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49 Cards in this Set
- Front
- Back
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PERPETUAL INVENTORY SYSTEM:
On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net 2/30 FOB shipping point. |
MDSE INVENTORY 20,000
CASH 20,000 |
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PERPETUAL INVENTORY SYSTEM:
On April 6 paid freight costs of $900 on merchandise purchased from Allman |
MDSE INVENTORY 900
CASH 900 |
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PERPETUAL INVENTORY SYSTEM:
On april 7, purchased equipment on account for $26000 |
Equip Expense 26000
A/P 26000 |
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PERPETUAL INVENTORY SYSTEM:
On april 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise |
A/P 4000
Mdse Inv 4000 |
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PERPETUAL INVENTORY SYSTEM:
On Dec. 3, Rebecca Company sold $480,000 of merchandise to Simonis Co., terms 2/10 n/30, FOB shipping point. The cost of the merchandise sold was $350,000. |
A/R 480,000
MDSE INV 480,000 COGS 350,000 MDSE INV 350,000 |
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PERPETUAL INVENTORY SYSTEM:
On dec. 8, Simonis Co. was granted an allowance of $27,000 for merchandise purchased on dec 3 |
Sales R&A 27,000
A/R 27,000 |
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PERPETUAL INVENTORY SYSTEM:
On june 1, purchased 160 books on account for $5 each from Ex Libris Publishers, FOB destination, terms 2/10,n/30. The appropriate party also made a cash payment of $50 for the freight on this date. |
Mdse Inv 800
A/P 800 Mdse Inv 50 Cash 50 |
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PERPETUAL INVENTORY SYSTEM:
Sold 120 books on account to Readers-R-Us for $10 each |
A/R 1200
Sales 1200 |
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PERPETUAL INVENTORY SYSTEM:
Received $50 credit for 10 books returned to Ex Libris Publishers |
A/P 50
Mdse Inv 50 |
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PERPETUAL INVENTORY SYSTEM:
Sold 120 books on account to Bargain Books for $10 each |
A/R 1200
Sales 1200 |
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PERPETUAL INVENTORY SYSTEM:
Purchased 110 books on account for $5 each from Bookem Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date |
Mdse Inv 550
A/P 550 Mdse Inv 50 Cash 50 |
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UNDER PERIODIC INVENTORY:
On april 5, purchased merchandise from Chile Company for $18,000, terms 2/10, net/30, FOB shipping point |
Purchases 18,000
A/P 18,000 |
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UNDER PERIODIC INVENTORY:
Paid freight costs of $800 on merchandise purchased from Chile |
Freight In 800
Cash 800 |
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UNDER PERIODIC INVENTORY: purchased equipment on account from Wayne Higley Mfg, Co. for $26,000
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Equipment 26,000
A/P 26,000 |
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UNDER PERIODIC INVENTORY:
Returned damaged merchandise to Chile Company and was granted a $4,000 allowance |
A/P 4,000
Purchase R&A 4,000 |
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UNDER PERIODIC INVENTORY:
Purchased golf bags, clubs, and balls on account from Balata Co. $1,700, FOB shipping point, terms 2/10 n/60 |
Purchases 17,000
A/P 17,000 |
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UNDER PERIODIC INVENTORY:
Paid freight on Balata Co. purchases $80 |
Freight-In 80
Cash 80 |
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UNDER PERIODIC INVENTORY:
Received credit from Balata Co. for merchandise returned $200 |
A/P 200
Purchase R&A 200 |
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UNDER PERIODIC INVENTORY:
Sold Merchandise on account to members to members $950, terms n/30 |
A/R 950
Sales 950 |
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UNDER PERIODIC INVENTORY:
Purchased golf shoes, sweaters and other accessories on account from Arrow Sports wear $660, terms 1/10, n/30 |
Purchases 660
A/P 660 |
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UNDER PERIODIC INVENTORY:
Paid Balata Co, in full. |
A/P (1700-200) 1500
Cash 1470 Purchase Discount 30 |
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UNDER PERIODIC INVENTORY:
Received credit from arrow sportswear for merchandise returned $60 |
A/P 60
Purchase R&A 60 |
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UNDER PERIODIC INVENTORY:
Made sales on account to members $700, terms n/30 |
A/R 700
Sales 700 |
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UNDER PERIODIC INVENTORY:
Paid Arrow sportswear in full |
A/P 600
Purchase Discount 6 (600x.01) Cash 594 |
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UNDER PERIODIC INVENTORY:
Granted credit to members for clothing that did not fit properly $75 |
Sales R&A 75
A/R 75 |
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Sales revenue section of Income statement
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Sales Rev
Sales +$$$$$ Less: Sales R&A --$$$$$$ Sales Discounts --$$$$ Net Sales $$$$$ |
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prepare separate closing entries for (1) sales and (2) the contra account to sales
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Sales (closes out to) $$$
Income Summary $$$ Income Summary(closes to) $$$$ Sales R&A $$$$ Sales Discount $$$$ |
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Prepare a COGS section
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COGS*
Beginning Inv +Purchases LESS: Purchase R&A Purchase Discounts = Net Purchases + Freight In =COG purchased +COG avail. for sale LESS: Ending Inv -COGS =Gross Profit |
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Prepare the SALES REVENUE section of the income statement
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Sales Revenue*
Sales LESS: Sales R&A Sales Discounts =Net Sales |
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Prepare sepearate closing entries for (1) sales and the (2) contra account to sales
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(1)Sales closes to income summary
(2) Income Summary closes to Sales R&A and Sales Discount |
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Prepare a balance sheet
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Current Assets*
Property Plant & Equipment* Liabilities* Owners Equity* |
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Prepare a statement of owners equity
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3 line heading*
beginning capital +net income (drawings) =Ending Capital |
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Operating Expenses
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Selling Exp*
+General & administrative Expenses |
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General & Administrative Expenses
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Insurance exp
Office Salaries Property taxes exp Utilities Depreciation Expense-Building |
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Selling Expenses
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Insurance Exp
Sales commission expense Sales Salaries expense Deprec. exp equip Utilities |
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income from operations
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Gross Profit - Operating Expenses
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Prepare an income statement
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Sales Revenue*
Operating Expenses* Income from operations* Other Revenues and gains* Other expenses & losses* |
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Current assets
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Cash
A/R Prepaid Insurance Merchandise inventory |
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Property Plant and Equipment
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Delivery Equip
-accum. deprec delivery expense = $$$$ Store Equip -accum deprec. store equip = Total P.P.& E. $$$$ + total current Assets =Total Assets |
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Current Liabilities
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Current*
Payables =Total Current Liabilities |
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Long-term liabilities
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Notes Payable
= long-term liabilities + Current liabilities =total liabilities |
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To end income statement
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Add total liabilities & owners equity
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% Change
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New - Old / Old x 100
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Company % from net income to net sales
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difference between both numbers / smaller # x 100
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gross profit
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net sales - cost of sales
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Collection of note receivable
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DEBIT
Cash Misc. Exp CREDIT Notes Receivable Interest Revenue |
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Book Error
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Cash
A/P |
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NSF Check
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A/R
Cash |
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Bank service charges
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Misc Exp
Cash |
