ScholarMatic: Explanation & Answer
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Week 3 Homework Template
Instructions: Only enter data in the yellow boxes. The remaining areas are already completed for
you.
Save
the file as follows: lastnamewk1.docx
Submit
to the assignment box before the due date.(Late
assignments will receive a late penalty).
Remember
to show your calculations where necessary! (Use empty space under the tables to
do so).
Exercise
5-2
(a) Journalize the transactions, including
explanations. (Note, enter all accounts
in one box. The dates have been included
to help with formatting).
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Date |
Account Titles and Explanation |
Debit |
Credit |
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Sept. 6 |
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9 |
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10 |
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12 |
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12 |
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14 |
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14 |
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20 |
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20 |
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Exercise 5-6 is on the next page
Exercise 5-6
(a)
Prepare an income statement using
the format presented on page 245. Assume
a 25% tax rate.
(b)
Calculate the profit margin ratio
and gross profit rate.
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ZHOU |
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Income |
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For |
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Sales Revenues |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
Amount (Total) |
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Net Sales |
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Cost of goods sold |
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Gross profit |
Amount |
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Operating Expenses |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Total |
Amount |
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Income before income taxes |
Amount |
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Income tax expense |
Amount |
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Net Income |
Amount |
(b) Profit Margin Ratio
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Enter text answer here. |
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Gross Profit Rate
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Enter text answer here. |
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PROBLEM 5-5B
Prepare a correct detailed multiple-step
income statement. Assume a tax rate of
25%.
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WRIGHT COMPANY |
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Income Statement |
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For the Month Ended December 31, 2014 |
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Sales Revenues |
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Account title |
Amount |
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Account title |
Amount |
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Account title |
Amount |
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Net Sales |
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Cost of goods sold |
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Gross profit |
Amount |
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Operating Expenses |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Account |
Amount |
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Total |
Amount |
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Income from operations |
Amount |
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Other revenues and gains |
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Account |
Amount |
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Other expenses and losses |
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Account |
Amount |
Amount (Total) |
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Income before income taxes |
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Income tax expense |
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Net Income |
Problem 6-2B
(a) Determine the Cost of Goods
Available for Sale
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
|
Total |
(b) Determine the ending inventory and
cost of goods sold under each of the assumed cost flow methods. Prove the accuracy of the cost of goods sold
under FIFO and LIFO.
FIFO
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
||||
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Date |
Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
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Amount |
Amount |
Less: ending inventory |
Amount |
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Amount |
Amount |
||||
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Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
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Proof |
|||
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Date |
Units |
Unit Cost |
Total Cost |
|
Amount |
Amount |
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|
Amount |
Amount |
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|
Amount |
Amount |
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|
Amount |
Amount |
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Total |
Amount |
Total |
Amount |
LIFO
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
||||
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Date |
Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
|
Amount |
Amount |
Less: ending |
Amount |
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|
Amount |
Amount |
||||
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Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
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Proof |
|||
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Date |
Units |
Unit Cost |
Total Cost |
|
Amount |
Amount |
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|
Amount |
Amount |
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|
Amount |
Amount |
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Amount |
Amount |
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Total |
Amount |
Total |
Amount |
AVERAGE COST (Round to the nearest
decimal, i.e., $1.01)
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
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Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
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|
Amount |
Amount |
Less: ending |
Amount |
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|
Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
(c) Which
cost flow method results in (1) the highest inventory amount for the balance
sheet and (2) the highest cost of goods sold for the income statement?
|
Enter your answer here |
Problem
6-3B
(a) Determine the Cost of Goods
Available for Sale
|
Date |
Explanation |
Units |
Unit Cost |
Total Cost |
|
Total |
(b) Determine the ending inventory and
the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO
and average-cost). Prove the accuracy of
the cost of goods sold under each method.
FIFO
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
||||
|
Date |
Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
|
Amount |
Amount |
Less: ending |
Amount |
||
|
Amount |
Amount |
||||
|
Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
|
Proof |
|||
|
Date |
Units |
Unit Cost |
Total Cost |
|
Amount |
Amount |
||
|
Amount |
Amount |
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|
Amount |
Amount |
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|
Amount |
Amount |
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Total |
Amount |
Total |
Amount |
LIFO
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
||||
|
Date |
Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
|
Amount |
Amount |
Less: ending |
Amount |
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|
Amount |
Amount |
||||
|
Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
|
Proof |
|||
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Date |
Units |
Unit Cost |
Total Cost |
|
Amount |
Amount |
||
|
Amount |
Amount |
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|
Amount |
Amount |
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|
Amount |
Amount |
||
|
Total |
Amount |
Total |
Amount |
AVERAGE COST (Round to the nearest
decimal, i.e., $1.01)
|
(1) Ending Inventory |
(2) Cost of Goods Sold |
||||
|
Units |
Unit Cost |
Total Cost |
Cost of goods |
Amount |
|
|
Amount |
Amount |
Less: ending |
Amount |
||
|
Total |
Amount |
Total |
Amount |
Cost of Goods Sold |
Amount |
(c) Which
cost flow method results in the lowest inventory amount for the balance sheet?
The lowest cost of goods sold for the income statement?
|
Enter your answer here |
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
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