For Your Business Tutor
santosb152
santos_belinda_accounting_chapter_8_assignments.xlsxE 8-11
| Belinda Santos |
| E 8-11 |
| Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2013. The units have a list price of $500 each, |
| but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30 Thomas uses a periodic inventory system. |
| Required: |
| 1. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2013, using the gross method of accounting |
| for purchase disounts. |
| 2. Prepare the journal entry to record the payment on December 15, 2013,using the gross method of accounting for purchase discounts. |
| 3. Repeat requirements 1 and 2 using the net method of accounting for purchase discounts. |
p 8-1
| Belinda Santos |
| P 8-1 |
| James Company began the month of October with inventory of $15,000. The following inventory transactions occurred during the month: |
| a. The company purchased merchandise on account for $22,000 on October 12, 2013. Terms of the purchase were 2/10, n/30. James uses the |
| net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $500 were paid in cash. |
| b. On October 18 the company returned merchandise costing $3,000. The return reduced the amount owed to the supplier. The merchandise |
| returned came from beginning inventory, not from the October 12 purchase. |
| c. On October 31, James paid for the merchandise purchased on October 12. |
| d. During October merchandise costing $18,000 was sold on account for $28,000. |
| e. It was determined that inventory on hand at the end of October cost $16,060 |
| Required: |
| 1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry |
| at the end of October to record cost of goods sold. |
| 2. Assuning that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. |
E 8-22
| Belinda Santos |
| P 8-22 |
| On January 1,2013, the Haskins Company adopted the dollar value LIFO method for its one inventory pool. The pools value on this date was $ 660,000. |
| The 2013 and 2014 ending inventory valued at year end costs were $690,000 and $760,000, respectively. The appropriate cost indexes are 1.04 for 2013 and 1.08 for 2014. |
| Required: |
| Calculate the inventory value at the end of 2013 and 2014 using the dollar-value LIFO method. |
