The following are the transactions for January 2016 of Ken Merchandising : January 01 January 01...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following are the transactions for January 2016 of Ken Merchandising : January 01 January 01 January 02 January 04 January 10 January 15 January 25 January 31 Instruction: ● On January 01, 2016, Ken invested 500,000 cash into Ken Merchandising. On the same date, he paid 66,000 for six months' rent on the store space, P13,000 for business licenses and permits, and P60,000 for various store furniture. He also bought P90,000 worth of office supplies on account with the intention to sell them at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOB Shipping point, Freight Collect. However, the next day, the business received a P2,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from Fact Supplies Store on terms n/60. The business bought from Star Supplies Shop P10,000 worth of supplies to be used in the store on terms 50% down payment, balance n/30. Michaela, a part time employee, was able to sell some of the store's merchandise to Mr. Daniel for P15,000 on terms 50% downpayment, balance 2/10, n/30. FOB Terms: FOB Destination, Freight Collect. Mr. Daniel paid 900 shipping fee. The business sold to Mrs. Cooper merchandise for P10,000 on terms 2/10, n/30. Mr. Jonas paid the business P40,000 for merchandise bought on the same day. Mr. Jonas already paid all the merchandise in full, however, he requested that some merchandise be delivered to his new business address sometime next month. At the end of the month, the business paid utilities totaling P5000 and miscellaneous expenses amounting to P4,000. Merchandise inventory as of January 31, 2016, is P15,500, based on physical count. This excludes the amount of inventory to be delivered, based on January 25 transaction. Use Perpetual Inventory System To determine the cost of goods sold in each sales transaction, the gross profit is 40% based on cost. (Sales Amount times 1.4) Journalize the other necessary adjustment for January 2016. Question: Is there any missing merchandise inventory? Justify your answer by giving poof (ex. computation) 100 Assets 101 Cash 102 Accounts Receivable 103 Allowance for Doubtful Accounts 104 Merchandise Inventory 105 106 107 108 Prepaid Rent Store Supplies Store Fumiture Accumulated Depreciation - Store Fumiture 200 Liabilities 201 Accounts Payable 202 Salaries Payable 203 Unearned sales CHART OF ACCOUNTS 400 401 402 300 Equity 301 Maria Lopez, Capital Revenues Sales Sales Retum and Allowances 500 501 502 503 504 Rent Expense 505 Taxes and Licenses Expense Store Supplies Expense Depreciation Expense - Store Fumiture Doubtful Accounts Expense Expenses Cost of Goods Sold Utilities Expense Salaries Expense 506 507 508 509 Miscellaneous Expense 510 Freight out 511 Inventory shortage 512 Income Summary The following are the transactions for January 2016 of Ken Merchandising : January 01 January 01 January 02 January 04 January 10 January 15 January 25 January 31 Instruction: ● On January 01, 2016, Ken invested 500,000 cash into Ken Merchandising. On the same date, he paid 66,000 for six months' rent on the store space, P13,000 for business licenses and permits, and P60,000 for various store furniture. He also bought P90,000 worth of office supplies on account with the intention to sell them at a higher price. The company paid 500 for the shipping fee. FOB Terms: FOB Shipping point, Freight Collect. However, the next day, the business received a P2,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from Fact Supplies Store on terms n/60. The business bought from Star Supplies Shop P10,000 worth of supplies to be used in the store on terms 50% down payment, balance n/30. Michaela, a part time employee, was able to sell some of the store's merchandise to Mr. Daniel for P15,000 on terms 50% downpayment, balance 2/10, n/30. FOB Terms: FOB Destination, Freight Collect. Mr. Daniel paid 900 shipping fee. The business sold to Mrs. Cooper merchandise for P10,000 on terms 2/10, n/30. Mr. Jonas paid the business P40,000 for merchandise bought on the same day. Mr. Jonas already paid all the merchandise in full, however, he requested that some merchandise be delivered to his new business address sometime next month. At the end of the month, the business paid utilities totaling P5000 and miscellaneous expenses amounting to P4,000. Merchandise inventory as of January 31, 2016, is P15,500, based on physical count. This excludes the amount of inventory to be delivered, based on January 25 transaction. Use Perpetual Inventory System To determine the cost of goods sold in each sales transaction, the gross profit is 40% based on cost. (Sales Amount times 1.4) Journalize the other necessary adjustment for January 2016. Question: Is there any missing merchandise inventory? Justify your answer by giving poof (ex. computation) 100 Assets 101 Cash 102 Accounts Receivable 103 Allowance for Doubtful Accounts 104 Merchandise Inventory 105 106 107 108 Prepaid Rent Store Supplies Store Fumiture Accumulated Depreciation - Store Fumiture 200 Liabilities 201 Accounts Payable 202 Salaries Payable 203 Unearned sales CHART OF ACCOUNTS 400 401 402 300 Equity 301 Maria Lopez, Capital Revenues Sales Sales Retum and Allowances 500 501 502 503 504 Rent Expense 505 Taxes and Licenses Expense Store Supplies Expense Depreciation Expense - Store Fumiture Doubtful Accounts Expense Expenses Cost of Goods Sold Utilities Expense Salaries Expense 506 507 508 509 Miscellaneous Expense 510 Freight out 511 Inventory shortage 512 Income Summary
Expert Answer:
Answer rating: 100% (QA)
Answers 1 S No Date 1 2 3 4 5 6 7 8 9 10 11 11 01Jan Cash 01Jan Prepaid Rent Ken Austria Capital Cap... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
David and Richard Riley started up a company that sold DVDs and videos at a discount. They bought videos that were out of date in bulk, allowing them to sell them at low prices. They started out by...
