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    PA10 Nguyen Ngoc Thanh Nhi HW CH5

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    Minh Anh Nguyễn
    This document contains sample journal entries for a merchandising company for the month of June. It records purchases and sales of inventory on credit and for cash. Key events include the purchase and sale of inventory, recording of returns and allowances, and payment of accounts payable. The journal entries maintain the accounting equation and track changes to asset, liability, revenue and expense accounts over the period.

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    PA10 Nguyen Ngoc Thanh Nhi HW CH5

    Uploaded by

    Minh Anh Nguyễn
    24 views4 pages
    This document contains sample journal entries for a merchandising company for the month of June. It records purchases and sales of inventory on credit and for cash. Key events include the purchase and sale of inventory, recording of returns and allowances, and payment of accounts payable. The journal entries maintain the accounting equation and track changes to asset, liability, revenue and expense accounts over the period.

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    This document contains sample journal entries for a merchandising company for the month of June. It records purchases and sales of inventory on credit and for cash. Key events include the purchase and sale of inventory, recording of returns and allowances, and payment of accounts payable. The journal entries maintain the accounting equation and track changes to asset, liability, revenue and expense accounts over the period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views4 pages

    PA10 Nguyen Ngoc Thanh Nhi HW CH5

    Uploaded by

    Minh Anh Nguyễn
    This document contains sample journal entries for a merchandising company for the month of June. It records purchases and sales of inventory on credit and for cash. Key events include the purchase and sale of inventory, recording of returns and allowances, and payment of accounts payable. The journal entries maintain the accounting equation and track changes to asset, liability, revenue and expense accounts over the period.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    CHAPTER 5: Accouting for Merchandising Operations

    E5-1

    1. True
    2. Fasle
     Correct: sales less sost of goods sold is called gross profit
    3. True
    4. True
    5. False
     Correct: The operating cycle of a merchandiser is longer than of a service company
    with the added assest account is inventory account
    6. False
     Correct: In a periodic inventory system, no detailed inventory records of goods on
    hand are maintained
    7. True
    8. False
     Correct: A perpetual inventory system provides better control over inventories than
    a periodic system.

    E5-9

    a)

    KAILA COMPANY
    Income Statement
    For the Month Ended March 31, 2017
    Sales
    Sales revenue $380,000
    Less: Sales returns and allowances $13,000
    Sales discounts 8,000 21,000
    Net sales 359,000
    Cost of goods sold 215,000
    Gross profit 144,000
    Operating expenses
    Salaries and wages expense 58,000
    Rent expense 30,000
    Freight-out 7,000
    Insurance expense 6,000
    Total operating expense 101,000
    Net income $43,000

    Gross profit $ 144,000


    b) Gross profit rate = = x100% = 40,11%
    Net sales $ 359,000

    E5-10

    a)

    ANHAD COMPANY
    Income Statement
    For the Year Ended December 31, 2017
    Sales
    Net sales $2,200,000
    Cost of goods sold 1,289,000
    Gross profit 911,000
    Operating expenses 725,000
    Income from operations 186,000
    Other revenue and gains
    Interest revenue 28,000
    Other expenses and losses
    Interest expense $70,000
    Loss on disposal of plant assets 17,000 87,000
    Net income $127,000

    b)

    ANHAD COMPANY
    Income Statement
    For the Year Ended December 31, 2017
    Revenues
    Net sales $2,200,000
    Interest revenue 28,000
    Total revenues 2,228,000
    Expenses
    Cost of goods sold $1,289,000
    Operating expenses 725,000
    Interest expense 70,000
    Loss on disposal of plant assests 17,000
    Total expenses 2,101,000
    Net income $127,000

    P5-1A

    GENERAL JOURNAL J1
    Date Account Titles and Explanation Ref. Debit Credit
    June 1 Inventory 120 1,600
    Accounts Payable 201 1,600

    3 Accounts Receivable 112 2,500


    Sales Revenue 401 2,500

    Cost of Goods Sold 505 1,440


    Inventory 120 1,440

    6 Accounts Payable 201 100


    Sales Returns and Allowances 412 100

    9 Accounts Payable 201 1,500


    Inventory 120 30
    Cash 101 1,470

    15 Cash 101 2,500


    Accounts Receivable 112 2,500

    17 Accounts Receivable 112 1,800


    Sales Revenue 401 1,800

    Cost of Goods Sold 505 1,080


    Inventory 120 1,080

    20 Inventory 120 1,800


    Accounts Payable 201 1,800

    24 Cash 101 1,800


    Accounts Receivable 112 1,800

    26 Accounts Payable 201 1,800


    Inventory 120 36
    Cash 101 1,764

    28 Accounts Receivable 112 1,600


    Sales Revenue 401 1,600
    Cost of Goods Sold 505 970
    Inventory 120 970

    30 Sales Returns and Allowances 412 120


    Sales Revenue 401 120

    Inventory 120 72
    Cost of Goods Sold 505 72

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