Accounting for Merchandising Operations

Financial information is presented below for three different companies.

Instructions

Determine the missing amounts.

Presented below are selected accounts for McPhan Company as reported in the worksheet using a perpetual inventory system at the end of May 2019

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

The trial balance columns of the worksheet using a perpetual inventory system for Balistreri Company at June 30, 2019, are as follows

Balistreri Company
Worksheet
For the Month Ended June 30, 2019

Other data:
Operating expenses incurred on account, but not yet recorded, total $1,500

Instructions

Enter the trial balance on a worksheet and compete the worksheet.

The trial balance of A. Wiencek Company at the end of its fiscal year, August 31, 2019, includes these accounts: Inventory $19,500; Purchases $149,000; Sales Revenue $190,000; Freight-in $5,000; Sales Returns and Allowances $3,000; Freight-Out $1,000; and Purchase Returns and Allowances $2,000. Then ending inventory is $23,000.

Instructions

Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).

On January 1, 2019, Brooke Hanson Corporation had inventory of $50,000. At December 31, 2019, Brooks Hanson had the following account balances.

Freight-in	$4,000
Purchases	509,000
Purchase discounts	6,000
Purchase returns and allowances	2,000
Sales Revenue	840,000
Sales discounts	5,000
Sales returns and allowances	10,000

At December 31, 2019, Brooke Hanson determines that its ending inventory is $60,000.

Instructions

Compute Brooke Hanson's 2019 gross profit.
Compute Brooke Hanson's 2019 operating expenses if net income is $130,000 and there are no non operating activities.

Below is a series of cost of goods sold sections for companies B, F, L, and R.

Instructions

Fill in the lettered blanks to complete the cost of goods sold sections.

This information relates to Nandi Co.

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.

This information relates to Chung Co.

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.

Presented below are selected accounts for T. Swift Company as reported in the worksheet at the end of May 2019. Ending inventory is $75,000

Instructions

Complete the worksheet by extending amounts reported in the adjustment trial balance to the appropriate columns in the worksheet. The company uses the periodic inventory system.

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Accounting for Merchandising Operations

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Problems: Accounting for Merchandising Operations

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