I’m trying to learn for my Accounting class and I’m stuck. Can you help?
I have 4 Quiz question in accounting Fundamentals
You can use hand writing or tables in word, or excel so whatever.
also you have 1 and half hours!
From the information below for Cindy’s Tea, prepare the Journal entries for the Purchases AND Sales of Inventory under both the (a) FIFO and (b) Weighted Average methods. Assume the selling price per Box of Tea is $20.00
Opening Inventory September 1: $100 (10 Boxes of Tea at a cost of $10 per Box)
PURCHASES during Month: September 5th (60 Boxes of Tea at a cost of $11 per Box)
September 26th (70 Boxes of Tea at a cost of $12 per Box)
SALES during the Month: September 15th (30 Boxes of Tea)
September 29th (90 Boxes of Tea)
(a) Record all of the Journal Entries for the following events at the retail Denim clothing store that you own. You can ignore HST. Assume you owned no Inventory at the beginning of the month.
(b) What is the Gross Profit for your Business at the end of the month? Show your detailed calculations.
– You purchased jeans from a U.S. supplier for Cdn. $1500 on credit on January 15th with terms 1/10, n/30. You took delivery of the jeans. Your supplier noted FOB Destination Point on its invoice. There was $50 in freight cost. You paid for the total $100 Duty Tax at the border right away.
– On January 16th you discovered that some of the jeans you purchased from your U.S. supplier were not the right colour. You contacted your supplier and asked for an allowance, otherwise you would have to return the entire order. Your supplier agreed and granted you a $200 allowance on the entire order.
– You sold 2 pairs of jeans to a customer for a total of $150 cash on January 20th. You had purchased the jeans from your supplier for $50 a pair as per the supplier invoice.
Rick’s Research Inc.’s books/general ledger indicate a balance of $3,294.21 in the Cash account at the end of the month.The company’s Bank Statement showed a balance of $5,902.48 in Cash at the end of the same month.
(a)Prepare a Bank Reconciliation for the month taking into consideration the facts below:
(b)Prepare any Journal Entries that the company may have to make at the end of the month
1.Deposit in transit, $1,591.63
2.The Bank incorrectly deducted a $100.00 for a cheque from the company’s account that was written by a different business
3. Cheques: no. 337, $286.00; no. 338, $319.47; no. 339, $83.00; no. 340, $203.14; no. 341, $458.53 were all outstanding at month end.
4. EFT receipt of rent revenue, $900.00 was deposited into the company’s Bank account without the company realizing it before month end
5. Bank collected $2,114.00 of cheques on behalf of the company from the Lockbox representing Accounts Receivable payments of $2,000 including interest revenue of $114.00
6. Interest of $28.01 was earned by the company during the month and was deposited into the Bank account. Company did not know about it.
7. Cheque no. 333 for $150.00 was paid to a supplier Brown Corp. by the company to pay off an amount owing, but recorded it as $510.00
8. Bank service charges of $39.25 during the month were charged by the Bank without the knowledge of the company
9. NSF cheque from L. Ross, $52.00 was returned by the company’s Bank
10. EFT automatic payment was made to insurance company during the month for $361.00. Company forgot about this automatic payment at the Ban
– The same customer returned 1 pair of the jeans to your store on January 21st because they didn’t fit. You cheerfully provided them with a cash refund.
– On January 24th a second customer came to your store and purchased a pair of the same jeans for $75 and your cost of the jeans was $50 from your supplier. The customer paid with her VISA credit card. VISA charges your store a 4% Fee on all sales.
– You paid the amount owing to your supplier on January 27th
– On January 31st you performed a Physical Inventory count and found that you actually had 26 pairs of jeans on hand
Tasty’s Chocolate Store paid $6,000 for Easter Egg inventory on March 15th. By April 30th (2 weeks after Easter), the seasonal inventory can only be sold to customers for $4,000, and the decline in value appears permanent. In order to sell the inventory quickly, an on line advertisement must be taken out for $500 other wise it is unlikely they will sell the Easter Eggs at all.
(a) Prepare the required Journal Entry for the above situation
(b) What is the balance in the Inventory account after your Journal Entry?
(c) Explain why Accounting Principles require you to make this Journal Entry