Askew Company uses a periodic inventory system. The June 30,2016, year-end trial balance for the company contained thefollowing information:
Account Debit Credit Merchandiseinventory, 7/1/15 32,300 Sales 383,000 Sales returns 12,300 Purchases 243,000 Purchasediscounts 6,300 Purchasereturns 10,300 Freight-in 17,600
In addition, you determine thatthe June 30, 2016, inventory balance is $40,300.
Required:
1. Calculate the cost of goods sold for the Askew Company for theyear ending June 30, 2016.
2. Prepare the year-end adjusting entry to record cost of goodssold.
Askew Company uses a periodic inventory system. The June 30,2016, year-end trial balance for the company contained thefollowing information: |
| Account | Debit | Credit | ||
| Merchandiseinventory, 7/1/15 | 32,300 | |||
| Sales | 383,000 | |||
| Sales returns | 12,300 | |||
| Purchases | 243,000 | |||
| Purchasediscounts | 6,300 | |||
| Purchasereturns | 10,300 | |||
| Freight-in | 17,600 | |||
| In addition, you determine thatthe June 30, 2016, inventory balance is $40,300. |
| Required: |
| 1. | Calculate the cost of goods sold for the Askew Company for theyear ending June 30, 2016.
|
Related questions
17 accounting 1 questions! HELP
9. The following amounts and costs of platters were availablefor sale by Corpus Christy Ceramics during 2016:
Beginning inventory | 10 units at $41 |
First purchase | 15 units at $55 |
Second purchase | 30 units at $70 |
Third purchase | 25 units at $65 |
Corpus Christy Ceramics has 35 platters on hand at the end ofthe year.
What is the dollar amount of inventory at the end of the yearaccording to the weighted-average cost method?
Select one:
A. $4,340
B. $9,920
C. $3,465
D. $6,200
32. Santa Fe Corporation uses the perpetual inventory method. OnMarch 1, it purchased $60,000 of merchandise inventory, terms 2/10,n/30. On March 3, Santa Fe returned goods (not damaged) that cost$6,000. On March 9, Santa Fe paid the supplier.
On March 9, Santa Fe should credit:
Select one:
A. Purchase discounts for $1,200
B. Purchase discounts for $1,080
C. Inventory for $1,080
D. Inventory for $1,200
33. Rocky Company has beginning equity of $600,000, net incomeof $100,000, dividends of $60,000 and investments by owners inexchange for stock of $20,000. Its ending equity is:
Select one:
A. $660,000
B. $480,000
C. $536,000
D. $446,000
35. On September 1, 2016, Chopper, Inc. reported RetainedEarnings of $272,000. During the month of September, Choppergenerated revenues of $40,000, incurred expenses of $24,000,purchased equipment for $10,000 and paid dividends of $12,000.
What is the balance in Retained Earnings on September 30,2016?
Select one:
A. $272,000 debit
B. $276,000 credit
C. $ 16,000 credit
D. $274,000 credit
36. Savannah Company purchases $120,000 of inventory during theperiod and sells $36,000 of it for $60,000. Beginning of the periodinventory was $6,000.
What is the companyâs inventory balance to be reported on itsbalance sheet at year end?
Select one:
A. $36,000
B. $90,000
C. $ 4,000
D. $ 6,000
37. Assuming rising prices, which method will give the highestdollar value for cost of goods sold on the income statement?
Select one:
A. FIFO
B. Average Cost
C. LIFO
D. All of these give equal values for cost of goods sold
38. Kali Company began the period with $20,000 in inventory. Thecompany also purchased an additional $20,000 of inventory andreturned $2,000 for a full credit. A physical count of theinventory at yearâend revealed an inventory on hand of $16,000.What was Kaliâs cost of goods sold for the period?
Select one:
a. $50,000
b. $22,000
c. $48,000
d. $16,000
39. The periodic inventory system differs from the perpetualinventory system:
Select one:
because the periodic system is not compatible with moderntechnology.
because the periodic system continually updates inventory, whilethe perpetual inventory system only updates inventory at the end ofthe period.
because the perpetual system continually updates inventory,while the periodic inventory system only updates inventory at theend of the period.
because the periodic system is more complex and costly.
