CHAPTER 6 Accounting for Merchandising Businesses
Appendix Ex. 6–39
Jan. 2 Merchandise Inventory 18,200
Accounts Payable 18,200
5 Merchandise Inventory 190
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Ex. 6–40
Dec. 31 Merchandise Inventory 460,000
Sales 2,300,000
Closing Entries
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–1A
Oct. 1 Merchandise Inventory 14,448
Accounts Payable—UK Imports Co. 14,448
19 Merchandise Inventory 27,300
Accounts Payable—Veggie Co. 27,300
PROBLEMS
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–2A
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 6 Accounting for Merchandising Businesses
Prob. 6–2A (Concluded)
Mar. 18 Sales Returns and Allowances 4,800
Accounts Receivable—Targhee Co. 4,800
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–3A
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 6 Accounting for Merchandising Businesses
Prob. 6–3A (Concluded)
Nov. 24 Accounts Receivable—Rabel Co. 56,900
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–4A
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
1 Cost of Merchandise Sold 28,800
Merchandise Inventory 28,800
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–4A (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 6 Accounting for Merchandising Businesses
Prob. 6–5A
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 6 Accounting for Merchandising Businesses
Prob. 6–5A (Continued)
2.
Mia Reynolds, capital, September 1, 2013 $675,000
GLOUCESTER CO.
Statement of Owner’s Equity
For the Year Ended August 31, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5A (Continued)
3.
Current assets:
Cash $125,000
Current liabilities:
Accounts payable $193,000
Liabilities
GLOUCESTER CO.
Balance Sheet
August 31, 2014
Assets
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5A (Concluded)
4. a. The multiple-step form of income statement contains various sections for
revenues and expenses, with intermediate balances, and concludes with
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6A
1.
Revenues:
Net sales $4,517,000
2.
Mia Reynolds, capital, September 1, 2013 $675,000
Net income for the year $310,000
GLOUCESTER CO.
Statement of Owner’s Equity
For the Year Ended August 31, 2014
GLOUCESTER CO.
Income Statement
For the Year Ended August 31, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6A (Continued)
3.
Current assets: Current liabilities:
Cash $125,000 Accounts payable $193,000
GLOUCESTER CO.
Balance Sheet
August 31, 2014
Assets Liabilities
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6A (Concluded)
4.
2014
Aug. 31 Sales 4,576,000
Income Summary 4,576,000
Closing Entries
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–7A
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 6 Accounting for Merchandising Businesses
Appendix Prob. 6–8A
Nov. 3 Purchases 63,750
Accounts Payable—Moonlight Co. 63,750
13 Accounts Payable—Moonlight Co. 50,250
Cash 49,245
Purchases Discounts 1,005
14 Cash 236,000
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–9A
1.
Aug. 1 Accounts Receivable—Beartooth Co. 48,000
Sales 48,000
2 Delivery Expense 1,150
Cash 1,150
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–9A (Concluded)
2.
Aug. 1 Purchases 48,000
Accounts Payable—Summit Company 48,000
5 Purchases 66,000
Accounts Payable—Summit Company 66,000