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ACC 557 Week 4 Chapter 5 (E5 4 E5 8 E5 13 P5 3A) 2015 version
- 1. ACC 557 Week 4 Chapter 5 (E5 4 E5 8 E5 13 P5 3A) Link : http://uopexam.com/product/acc-557-week-4-chapter-5-e5-4-e5-8-e5-13-p5-3a/ Sample content EXERCISE 5-4 (a) June 10 Inventory 7,600 Accounts Payable 7,600
- 2. 11 Inventory 400 Cash 400 12 Accounts Payable 300 Inventory 300 19 Accounts Payable ($7,600 – $300) 7,300 Inventory ($7,300 X 2%) 146 Cash ($7,300 – $146) 7,154 (b) June 10 Accounts Receivable 7,600 Sales Revenue 7,600 Cost of Goods Sold 4,300 Inventory 4,300 12 Sales Returns and Allowances 300 Accounts Receivable 300 Inventory 70 Cost of Goods Sold 70 19 Cash ($7,300 – $146) 7,154 Sales Discounts ($7,300 X 2%) 146 Accounts Receivable
- 3. ($7,600 – $300) 7,300 EXERCISE 5-8 (a) Cost of Goods Sold 600 Inventory 600 (b) Sales Revenue 378,000 Income Summary 378,000 Income Summary 327,600 Cost of Goods Sold ($208,000 + $600) 208,600 Freight-Out 7,000 Insurance Expense 12,000 Rent Expense 20,000 Salaries and Wages Expense 59,000 Sales Discounts 8,000 Sales Returns and Allowances 13,000 Income Summary ($378,000 – $327,600) 50,400 Retained Earnings 50,400 EXERCISE 5-13 (a) (*missing amount) a. Sales revenue $ 90,000) *Sales returns (9,000)
- 4. Net sales $ 81,000) b. Net sales $ 81,000) Cost of goods sold (56,000) *Gross profit $ 25,000) c. Gross profit $ 25,000) Operating expenses (12,000) *Net income $ 13,000) d. *Sales revenue $103,000) Sales returns (5,000) Net sales $98,000) e. Net sales $98,000) *Cost of goods sold 60,500) Gross profit $ 37,500) f. Gross profit $ 37,500) *Operating expenses 22,500) Net income $ 15,000) ) (b) Lee Company Gross profit ÷ Net sales = $25,000 ÷ $81,000 = 30.9%
- 5. Chan Company Gross profit ÷ Net sales = $37,500 ÷ $98,000 = 38.3% PROBLEM 5-3A (a) STARZ DEPARTMENT STORE Income Statement For the Year Ended December 31, 2014 Sales revenues Sales revenue $724,000 Less: Sales returns and allowances 8,000 Net sales 716,000 Cost of goods sold 412,700 Gross profit 303,300 Operating expenses Salaries and wages expense $108,000 Depreciation expense 23,700 Sales commissions expense 14,500 Utilities expense 12,000 Insurance expense 7,200 Property tax expense 4,800
- 6. Total operating expenses 170,200 Income from operations 133,100 Other revenues and gains Interest revenue 4,000 Other expenses and losses Interest expense 8,600 4,600 Net income $ 128,500 STARZ DEPARTMENT STORE Retained Earnings Statement For the Year Ended December 31, 2014 Retained Earnings, January 1 $64,600 Add: Net income 128,500 193,100 Less: Dividends 24,000 Retained Earnings, December 31 $169,100 STARZ DEPARTMENT STORE Balance Sheet December 31, 2014 Assets
- 7. Current assets Cash $ 23,800 Accounts receivable 50,300 Inventory 75,000 Prepaid insurance 2,400 Total current assets $151,500 Property, plant, and equipment Buildings $290,000 Less: Accumulated depreciation— buildings 52,500 237,500 Equipment 110,000 Less: Accumulated depreciation— equipment 42,900 67,100 304,600 Total assets $456,100 STARZ DEPARTMENT STORE Balance Sheet (Continued) December 31, 2014 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 80,300
- 8. Mortgage payable (due next year) 16,000 Interest payable 5,600 Property taxes payable 4,800 Sales commissions payable 4,300 Total current liabilities $111,000 Long-term liabilities Mortgage payable 64,000 Total liabilities 175,000 Stockholders’ equity Common stock 112,000 Retained earnings 169,100 Total stockholders’ equity 281,100 Total liabilities and stockholders’ equity $456,100 (b) Dec. 31 Depreciation Expense 23,700 Accumulated Depreciation— Buildings 10,400 Accumulated Depr http://uopexam.com/product/acc-557-week-4-chapter-5-e5-4-e5-8-e5-13-p5-3a/