HW3 - Homework 3 for Accounting 101 PDF

Preview

Summary

Homework 3 for Accounting 101...

Description

Brief Exercise 5-02 Presented below are the components in Crane Company’s income statement. Determine the missing amounts. Sales Revenue

Cost of Goods Sold

Gross Profit

Operating Expenses

Net Income

(a)

$81,300

$50,700

$30,600

$14,400

$16,200

(b)

$114,500

$78,700

$35,800

$11,000

$24,800

(c)

$156,500

$74,200

$82,300

$44,000

$38,300

(a) Cost of goods sold = $81,300!– $30,600 = $50,700 (Sales rev. – GP = CGS) Operating expenses = $30,600!– $16,200 = $14,400

(b) Gross profit

= $114,500!– $78,700 = $35,800 (Sales. Rev. – CGS = GP)

Operating expenses = $35,800!– $24,800

= $11,000

(c) Sales Revenue = $74,200!+ $82,300 = $156,500 Net income

(GP – Net inc. = Oper. exp.)

(GP – Net inc. = Oper. exp.)

(Cost of gds. sold. + GP = Sales rev.)

= $82,300!– $44,000 = $38,300 (GP – Oper. exp. = Net inc.)

Brief Exercise 5-04 Prepare the journal entries to record the following transactions on Crane Company’s books using a perpetual inventory system. On March 2, Crane Company sold $999,000!of merchandise on account to Blue Company, terms!3/10, n/30. The cost of the merchandise sold was $523,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)! Account Titles and Explanation

Debit

Credit

! Accounts Receivable

! 999,000 

! Sales Revenue 

! 999,000

(To record credit sale) ! Cost of Goods Sold

! 523,000 



! 523,000

Inventory !

(To record cost of merchandise sold) On March 6, Blue Company returned $99,900!of the merchandise purchased on March 2. The cost of the returned merchandise was $55,400. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)! Account Titles and Explanation

Debit

Credit

! Sales Returns and Allowances

! 99,900 



! 99,900

! 55,400 



! 55,400

Accounts Receivable !

(To record merchandise returned) ! Inventory ! Cost of Goods Sold (To record cost of merchandise returned) On March 12, Crane Company received the balance due from Blue Company. Account Titles and Explanation ! Cash ! Sales Discounts ! Accounts Receivable

Debit

Credit

! 872,127 

! 26,973 



! 899,100

Brief Exercise 5-05 Prepare the journal entries to record the following transactions on Swifty Company’s books under a perpetual inventory system. On March 2, Wildhorse Company sold $869,000!of merchandise on account to Swifty Company, terms!3/10, n/30. The cost of the merchandise sold was $612,000. Account Titles and Explanation ! Inventory

Debit

Credit

! 869,000 

Accounts Payable !

! 869,000 

On March 6, Swifty Company returned $86,900!of the merchandise purchased on March 2. The cost of the returned merchandise was $60,500. Account Titles and Explanation

Debit

 Accounts Payable

 86,900 



! 86,900

 Inventory

Credit

On March 12, Wildhorse Company received the balance due from Swifty Company. Account Titles and Explanation

Debit

 Accounts Payable

 782,100 

Credit



Inventory 

 23,463



Cash 

 758,637...