CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–10A
1. Periodic inventory system. Wyman Company uses a periodic inventory
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–10A (Continued)
2.
Revenue from sales:
Sales $3,355,000
Cost of merchandise available for sale $2,825,000
Less merchandise inventor
y
, 305,000
December 31, 2014
Administrative expenses:
Office salaries expense $ 175,000
Rent expense 28,000
Insurance expense 3,000
Office supplies expense 2,000
WYMAN COMPANY
Income Statement
For the Year Ended December 31, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–10A (Concluded)
3. Merchandise Inventory 305,000
Sales 3,355,000
Purchases Returns and Allowances 93,000
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–1B
Mar. 1 Merchandise Inventory 43,900
Accounts Payable—Haas Co. 43,900
Accounts Payable—Fairhurst Company 13,560
18 Merchandise Inventory 140
Cash 140
19 Merchandise Inventory 6,500
Accounts Payable—Bickle Co. 6,500
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–2B
July 1 Accounts Receivable—Landscapes Co. 33,450
Sales 33,450
Merchandise Inventory 10,000
8 Cash 120,960
Sales 112,000
Sales Tax Payable 8,960
8 Cost of Merchandise Sold 67,200
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–2B (Concluded)
July 16 Sales Returns and Allowances 3,000
Accounts Receivable—Loeb Co. 3,000
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–3B
July 3 Merchandise Inventory 62,650
Accounts Payable—Hamling Co. 62,650
Merchandise Inventory 6,850
13 Accounts Payable—Hamling Co. 62,650
Cash 61,426
Merchandise Inventory 1,224
15 Accounts Payable—Kester Co. 26,600
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–3B (Concluded)
July 23 Cash 91,200
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–4B
1.
Apr. 2 Accounts Receivable—Bird Company 32,000
Sales 32,000
2 Accounts Receivable—Bird Company 330
Cash 330
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–4B (Concluded)
2.
Apr. 2 Merchandise Inventory 32,330
Accounts Payable—Swan Company 32,330
$32,000 + $330 = $32,330.
8 Merchandise Inventory 49,500
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5B
1.
Revenue from sales:
Depreciation expense—store
equipment 33,000
Miscellaneous selling expense 18,000
Total selling expenses $1,321,000
Administrative expenses:
KANPUR CO.
Income Statement
For the Year Ended June 30, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5B (Continued)
2.
Gerri Faber, capital, July 1, 2013 $ 431,000
KANPUR CO.
Statement of Owner’s Equity
For the Year Ended June 30, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5B (Continued)
3.
Current assets:
Cash $ 92,000
Property, plant, and equipment:
Office equipment $220,000
Less accumulated depreciation 58,000 $162,000
Current liabilities:
Accounts payable $ 48,500
Salaries payable 4,000
Liabilities
KANPUR CO.
Balance Sheet
June 30, 2014
Assets
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–5B (Concluded)
4. a. The multiple-step form of income statement contains various sections for
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6B
1.
Revenues:
Net sales $8,925,000
Expenses:
2.
Gerri Faber, capital, July 1, 2013 $ 431,000
KANPUR CO.
Statement of Owner’s Equity
For the Year Ended June 30, 2014
KANPUR CO.
Income Statement
For the Year Ended June 30, 2014
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6B (Continued)
3.
Current assets: Current liabilities:
Cash $ 92,000 Accounts payable $48,500
KANPUR CO.
Balance Sheet
June 30, 2014
Assets Liabilities
CHAPTER 6 Accounting for Merchandising Businesses
Prob. 6–6B (Concluded)
4.
2014
June 30 Sales 9,175,000
Income Summary 9,175,000
Closing Entries
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–7B
Mar. 1 Purchases 43,250
Freight In 650
Accounts Payable—Haas Co. 43,900
18 Freight In 140
Cash 140
19 Purchases 6,500
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–8B
July 3 Purchases 61,200
Freight In 1,450
Accounts Payable—Hamling Co. 62,650
13 Accounts Payable—Hamling Co. 62,650
Cash 61,426
Purchases Discounts 1,224
15 Accounts Payable—Kester Co. 26,600
Cash 26,068
Purchases Discounts 532
CHAPTER 6 Accounting for Merchandising Businesses
Appendix Prob. 6–9B
1.
Apr. 2 Accounts Receivable—Bird Company 32,000
Sales 32,000
2 Accounts Receivable—Bird Company 330
Cash 330