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"Olaf Distributing Company completed the following...




"Olaf Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and Common Stock of $9,000. April 2 Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30. 4 Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30.The cost of the merchandise sold was $4,100. 5 Paid $240 freight on April 4 sale. 6 Received credit from Dakota Supply Co. for merchandise returned $500. 11 Paid Dakota Supply Co. in full, less discount. 13 Received collections in full, less discounts, from customers billed on April 4. 14 Purchased merchandise for cash $3,800. 16 Received refund from supplier for returned goods on cash purchase of April 14, $500. 18 Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point, terms 2/10, n/30. 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $6,400.The merchandise sold had a cost of $5,120. 26 Purchased merchandise for cash $2,300. 27 Paid Skywalker Distributors in full, less discount. 29 Made refunds to cash customers for defective merchandise $90. The returned merchandise had a scrap value of $30. 30 Sold merchandise on account $3,700, terms n/30.The cost of the merchandise sold was $2,800. Olaf Company's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 505 Cost of Goods Sold, and No. 644 Freight-out Journalize the transactions using a perpetual inventory system. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.) Prepare the income statement through gross profit for the month of April 2008. (List amounts from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) OLAF DISTRIBUTING COMPANY Income Statement (Partial) For the Month Ended April 30, 2008 P-3A - Maine Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 2008, the following accounts appeared in two of its trial balances. Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $79,300 $79,300 Interest Revenue $4,000 $4,000 Accounts Receivable 50,300 50,300 Merchandise Inventory 75,000 75,000 Accumulated Depr. - Building 42,100 52,500 Mortgage Payable 80,000 80,000 Accumulated Depr. - Equipment 29,600 42,900 Office Salaries Expense 32,000 32,000 Building 190,000 190,000 Prepaid Insurance 9,600 2,400 Cash 23,800 23,800 Property Tax Expense 4,800 Common Stock 116,600 116,600 Property Taxes Payable 4,800 Cost of Goods Sold 412,700 412,700 Retained Earnings 60,000 60,000 Depr. Expense - Building 10,400 Sales Salaries Expense 76,000 76,000 Depr. Expense- Equipment 13,300 Sales 628,000 628,000 Dividends 28,000 28,000 Sales Commissions Expense 10,200 14,500 Equipment 110,000 110,000 Sales Commissions Payable 4,300 Insurance Expense 7,200 Sales Returns and Allowances 8,000 8,000 Interest Expense 3,000 11,000 Utilities Expense 11,000 12,000 Interest Payable 8,000 Utilities Expense Payable 1,000 Analysis reveals the following additional data. 1. Insurance Expense and utilities Expense are 60% selling and 40% administrative. 2. $20,000 of the mortgage Payable is due for payment next year. 3. Depreciation on the building and property Tax Expense are administrative Expenses; depreciation on the equipment is a selling Expense. Complete a multiple-step income statement, a retained earnings statement, and a classified balance sheet. (List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically. List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.) MAINE DEPARTMENT STORE Income Statement For the Year Ended December 31, 2008 MAINE DEPARTMENT STORE Retained Earnings Statement For the Year Ended December 31, 2008 Journalize the adjusting entries that were made. Journalize the closing entries that are necessary. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) P6-1A Heath Limited is trying to determine the value of its ending inventory at February 29, 2008, the company?s year end. The accountant counted everything that was in the warehouse as of February 29, which resulted in an ending inventory valuation of $48,000. However, she didn?t know how to treat the following transactions so she didn?t record them. a. On February 26, Heath shipped to a customer goods costing $800. The goods were shipped FOB shipping point, and the receiving report indicates that the customer received the goods on March 2. b. On February 26, Seller Inc. shipped goods to Heath FOB destination. The invoice price was $350. The receiving report indicates that the goods were received by Heath on March 2. c. Heath had $500 of inventory at a customer?s warehouse ?on approval.? The customer was going to let Heath know whether it wanted the merchandise by the end of the week, March 4. d. Heath also had $400 of inventory on consignment at a Jasper craft shop. e. On February 26, Heath ordered goods costing $750. The goods were shipped FOB shipping point on February 27. Heath received the goods on March 1. f. On February 29, Heath packaged goods and had them ready for shipping to a customer FOB destination. The invoice price was $350; the cost of the items was $250. The receiving report indicates that the goods were received by the customer on March 2. g. Heath had damaged goods set aside in the warehouse because they are no longer saleable. These goods originally cost $400 and, originally, Heath expected to sell these items for $600. Instructions For each of the above transactions, specify whether the item in question should be included in ending inventory, and if so, at what amount. (If the item should not be included in ending inventory, put 0 for the amount.) P6-3A Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20 600 units @ $9 Aug. 12 300 units @ $11 May 5 500 units @ $10 Dec. 8 200 units @ $12 Eddings Company uses a periodic inventory system. Sales totaled 1,500 units. Determine the cost of goods available for sale. $ Determine (1) the ending inventory, and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average). (Round the unit cost in the average cost method to 2 decimal places, e.g. 10.50. Use the rounded amounts for subsequent calculations. Round final answers to 0 decimal places, e.g. 125.) Which cost flow method results in (1) the lowest inventory amount for the balance sheet, and (2) the lowest cost of goods sold for the income statement? Lowest inventory amount Lowest cost of goods sold,Where is my answers? If you could not do just let me know ..the due date passed


Paper#7832 | Written in 18-Jul-2015

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