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E6-11 Reporting Net Sales with Credit Sales and Sa...

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E6-11 Reporting Net Sales with Credit Sales and Sales Discounts [LO6] The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $670. 15 Sold merchandise to Claudio's Chair Company at a selling price of $5,900 on terms 3/10, n/30. The goods cost Evergreen Company $3,953. 20 Sold merchandise to Otto's Ottomans at a selling price of $4,900 on terms 3/10, n/30. The goods cost Evergreen Company $3,283. 23 Collected payment from Claudio's Chair Company from the July 15 sale. Aug. 25 Collected payment from Otto's Ottomans from the July 20 sale.,Enter your follow up question here...,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Q2) (a) Ebert Electronics distributes consumer electronics. One product has been selected for use in this case. Assume the completion of the following summarized transactions during the month of March 2008 in the order given. All transactions involved cash. Units Unit Cost Beginning inventory (March 1) 11 $200 New inventory purchases (March 15) 5 208 Sales (March 19) (selling price, $420) 12 ? New inventory purchases (March 21) 9 220 Compute the following amounts using the FIFO and LIFO methods applied on a perpetual basis Answer:- FIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value LIFO Perpetual Calculation Date Purchases Sales COGS Balance Qty Unit price Value Qty Unit price Value Avg. price Value Qty Avg. price Value (b)Which method of Inventory Valuation do you recommend and why? Q3) Kat Bardash, a student at a small state college, has just received her first checking account statement for the month ended September 30. This is her first chance to attempt bank reconciliation. The bank?s statement of account shows the following information: Bank balance, September 1 $1,150 Deposits during September 650 Checks cleared during September 900 Bank service charge 25 Interest earned 5 Bank balance, September 30 880 Kat is surprised that her bank has not yet reported the $50 deposit that she made on September 29 and pleased that her $200 rent check has not yet cleared her account. Her September 30 checkbook balance is $750. Required: 1. Complete Kat?s bank reconciliation. What adjustments, if any, does she need to make in her checkbook? 2. Why is it important for individuals and businesses to prepare bank reconciliation each month? Answer:-,Enter your follow up question here...

 

Paper#6573 | Written in 18-Jul-2015

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