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    Tutorial #3 - Group 5 - PA1 - Marked

    Uploaded by

    Thanh Nguyen
    - Group 5 students scored poorly on an assignment, with each completing only 2 questions out of 10. - Sample journal entries are provided for sales returns, sales discounts, inventory purchases and sales, cost of goods sold, and equipment disposal. - Multiple-step and single-step income statements are shown for a company. - Inventory records and cost of goods sold calculations are presented using FIFO and LIFO methods. - A worksheet solves for ending inventory and cost of goods sold using given purchase and sales data.

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    © All Rights Reserved
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    Tutorial #3 - Group 5 - PA1 - Marked

    Uploaded by

    Thanh Nguyen
    45 views8 pages
    - Group 5 students scored poorly on an assignment, with each completing only 2 questions out of 10. - Sample journal entries are provided for sales returns, sales discounts, inventory purchases and sales, cost of goods sold, and equipment disposal. - Multiple-step and single-step income statements are shown for a company. - Inventory records and cost of goods sold calculations are presented using FIFO and LIFO methods. - A worksheet solves for ending inventory and cost of goods sold using given purchase and sales data.

    Original Description:

    Principles of Accounting

    Original Title

    Tutorial #3_Group 5_PA1_marked

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    © © All Rights Reserved

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    - Group 5 students scored poorly on an assignment, with each completing only 2 questions out of 10. - Sample journal entries are provided for sales returns, sales discounts, inventory purchases and sales, cost of goods sold, and equipment disposal. - Multiple-step and single-step income statements are shown for a company. - Inventory records and cost of goods sold calculations are presented using FIFO and LIFO methods. - A worksheet solves for ending inventory and cost of goods sold using given purchase and sales data.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    45 views8 pages

    Tutorial #3 - Group 5 - PA1 - Marked

    Uploaded by

    Thanh Nguyen
    - Group 5 students scored poorly on an assignment, with each completing only 2 questions out of 10. - Sample journal entries are provided for sales returns, sales discounts, inventory purchases and sales, cost of goods sold, and equipment disposal. - Multiple-step and single-step income statements are shown for a company. - Inventory records and cost of goods sold calculations are presented using FIFO and LIFO methods. - A worksheet solves for ending inventory and cost of goods sold using given purchase and sales data.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    Group 5

    Individual
    Score /10
    Nguyễn Ngọc Mai Như 2.5
    Nguyễn Trần Thu Hân 2.5
    Mai Châu Thùy Tran 2.5
    Huỳnh Gia Dinh 2.5

    Each one has only completed 2 questions which is unacceptable!


    E5-11B
    1 Sales returns and allowances 205
    Account Receivable 205
    2 1
    3 A 130 sales discount was debited to Sales Revenue
    4 Inventory 300
    Cash 300

    E5-17B
    RINCON COMPANY
    Cost of goods sold
    Inventory, August 1 35,000
    Purchases 300,000
    Sales revenue 500,000
    Less: Purchases Returns and Allow 4,000
    Sales Returns and Allowance 6,000 10,000
    Net Purchase 790,000
    Add: Freight-in 8,500
    Freight-out 5,000
    Cost of goods purchased 803,500
    Costs of goods available for sale 838,500
    Less: Inventory, August 31 45,000
    Cost of goods sold 793,500
    E5-10B
    a) Mutiple-step income statement
    Sales
    Net sales 1,650,000
    Cost of goods sold 922,000
    Gross profit 728,000
    Operating expenses 647,000
    Income from operation 81,000
    Other revenue and gains
    Interest revenue 20,000 20,000
    Other expenses and losses
    Interest expense 49,000
    Loss on disposal of equipment 7,000 56,000
    Net income 45,000

    b) single-step income statement


    Revenue
    Net sales 1,650,000
    Interest revenue 20,000
    Total revenue 1,670,000
    Expenses
    Cost of goods sold 922,000
    Operating expense 647,000
    Interest expenses 49,000
    Loss on disposal of equipment 7,000
    Total expenses 1,625,000
    Net income 45,000

    E5-20B
    a)
    Date Accounts title Dr Cr
    April 5 inventory 30,000
    accounts payable 30,000
    April 6 inventory 800
    cash 800
    April 7 equipment 37,000
    accounts payable 37,000
    April 8 accounts payable 3,000
    inventory 3,000
    April 15 accounts payable 27,000
    inventory 540
    cash 26,460

    b)
    Date Accounts title Dr Cr
    May 5 Accounts payable 27,000
    Cash 27,000
    E6-9B

    Cost Market
    Cameras
    Minolta $900 $1000
    Canon $960 $930
    Total $1860 $1930
    Light meters
    Vivitar $1320 $1440
    Kodak $1820 $1610
    Total $3149 $3050
    Total inventory $5009 $4980

    Beginning inventory (20 X $120)


    Purchases
    July. 12 (35 X $125) $4,375
    July. 19 (15 X $128) 1,920
    July. 26 (40 X $130) 5,200
    Cost of goods available for sale
    Less: Ending inventory (22 X $130)
    Cost of goods sold

    Date Units
    7/1 20
    7/12 35
    7/19 15
    7/26 18
    88

    Cost of goods available for sale


    Less: Ending inventory (20 X $120)
    (2 X $125)
    Cost of goods sold

    Date Units
    7/26 40
    7/19 15
    7/12 33
    88
    (b)
    FIFO $2,860 (ending inventory) + $11,035 (COGS) = $13,895
    LIFO $2,650 (ending inventory) + $11,245 (COGS) = $13,895
    Under both methods, the sum of the ending inventory and cost of goods sold equals the same amount, $13,895
    which is the cost of goods available for sale.
    Lower-of-cost-of-Market

    $900
    $930

    $1320
    $1610

    $4760

    Weygandt Accounting Principles, 12e,


    FIFO
    $ 2,400

    11,495
    13,895
    2,860
    $11,035

    Proof
    Unit Cost Total Cost
    $ 120 $ 2,400
    125 4,375
    128 1,920
    130 2,340
    $11,035

    LIFO
    $13,895

    2,650
    $11,245

    Proof
    Unit Cost Total cost
    130 5200
    128 1920
    125 4125
    11,245

    Cost of goods available for sale


    goods sold equals the same amount, $13,895

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