 4 4
Beginning inventory
Sale
October Transactions
SANDRA‘S PURSE BOUTIQUE
Given Data P06-01:
Purchase
Purchase
Sale
Purchase
Sale
Student Name:
Class:
Date Account Debit Credit
(Record cost of inventory sold)
(Receive cash on account)
(Purchase inventory on account)
Inventory
Accounts Payable
Cash
Accounts Receivable
Cost of Goods Sold
Inventory
July 3 2,300
2,300 <–Correct!
July 11 2,100 <–Correct!
21
Cash 2,079
July 12 5,800
5,800 <–Correct!
(Pay on account less 1% discount)
(Sell inventory on account)
Accounts Receivable
(Purchase inventory on account)
Problem 06-03
Requirement 1:
Sales Revenue
Instructor
Inventory
Inventory
Accounts Payable
CD CITY
Transaction Entries
McGraw-Hill/Irwin
Accounts Payable
(Return inventory on account)
(Pay freight-in)
Inventory
Accounts Payable
Cash
Inventory
Cost of goods sold
July 22 4,200
4,200 <–Correct!
10,000$
Net sales
Requirement 2:
(Sell inventory for cash)
Cash
For the month of July
Multiple-step Income Statement (partial)
CD CITY
Sales Revenue
(Pay cash on account)
(Return inventory on account)
Cost of Goods Sold
(Record cost of inventory sold)
Cash
Accounts Payable
Inventory
Accounts Payable
Inventory
July 3 2,300$
July 4 110$
July 9 200$
July 11
?
Pay July 3 purchase in full
CD CITY
Return incorrectly ordered CDs
July Transactions
Given Data P06-03:
Pay freight charges on July 3 purchase
Purchased CDs on account, terms 1/10,n/30
July 12 5,800$
?
July 18 3,100$
?
Sell CDs on account
Cost of CDs sold
Inventory at beginning of July
Cost of CDs sold
Pay July 18 purchase in full
Return CDs purchased July 18
Sell CDs for cash
Purchased CDs on account, terms 1/10,n/30
Receive payment on CDs sold July 12
Student Name:
Class:
69,800$
(1,100)
68,700$
28,700
40,000
Requirement 3:
=
=
=
28,700$
1,700$ 16.9
Correct!
Gross Profit
Requirement 2:
Inventory turnover ratio
Requirement 1:
Net sales:
Total sales revenue
Less: Sales returns
BASKIN-ROBBINS
Multiple-step Income Statement
For the month of July, 2021
Net sales revenue
Cost of goods sold
Problem 06-07
McGraw-Hill/Irwin
Instructor
=
=
Cost of goods sold
Average inventory
=
16,000
18,900
Income before income taxes
Operating Income
Non-operating items:
Income tax expense
Utilities
Rent
Salaries
Operating Expenses:
Interest income
Interest expense
13,700$ 69,800$
Sales revenue
Salaries expense
July, 2021
Account Balances
BASKIN-ROBBINS
Given Data P06-07:
Interest income
Cost of goods sold
Rent expense
Interest expense
Inventory (July 31, 2021)
Inventory (July 1, 2021)
Sales returns
Utilities expense
Income tax expense