Financial accounting sem3 act PDF

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SEMINAR 3

KASNORU is a firm that has done the following transactions related to product M during October: October 1st: Opening balance on the merchandise inventory account, 3,000 units. The acquisition price was 2.75€/u. October 2nd: Purchase of merchandise for cash. Number of units: 1.500. Acquisition price: 2.80€/u. In the invoice we can see a discount for prompt payment of 2% and transportation costs for 600€. October 6th: Sales for cash, 2,000 units. The selling price per unit is 4€. There is a discount for prompt payment of 3%. The corresponding merchandise was carried in inventory at a cost of €5,500. October 7th: Purchase of inventories on credit, 4,000 units at an acquisition cost of 2.30€/u. The commission of the trade agent is 5%. October 10th: Sales on credit of 1,300 units with a selling price of 4,25€ per unit. The seller pays the transportation costs: 90€. This merchandise has a corresponding acquisition cost of €3,692. October 11th: The customer of the previous sale returns 300 units because of a delay on the date of the delivery. These units could be sold because they are in perfect conditions. The acquisition cost of the units returned was €942. October 15th: In order to sale more, the firm offers a 3 x 2 promotion. Sales of 1,800 units on credit at a selling price or 4,80€/u. The gift is 900 units. The acquisition cost of this offer is €7,608. October 18th: The customer of the previous sale wants to pay before the normal period. The firm benefit the customer with a discount of 1,5% for prompt payment. October 22nd: Purchase of merchandise on credit: 1,500 units at an acquisition cost of 2.6€/u. In the invoice appears a discount of 4% because of a delay on the delivery. October 24th: Sales of 1,000 units at a selling price of 5€/u. The customer accepts a note of exchange. The acquisition cost of the merchandise sold was €2,415. October 25th: The company grants the customers with a quantity discount of €800. October 27th: Payment of the acquisition made in October 22nd. The firm benefits from a discount of 1% for prompt payment. October 30th: Purchase of inventories, 3,000 units at an acquisition price of 2.40€/u. The firm accepts a note.

October 31st: The supplier offers a quantity discount of €600. The physical count of the merchandise inventory at the end of the month results in an amount of €14,200. Required: x

x

Prepare the journal entries for the listed transactions and post the entries to the ledger accounts assuming: a) a permanent inventory system, b) a periodic inventory system. Calculate the gross margin and the income of the period....