Accounting Homework

Chapter05.Exercises.xls

E5-15


Financial Accounting
E5-15	Journalizing purchase transactions - perpetual systems
LO 2 [10-15 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
	On June 30, 2019, Hayes Jewelers purchased inventory of $5,800 on account from
	Slater Diamonds, a jewelry importer. Terms were 3/15, net 45. The same day Hayes
	paid freight charges of $400. Upon receiving the goods, Hayes checked the order and
	found $800 of unsuitable merchandise, which was returned to Slater on July 4. Then,
	on July 14, Hayes paid the invoice.
Requirements
1.	Journalize all necessary transactions for Hayes Jewelers. Explanations are
	not required.
Test Your Knowledge
E5-15
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS		POST.REF.	DEBIT	CREDIT
June 30
30
July 4
14

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Financial Accounting
E5-18	Journalizing sales transactions - perpetual systems
LO 3 [10-15 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Refer to the facts presented in Exercise 5-15.
	Exercise 5-15 presented here for your convenience.
	On June 30, 2019, Hayes Jewelers purchased inventory of $5,800 on account from
	Slater Diamonds, a jewelry importer. Terms were 3/15, net 45. The same day Hayes
	paid freight charges of $400. Upon receiving the goods, Hayes checked the order and
	found $800 of unsuitable merchandise, which was returned to Slater on July 4. Then,
	on July 14, Hayes paid the invoice.
Requirements
1.	Journalize the transactions of the seller, Slater Diamonds. Slater’s cost of goods
	sold was 45% of the sales price. Explanations are not required.
Test Your Knowledge
E5-18
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS		POST.REF.	DEBIT	CREDIT
June 30
30
Jul 4
4
14

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Financial Accounting
P5-27A	Journalizing purchase and sales transactions - perpetual inventory
LO 2, 3 [20-25 minutes]
		Students please fill-in areas that are shaded
Student Name
Course Name
Student ID:
Date:
Consider the following transactions that occurred in September 2019 for Aqumarines.
	Sep 3	Purchased inventory on terms 1/15, n/eom, $5,000.
	4	Purchased inventory for cash of $1,700.
	6	Returned $500 of inventory from September 4 purchase.
	8	Sold goods on terms of 2/15, n/35 of $6,000 that cost $2,640.
	10	Paid for goods purchased September 3.
	12	Received goods from September 8 sale of $400 that cost $160.
	23	Received payment from September 8 customer.
	25	Sold goods to Smithsons for $1,100 that cost $400. Terms of n/30
		were offered. As a courtesy to Smithsons, $75 of freight was added to
		the invoice for which cash was paid directly to UPS by Aquamarines.
	29	Received payment from Smithsons.
Requirements
1.	Journalize September transactions for Aquamarines, Inc. No explanations
	are required.
Test Your Knowledge
P5-27A
Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS		DEBIT	CREDIT
Sep 3
4
6
8
8
10
12
12
23
25
25
29

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Financial Accounting
P5-32A	Preparing a multi-step income statement and a classified balance sheet
LO 5 [30-40 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Link Back to Chapter 4 (Classified Balance Sheet). The accounts of Taylor
	Electronics Company are listed along with their balances before closing for the
	month ended March 31, 2019.
	Interest revenue	$ 200	Accounts payable	$ 16,700
	Inventory	45,100	Accounts receivable	33,600
	Note payable, long–term	46,000	Accumulated depreciation	37,700
	Salary payable	2,700	Taylor, capital, Feb 28, 2019	54,100
	Sales discounts	2,900	Taylor, drawing	20,000
	Sales returns and allowances	7,500	Cash	8,000
	Sales revenue	297,000	Cost of goods sold	162,300
	Selling expense	38,200	Equipment	129,100
	Supplies	6,000	General expenses	16,700
	Unearned sales revenue	13,800	Interest payable	1,200
Requirements
1.	Prepare Taylor Electronics’ multi-step income statement.
2.	Prepare Taylor Electronics’ statement of owner's equity.
3.	Prepare Taylor Electronics’ classified balance sheet in report form.
Test Your Knowledge
P5-32A
	Req. 1
	Taylor Electronics Company
	Income Statement
	Month Ended March 31, 2019
	Net income
	Req. 2
	Taylor Electronics Company
	Statement of Owner's Equity
	Month Ended March 31, 2019
	Taylor, capital, Feb 28, 2019
	Taylor, capital, March 31, 2019
	Req. 3
	Taylor Electronics Company
	Balance Sheet
	March 31, 2019
	ASSETS
	Total assets
	LIABILITIES
	OWNER'S EQUITY
	Total liabilities and owner's equity

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Financial Accounting
S5-8	Preparing a merchandiser’s income statement, statement of retained earnings and balance sheet
LO 5 [30-40 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Carolina Communications reported the following figures from its adjusted trial balance
	for its first year of business:
	Cash	$ 3,800	Cost of Goods Sold	$ 18,000
	Selling Expenses	1,000	Equipment, net	10,200
	Accounts Payable	4,100	Accrued Liabilities	1,700
	Common Stock	4,230	Sales Revenue	40,000
	Notes Payable, long-term	700	Accounts Receivable	2,700
	Merchandise Inventory	500	Interest Expense	30
	Administrative Expenses	2,500	Sales Discounts	4,800
	Sales Returns and Allowances	7,200
Requirements
1.	Prepare Carolina Communications’ multi-step income statement for the year ended July 31, 2019.
2.	Prepare Carolina Communications’ statement of owner's equity.
3.	Prepare Carolina Communications’ classified balance sheet in report form.
Test Your Knowledge
P5-32A
	Req. 1
	CAROLINA COMMUNICATIONS
	Income Statement
	Month Ended July 31, 2019
	Net income
	Req. 2
	CAROLINA COMMUNICATIONS
	Statement of Owner's Equity
	Month Ended July 31, 2019
	Carolina, capital, July 31, 2019
	Req. 3
	CAROLINA COMMUNICATIONS
	Balance Sheet
	July 31, 2019
	ASSETS
	Total assets
	LIABILITIES
	OWNER'S EQUITY
	Total liabilities and owner's equity

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Financial Accounting
S5-19	Preparing a merchandiser’s income statement, statement of retained earnings and balance sheet
LO 5 [30-40 minutes]
		Students please fill-in areas that are shaded
	Student Name
	Course Name
	Student ID:
	Date:
	Journalize the following sales transactions for Antique Mall. Explanations are not required.
Jan. 4	Sold $12,200 of antiques on account, credit terms are 3/15, n/30. Cost of
	goods is $6,400.
8	Received a $400 sales return on damaged goods from the customer. Cost of
	goods damaged is $210.
13	Antique Mall receives payment from the customer on the amount due from
	Jan. 4, less the return and discount.
20	Sold $4,800 of antiques on account, credit terms are 1/10, n/45, FOB
	destination. Cost of goods is $1,200.
20	Antique Mall paid $100 on freight out.
25	Antique Mall negotiated a $300 allowance on the goods sold on Jan. 20.
29	Receives payment from the customer on the amount due from Jan. 20, less the
	allowance and discount.
Requirements
1.	Journalize all necessary transactions.
Test Your Knowledge
S5-19
	Req. 1
Journal
DATE	ACCOUNTS AND EXPLANATIONS		POST.REF.	DEBIT	CREDIT
Jan. 4
Jan. 8
Jan. 13
Jan. 20
Jan. 20
Jan. 25
Jan. 29

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