Section 1: Perpetual Journal Entries, Gross Method (26 points) 1 Yucky Foods Company maintains a perpetual inventory system and records all purchases and sales using the gross method. Prepare journal entries for the following transactions on this page and page 2 12.5 Sold Inventory with a list price of $1,600 to Brussel Sprouts Co. for Cash. The cost of the goods sold was $900. 12-9 Purchased Inventory on account from Rutabaga, Inc., list price $12,000, terms FOB destination, 5/15, net 45 12-11 Returned Inventory from December 9th purchase with a list price of $400 to Rutabaga, Inc. 12-12 Sold Inventory on account, terms FOB shipping point, 2/10, net 30 to Parsnip Co. for $5,000. The cost of the goods sold was $2800. The company paid $160 for shipping charges and added the shipping charges to the invoice 12-17 Accepted a retum of $600 of Inventory from the December 12th sale to Parsnip Co. The cost of the goods returned was $360. 12-22 Received payment from Parsnip Co. for balance owed on December 12th transaction. 12-24 Paid Rutabaga, Inc. for remaining balance on bill. Instructions: The chart of accounts for Yucky Foods Company includes the following accounts: Accounts Payable, Accounts Receivable, Cash, Cost of Goods Sold Credit Card Expense, Inventory, Sales, Sales Discounts, Sales Returns & Allowances, Sales Taxes Payable, and Shipping Expense Date Account Debit Credit 199 DOLL Section II: Multiple-Step Income Statement (13 points) 2 Prepare a multiple step income statement for Walk, Inc. from the following data for the year ended December 31, 2020 (accounts have normal balances and are listed in alphabetical order): Administrative Expenses 5132,000, Cost of Goods Sold, S509.000. Income Tax Expense, $26,000 Interest Expense, $15.000, Rent Revenue, $24,000, Sales, 5977,000, Sales Discounts $17.000 Sales Returns and Allowances, $36.000, Selling Expenses $167.000 search O DOLL F5 F6 FZ FB F9 F10 F11 3 Blue Moon, Inc. maintains a periode inventory system, and recorded the following data during the year ending December 31, 2020 1-1 Beginning inventory 390 units 55.42 each 3.24 Purchase 640 units 55.45 each 5.1 Purchase 800 units 55.55 each 9.7 Purchase 360 units 55.59 each 11-15 Purchase 430 units 55.64 each 12:31 Ending Inventory $70 units Instructions Calculate the Cost of Merchandise Sold and Ending Inventory values, using each of the following cost flow assumption First-In Fust-Out FIFO) Latin. First Out (LIFO) Average Cout(Weighted Average c O 3 DOLL F8 F10 Fan Section IV: Perpetual Inventory Valuation Methods (21 points) 4. Eternity, Inc, maintains all of its inventory records using a perpetual inventory system. The company withes to consider LIFO, FIFO, and Moving Average cost flow assumptions in valuing the inventory of Gifts which were in inventory throughout 2020. Eternity, Inc had a total of 300 Gifts on hand at the beginning of the year, with a cost of $16 per unit Information on the purchases and sales of Gifts during 2020 are given below Date Purchases Sales 2/23 1.200 units $18 7/18 820 units 9.26 450 units 102 1,200 units @ $20 990 uits Instructions Determine Ending Inventory and cost of Good Sold using a FIFO cost flow assumption. Purust Com) Sales (at Cost) lovestory Balance FIFO Date #of trit) Unit Cou Total Cost of Unit Total Coat of UR Lait Cart Total Cat Cort 11 300 16.00 4,500 o P 799 DOLL Section 1: Perpetual Journal Entries, Gross Method (26 points) 1 Yucky Foods Company maintains a perpetual inventory system and records all purchases and sales using the gross method. Prepare journal entries for the following transactions on this page and page 2 12.5 Sold Inventory with a list price of $1,600 to Brussel Sprouts Co. for Cash. The cost of the goods sold was $900. 12-9 Purchased Inventory on account from Rutabaga, Inc., list price $12,000, terms FOB destination, 5/15, net 45 12-11 Returned Inventory from December 9th purchase with a list price of $400 to Rutabaga, Inc. 12-12 Sold Inventory on account, terms FOB shipping point, 2/10, net 30 to Parsnip Co. for $5,000. The cost of the goods sold was $2800. The company paid $160 for shipping charges and added the shipping charges to the invoice 12-17 Accepted a retum of $600 of Inventory from the December 12th sale to Parsnip Co. The cost of the goods returned was $360. 12-22 Received payment from Parsnip Co. for balance owed on December 12th transaction. 12-24 Paid Rutabaga, Inc. for remaining balance on bill. Instructions: The chart of accounts for Yucky Foods Company includes the following accounts: Accounts Payable, Accounts Receivable, Cash, Cost of Goods Sold Credit Card Expense, Inventory, Sales, Sales Discounts, Sales Returns & Allowances, Sales Taxes Payable, and Shipping Expense Date Account Debit Credit 199 DOLL Section II: Multiple-Step Income Statement (13 points) 2 Prepare a multiple step income statement for Walk, Inc. from the following data for the year ended December 31, 2020 (accounts have normal balances and are listed in alphabetical order): Administrative Expenses 5132,000, Cost of Goods Sold, S509.000. Income Tax Expense, $26,000 Interest Expense, $15.000, Rent Revenue, $24,000, Sales, 5977,000, Sales Discounts $17.000 Sales Returns and Allowances, $36.000, Selling Expenses $167.000 search O DOLL F5 F6 FZ FB F9 F10 F11 3 Blue Moon, Inc. maintains a periode inventory system, and recorded the following data during the year ending December 31, 2020 1-1 Beginning inventory 390 units 55.42 each 3.24 Purchase 640 units 55.45 each 5.1 Purchase 800 units 55.55 each 9.7 Purchase 360 units 55.59 each 11-15 Purchase 430 units 55.64 each 12:31 Ending Inventory $70 units Instructions Calculate the Cost of Merchandise Sold and Ending Inventory values, using each of the following cost flow assumption First-In Fust-Out FIFO) Latin. First Out (LIFO) Average Cout(Weighted Average c O 3 DOLL F8 F10 Fan Section IV: Perpetual Inventory Valuation Methods (21 points) 4. Eternity, Inc, maintains all of its inventory records using a perpetual inventory system. The company withes to consider LIFO, FIFO, and Moving Average cost flow assumptions in valuing the inventory of Gifts which were in inventory throughout 2020. Eternity, Inc had a total of 300 Gifts on hand at the beginning of the year, with a cost of $16 per unit Information on the purchases and sales of Gifts during 2020 are given below Date Purchases Sales 2/23 1.200 units $18 7/18 820 units 9.26 450 units 102 1,200 units @ $20 990 uits Instructions Determine Ending Inventory and cost of Good Sold using a FIFO cost flow assumption. Purust Com) Sales (at Cost) lovestory Balance FIFO Date #of trit) Unit Cou Total Cost of Unit Total Coat of UR Lait Cart Total Cat Cort 11 300 16.00 4,500 o P 799 DOLL