40. Which one of the following is included in currentassets?
Select one:
A. Common stock
B. Accounts receivable
C. Taxes payable
D. Automobiles
41. For the balance sheet to be in balance, the following mustexist:
Select one:
Total assets must be less than total liabilities
Total assets must be greater than total liabilities
Total assets must equal total liabilities plus stockholders'equity
Total liabilities must equal total stockholders' equity
43. Using a perpetual inventory system, the buyerâs journalentry to record the freight costs includes a:
Select one:
A. Debit to Purchases
B. Debit to Inventory
C. Debit to Freight In
D. Debit to Cost of Goods Sold
44. Joshua records purchases at invoice price and uses theperpetual inventory system. On July 5, Joshua returned $6,000 ofgoods purchased on account to the seller.
How would Joshua record this transaction?
Select one:
A.
Accounts Payable | 6,000 | ||
Purchases | 6,000 | ||
B.
Accounts Receivable | 6,000 | ||
Inventory | 6,000 | ||
C.
Accounts Payable | 6,000 | ||
Inventory | 6,000 | ||
D.
Cash | 6,000 | ||
Purchases | 6,000 | ||
45. Smith & Sons purchased $5,000 of merchandise from theClaremont Company with terms of 3/10, n/30. How much discount isSmith & Sons entitled to take if it pays within the alloweddiscount period of 10 days?
Select one:
$100
$50
$300
$150
46. The accounting record for Max III Company reported thefollowing selected information:
Operating Expenses | $180,000 |
Sales Returns and Allowances | 52,000 |
Sales Discounts | 24,000 |
Sales Revenue | 700,000 |
Cost of Goods Sold | 268,000 |
Determine Max III Company's gross profit.
Select one:
A. $332,000
B. $280,000
C. $308,000
D. $356,000
48. Using a a perpetual inventory system, the sellerâs journalentry to record the payment for merchandise, received from thebuyer, within the discount period includes a:
Select one:
A. Debit to Accounts Receivable
B. Debit to Cost of Goods Sold
C. Credit to Sales Discounts
D. Debit to Sales Discounts
49.Geraldoâs Groceries purchased milk cartons at an invoiceprice of $6,000 and terms of 2/10, n/30. On arrival of the goods,Geraldoâs realized that half of the milk was past the expirationdate, and returned them immediately to the supplier.
If Geraldoâs pays the remaining amount of the invoice within thediscount period, the amount paid should be:
Select one:
A. $2,880
B. $5,880
C. $2,940
D. $6,000
50. Which one of the following is not a current liability?
Select one:
A. Wages payable
B. Accounts payable
C. Wage expense
D. Taxes payable
Problem 3-4 (Part Level Submission)
The trial balance of Oriole Fashion Center contained thefollowing accounts at November 30, the end of the companyâs fiscalyear.
ORIOLE FASHION CENTER | ||||||
Debit | Credit | |||||
| Cash | $33,780 | |||||
| Accounts Receivable | 37,420 | |||||
| Inventory | 48,720 | |||||
| Supplies | 9,220 | |||||
| Equipment | 140,440 | |||||
| Accumulated Depreciation-Equipment | $26,720 | |||||
| Notes Payable | 54,720 | |||||
| Accounts Payable | 52,220 | |||||
| Common Stock | 93,720 | |||||
| Retained Earnings | 11,720 | |||||
| Sales Revenue | 766,000 | |||||
| Sales Returns and Allowances | 4,200 | |||||
| Cost of Goods Sold | 495,400 | |||||
| Salaries and Wages Expense | 138,040 | |||||
| Advertising Expense | 27,760 | |||||
| Utilities Expenses | 15,960 | |||||
| Maintenance and Repairs Expense | 12,100 | |||||
| Delivery Expense | 16,700 | |||||
| Rent Expense | 25,360 | |||||
| Totals | $1,005,100 | $1,005,100 | ||||
Adjustment data:
| 1. | Supplies on hand totaled $5,220. | |
| 2. | Depreciation is $17,040 on the equipment. | |
| 3. | Interest of $12,030 is accrued on notes payable on November30. |
Other data:
| 1. | Salaries expense is 70% selling and 30% administrative. | |
| 2. | Rent expense and utility expenses are 80% selling and 20%administrative. | |
| 3. | $30,000 of notes payable are due for payment next year. | |
| 4. | Maintenance and repairs expense is 100% administrative. |
a) Journalize the adjusting transactions
b) Prepare an adjusted trial balance
c1) Prepare a multi-step Income statement
