Aster Turane Computers uses a perpetual accounting system. 1. Use the following transactions to complete both FIFO
Question:
Aster Turane Computers uses a perpetual accounting system.
1. Use the following transactions to complete both FIFO and MWA Inventory Costing methods.
Apr. 1 Physical inventory count revealed $3,480 of merchandise inventory and 110 pieces. (no entry required)
7 Purchased $11,500 of merchandise (310 units) from LedCor with terms of 1/10,
n/30, FOB shipping point.
13 Sold 175 units of merchandise with a retail value of $7,000 to Starbust Inc.
with terms of 1/10, n/30, FOB shipping point.
20 Purchased $14,000 (350 units) of merchandise from LedCor with terms of 1/10,n/30, FOB destination.
23 Sold 200 units of merchandise for $7,800 to Lendrum Sales; 1/10, n30.
26 Sold merchandise (40 units) for $1,800 to Gillette Industries; 1/10, n30.
30. Sold merchandise (60 units) for $2,640 on credit to Whistler Resort.
2. Complete the journal entries for the transactions above using the cost from the MWA model.
3. Create a Multi-step Income Statement) and a Single-Step Income Statement for year ended April 30, 2019
The Adjusted Trial Balance for Aster Turane Computers is below:
Adjusted Trial Balance | ||||
Account | Debit | Credit | ||
Accounts Payable | 8,500 | |||
Accounts Receivable - Gillette Industries | 1,800 | |||
Accounts Receivable - Lendrum Sales | 7,800 | |||
Accounts Receivable - Norton Electric | 3,080 | |||
Accounts Receivable - Sharp Co. | 4,320 | |||
Accounts Receivable - Starburst Inc. | 7,000 | |||
Accounts Receivable - Whistler Resort | 2,640 | |||
Accumulated Depreciation, Computer Equipment | 504 | |||
Accumulated Depreciation, Office Equipment | 600 | |||
Advertising Expense | 780 | |||
Aster Turane, Capital | 59,619 | |||
Aster Turane, Withdrawals | 1,800 | |||
Cash | 6,200 | |||
Charitable Donations Expense | 0 | |||
Computer Equipment | 5,040 | |||
Computer Supplies | 160 | |||
Computer Supplies Expense – *To make sales* | 1,520 | |||
Cost of Goods Sold | 17,705 | |||
Depreciation Expense, Computer Equipment *sales* | 504 | |||
Depreciation Expense, Office Equipment | 600 | |||
Insurance Expense | 2,160 | |||
Merchandise Inventory | 11,275 | |||
Mileage Expense *to make direct sales to customer* | 2,336 | |||
Office Equipment | 12,000 | |||
Prepaid Insurance | 4,320 | |||
Prepaid Rent | 4,650 | |||
Rent Expense *office* | 4,650 | |||
Repairs Expense, Office Computer | 120 | |||
Sales | 33,251 | |||
Sales Discounts | 54 | |||
Sales Returns and Allowances | 600 | |||
Unearned Computer Services Revenue | 0 | |||
Wages Expense *salesmen wages* | 7,245 | |||
Wages Payable | 7,885 | |||
Totals | 110,359 | 110,359 | ||
4. Prepare the Journal Entries to close out the temporary accounts
5. Prepare a Classified Balance Sheet for April 30, 2019.
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav