BUS591 Financial AccountingWeek 3 Homework ProblemsComplete the following Workbook Template Week 3. (Attatched) Problems E5-2 and E5-6 are from Chapter 5 and P5-5B from the Textbook Student Companion
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).
Date | Account Titles and Explanation | Debit | Credit | |||
Sept. 6 | | |||||
9 | ||||||
10 | ||||||
12 | ||||||
12 | ||||||
14 | ||||||
14 | ||||||
20 | ||||||
20 | ||||||
Exercise 5-6 is on the next page
Exercise 5-6
Prepare an income statement using the format presented in Illustration 5-11.
Prepare a comprehensive income statement.
Calculate the profit margin and gross profit rate.
(a)
LIEU COMPANY | ||
Income Statement | ||
For the Month Ended January 31, 2017 | ||
Sales Revenues | ||
Account title | Amount | |
Account title | Amount | |
Account title | Amount | Amount (Total) |
Net Sales | ||
Cost of goods sold |
| |
Gross profit | Amount |
|
Operating Expenses |
| |
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Total operating expenses | Amount | |
Income before income taxes | Amount | |
Income tax expense | Amount | |
Net Income | Amount |
(b)
LIEU COMPANY | |
Comprehensive Income Statement | |
For the Month Ended January 31, 2017 | |
Net Income | Amount |
Other Comprehensive Income (net of tax) | Amount |
Comprehensive Income | Amount (Total) |
(c) Profit Margin
Enter text answer here. |
Gross Profit Rate
Enter text answer here. |
PROBLEM 5-5B
Prepare a correct detailed multiple-step income statement.
WRIGHT COMPANY | ||
Income Statement | ||
For the Month Ended December 31, 2014 | ||
Sales Revenues | ||
Account title | Amount | |
Account title | Amount | |
Account title | Amount | |
Net Sales | ||
Cost of goods sold |
| |
Gross profit | Amount |
|
Operating Expenses |
| |
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Account title | Amount |
|
Total operating expenses | Amount | |
Income from operations | Amount | |
Other revenues and gains | ||
Account title | Amount |
|
Other expenses and losses | ||
Account title | Amount | Amount (Total) |
Income before income taxes | ||
Income tax expense | ||
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 | |||||
Date | Units | Unit Cost | Total Cost | Cost of goods available for sale | Amount | |
Amount | Amount | Less: ending inventory | Amount | |||
Amount | Amount | |||||
Total | Amount | Total | Amount | Cost of Goods Sold | Amount |
Proof of Cost of Goods Sold (FIFO) | |||
Date | Units | Unit Cost | Total Cost |
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
Total | Amount | Total | Amount |
LIFO
(1) Ending Inventory | (2) Cost of Goods Sold | |||||
Date | Units | Unit Cost | Total Cost | Cost of goods available for sale | Amount | |
Amount | Amount | Less: ending inventory | Amount | |||
Amount | Amount | |||||
Total | Amount | Total | Amount | Cost of Goods Sold | Amount |
Proof of Cost of Goods Sold (LIFO) | |||
Date | Units | Unit Cost | Total Cost |
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
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 available for sale | Amount | ||
Amount | Amount | Less: ending inventory | Amount | |||
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 available for sale | Amount | |
Amount | Amount | Less: ending inventory | Amount | |||
Amount | Amount | |||||
Total | Amount | Total | Amount | Cost of Goods Sold | Amount |
Proof of Cost of Goods Sold (FIFO) | |||
Date | Units | Unit Cost | Total Cost |
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
Total | Amount | Total | Amount |
LIFO
(1) Ending Inventory | (2) Cost of Goods Sold | |||||
Date | Units | Unit Cost | Total Cost | Cost of goods available for sale | Amount | |
Amount | Amount | Less: ending inventory | Amount | |||
Amount | Amount | |||||
Total | Amount | Total | Amount | Cost of Goods Sold | Amount |
Proof of Cost of Goods Sold (LIFO) | |||
Date | Units | Unit Cost | Total Cost |
Amount | Amount | ||
Amount | Amount | ||
Amount | Amount | ||
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 available for sale | Amount | ||
Amount | Amount | Less: ending inventory | 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 |