-
Which do you feel is more important for a new business: the income statement or the statement of ash flow? Why?
-
Describe the three forms of stock market efficiency
-
Determine (approximately) the force in each member of the truss. Assume the diagonals cannot support a compression force. -1.5 m- 8 kN 10 kN A B
-
A bar is sliding along a set of connected conducting rails as shown in Figure P29.37. The bar is given an initial velocity \(\vec{v}_{\mathrm{i}}\) to the right and then allowed to move freely. The...
-
Bob Davidson owns a newsstand outside the Waterstone office building complex in Atlanta, near Hartsfield International Airport. He buys his papers wholesale at $0.50 per paper and sells them for...
-
Assuming a rate of return of 8%, calculate the monthly savings needed for education assuming that savings will continue until the children's college education is completed. Education Because of the...
-
BOOTS, Inc., recently completed work on a 1 year, $10 million contract for technical support services awarded by the US Army. The contract included a small business subcontracting plan, and it also...
-
During the current year, Thomas, who is single, received the following items: a) Cash dividends on US Steel stock, $75. b) Interest on corporate bonds, $125 c) Interest on City of Denver bonds, $300....
-
A 55 kg ice skater is gliding along at 3.5 m/s. Five seconds later her speed has dropped to 2.9 m/s. What is the magnitude of the kinetic friction acting on her skates?
-
True or False: If AW(A) > AW(B), then PW(A) > PW(B).
-
True or False: IfAW(A)>AW(B), thenCW(A)>CW(B) and DPBP(A)
-
True or False: When using annual worth analysis with mutually exclusive alternatives having unequal lives, always use a planning horizon equal to the least common multiple of lives.
-
True or False: To compute capital recovery cost using Excel, enter = PMT(i%,n,-P,F) in any cell in a spreadsheet.
-
Create the data definition language (DDL.) for the given Entity Relationship Diagram in Figure Q1. Task Every SQL syntax for entity will be given I mark Every SQL syntax for attribute will be given 1...
-
Which task is performed by a book-keeper? A. Analysing the trading results B. Entering transactions in the ledger C. Preparing year-end financial statements D. Providing information for...
-
Mountain Adventure Biking Park was started on May 1 by Dustin Tanner. The following events and transactions are for May: May 1 Tanner invested $70,000 cash in the business. 3 Purchased an out-of-use...
-
At December 31, 2017, Giselle Company had a five-month, 5%, $90,000 note receivable that was issued on October 1, 2017. Interest and principal are payable at maturity on March 1, 2018. (a) Prepare...
-
The following is Edge Sports Repair Shop's trial balance at September 30, 2017, the company's fiscal year end: Additional information: 1. Service revenue earned but not recorded at September 30,...
-
A ball rolls off a table and lands on the floor. The horizontal distance between the position at which the ball lands and the edge of the table is \(0.50 \mathrm{~m}\), and the tabletop is \(0.80...
-
A rifle is aimed horizontally at a target \(100 \mathrm{~m}\) away, and the bullet leaves the rifle barrel at \(650 \mathrm{~m} / \mathrm{s}\). If the gun is aimed right at the bull's-eye, by how...
-
On a rifle that has a telescopic sight, the telescope is usually not parallel to the barrel of the rifle. The angle the telescope makes with the barrel has to be adjusted for the distance to the...
Study smarter with the SolutionInn App