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Adjusting EntriesClosing EntriesInventory EntriesCost Flow MethodsMultiple Step Income StatementBank RecAdjusting Journal EntriesDate Account Debit Credit12/31/12 Supplies Expense 250 Supplies 25012/31/12 Depreciation Expense 125 Accumulated Depreciation 12512/31/12 Insurance Expense 150 Prepaid Insurance 15012/31/12 Unearned Revenue 600 Service Revenue 60012/31/12 Salaries Expense 375 Salaries Payable 37512/31/12 Interest Expense 50 Interest Payable 5012/31/12 Accounts Receivable 2,000 Service Revenue 2,000Closing Journal EntriesDate Account Debit Credit12/31/12 Service Revenue 4,600 Income Summary 4,60012/31/12 Income Summary 3,800 Salaries Expense 675 Rent Expense 2,000 Advertising Expense 200 Supplies Expense 250 Insurance Expense 150 Utilities Expense 250 Telephone Expense 100 Depreciation Expense 125 Interest Expense 5012/31/12 Income Summary 800 Retained Earnings 80012/31/12 Retained Earnings 500 Dividends 500closing journal entries = revenue, expenses, dividendsNOT UNEARNED REVENUE1-Mar Purchased 20 handbags at $50 each from Purse Distributors with terms 2/10, n/30. Accounts Debit Credit Inventory $ 1,000 20 * $50 = $1,000Accounts Payable $ 1,000 1-Mar Paid $100 for freight of purses bought from Purse Distributors. Accounts Debit Credit Inventory $ 100 Cash $ 100 5-Mar Returned 2 defective purses to Purse DistributorsAccounts Debit Credit Accounts Payable $ 100 2 * $50 = $100Inventory $ 100 7-Mar Sold 4 purses for $80 each for cash. Purses had a cost of $50 each. Accounts Debit Credit Cash $ 320 4 * $80 = $320Sales $ 320 Accounts Debit Credit Cost of Goods Sold $ 200 4 * $50 = $200Inventory $ 200 9-Mar Paid Purse Distributors balance due.Accounts Debit Credit Accounts Payable $ 900 $1,000 - $100 = $900Cash $ 882 $900 - $18 = $882Inventory $ 18 $900 * .02 = $18Prepare the journal entries for the following transactions occuring in March for Perfect Purses, Inc.10-Mar Sold 8 purses to Fashions, Etc. for $80 each on account with terms 1/10, n/30. Purses had a cost of $50 each. Accounts Debit Credit Accounts Receivable $ 640 8 * $80 = $640Sales $ 640 <To record the sale>Accounts Debit Credit Cost of Goods Sold $ 400 8 * $50 = $400Inventory $ 400 <To record the costs related to the sale>11-Mar Granted Fashions, Etc a $20 allowance due to purses not meeting customer expectations. Accounts Debit Credit Sales Ret. & Allowances $ 20 Accounts Receivabl $ 20 14-Mar Received balance due from Fashions Etc. Accounts Debit Credit Cash $ 613.80 $620 - $6.20 = $613.80Sales Discounts $ 6.20 $620 * .01 = $6.20Accounts Reveivabl $ 620.00 $640 - $20 = $620Sales $ 960.00Less: Sales Returns and Allowances 20.00Less: Sales Discounts 6.20Net Sales 933.80Cost of Goods Sold 600.00Gross Profit $ 333.80Based on the above transactions, determine the Gross Profit for the month of March for Perfect Purses.Date Units Cost /Price Total CostBeg. Balance 50 $12 $600 2/15 purchase 60 $15 $900 9/1 purchase 70 $17 $1,190 Sales during the year 100 $25 $2,500 Beg. Balance 50 $12 $600 2/15 purchase 60 $15 $900 9/1 purchase 70 $17 $1,190 180 $2,690 Cost of Goods Available for SaleDate Units Cost /Price Total CostBeg. Balance 50 $12 $600 2/15 purchase 50 $15 $750 100 $1,350 Cost of Goods SoldCost of Goods Available for Sale $2,690 Cost of Goods Sold $1,350 $1,340 Ending InventoryDate Units Cost /Price Total Cost9/1 purchase 70 $17 $1,190 2/15 purchase 30 $15 $450 100 $1,640 Cost of Goods SoldCost of Goods Available for Sale $2,690 Cost of Goods Sold $1,640 $1,050 Ending Inventory$2,690 / 180 = $14.94 $14.94 * 100 = $1,494 Cost of Goods SoldCost of Goods Available for Sale $2,690 Cost of Goods Sold $1,494 $1,196 Ending InventorySports Warehouse had the following information related to itsinventory of footballs for the year 2012:Determine Cost of Goods Available For SaleDetermine Ending Inventory and Cost of Goods Sold assuming the FIFO method is used. Determine Ending Inventory and Cost of Goods Sold assuming the LIFO method is used. Determine Ending Inventory and Cost of Goods Sold assuming the Average Cost method is used.Sales for the year $2,500 Cost of Goods Sold $1,350 $1,150 Gross ProfitAssuming the FIFO method is used, what is the gross profit for the year?RevenuesNet Sales $ 1,000,000 Interest Revenue 10,000 Gain on Sale of Equipment 5,000 Total Revenues 1,015,000 ExpensesCost of Goods Sold 600,000 General and Administration Expenses 100,000 Salaries Expense 70,000 Selling Expenses 40,000 Depreciation Expense 30,000 Income Tax Expense 25,000 Bad debt expense 13,000 Interest Expense 12,000 Freight Out 5,000 Total Expenses 895,000 Net Income $ 120,000 Tiger Tail CompanyIncome StatementFor the year ended December 31, 2012Tiger Tail Company's accountant prepared the following single step income statement for the year ended December 31, 2012. The company owner reviewed it and requested that the accountant prepare the statement using the multipe step format so that the components of net income could be analyzed better. Using the information from the single step income statement below, prepare a multiple step income statement.Net Sales $ 1,000,000 Cost of Goods Sold 600,000 Gross Profit $ 400,000 Operating ExpensesGeneral and Administration Expenses 100,000 Salaries Expense 70,000 Selling Expenses 40,000 Depreciation Expense 30,000 Bad debt expense 13,000 Freight Out 5,000 Income from Operations $ 142,000 Other Revenue and GainsInterest Revenue 10,000 Gain on Sale of Equipment 5,000 Other Expenses and LossesInterest Expense 12,000 Income before income taxes 145,000 Income Tax Expense 25,000 Net Income 120,000 Tiger


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LSU ACCT 2000 - Notes

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