Worksheet
For the Month Ended June 30, 2019
Operating expenses incurred on account, but not yet recorded, total $1,500
Instructions
Enter the trial balance on a worksheet and compete the worksheet.
Read more: Problem-23: Accounting for Merchandising Operations
Instructions
- Prepare a multiple-step income statement
- Compute the gross profit rate.
Read more: Problem-16: Accounting for Merchandising Operations
| Operating expenses | $725,000 | Interest revenue | $28,000 |
| Cost of goods sold | 1,289,000 | Loss on disposal of plant assets | 17,000 |
| Interest expense | 70,000 | Net sales | 2,200,000 |
Instructions
- Prepare a multiple-step income statement.
- Prepare a single-step income statement.
Read more: Problem-17: Accounting for Merchandising Operations
- A $210 refund to a customer for faulty merchandise was debited to Sales revenue $210 and credited to Cash $210.
- A $180 credit purchase of supplies was debited to inventory $180 and credited to Cash $180.
- A $215 sales discount was debited to Sales Revenue
- A cash payment of $20 for freight on merchandise purchase was debited to Freight-out $200 and credited to Cash $200
Instructions
Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Omit explanations.)
Read more: Problem-18: Accounting for Merchandising Operations
Instructions
- Compute Laquen's gross profit.
- Compute the gross profit rate. Why is this rate computed by financial statement users?.
- What is Laquen's income from operations and net income?
- If Laquen prepared a single-step income statement, what amount would it report for et income?
- In what section of its classified balance sheet should Laqen report inventory?
Read more: Problem-19: Accounting for Merchandising Operations
Instructions
- Determine the missing amounts.
- Determine the gross profit rates. (Round to one decimal place.)
Read more: Problem-20: Accounting for Merchandising Operations
Instructions
Read more: Problem-21: Accounting for Merchandising Operations
Instructions
Complete the worksheet by extending amounts reported in the adjusted trial balance to the appropriate columns in the worksheet. Do not total individual columns
Read more: Problem-22: Accounting for Merchandising Operations
- On April 5, purchased merchandise from Jose Company for $21,000, terms 2/10 net/30, FOB shipping point.
- On April 6, paid freight costs of $800 on merchandise purchased from Jose company
- On April 7, purchased equipment on account from Winker Mfg. Co. for $26,000.
- On April 8, returned merchandise, which cost $4,000 to Jose Company
- On April 15, paid the amount due to Jose Company in full.
Instructions
- Prepare the journal entries to record these transactions on the books of Chung Co. using a periodic inventory system.
- Assume that Chung Co. paid the balance due to Jose Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Read more: Problem-28: Accounting for Merchandising Operations
- On April 5, purchased merchandise from Dion Company for $25,000, terms 2/10 net/30, FOB shipping point.
- On April 6, paid freight costs of $900 on merchandise purchased from Dion company
- On April 7, purchased equipment on account for $30,000.
- On April 8, returned some of April 5 merchandise, which cost $2,800 to Dion Company
- On April 15, paid the amount due to Dion Company in full.
Instructions
- Prepare the journal entries to record these transactions on the books of Nandi Co. using a periodic inventory system.
- Assume that Nandi Co. paid the balance due to Dion Company on May 4 instead of April 15. Prepare the journal entry to record this payment.
Read more: Problem-27: Accounting for Merchandising Operations