P 5-4Southern Cross Corporation supplies you with the followinginformation applicable to the current year, December 31, 2019. Thecompany uses the perpetual inventory system.Delivery expenseSalesMerchandise inventory (Dec. 31)Cost of goods soldOffice supplies expenseSales returns and allowancesO SearchSalaries expenseUnused supplies33Required:1. Prepare an income statement. List expenses other than cost ofgoods sold as other expenses. Assume all accounts have normalbalances.ALDU$ 2,000100,00015,00070,0007,00010,0004,0005,0002. Prepare all required closing entries. Include general ledger accountnumbers and a brief description for each entry.1P

Name: P 5-4Southern Cross Corporation supplies you with the followinginform
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Description: P 5-4Southern Cross Corporation supplies you with the followinginformation applicable to the current year, December 31, 2019. Thecompany uses the perpetual inventory system.Delivery expenseSalesMerchandise inventory (Dec. 31)Cost of goods soldOffice

Closing Entries are the entries required to close the temporary account. Temporary accounts are…

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P 5-4 Southern Cross Corporation supplies you with the following information applicable to the current year, December 31, 2019. The company uses the perpetual inventory system. Delivery expense Sales Merchandise inventory (Dec. 31) Cost of goods sold Office supplies expense Sales returns and allowances Salaries expense Unused supplies $ 2,000 100,000 15,000 70,000 7,000 10,000 4,000 5,000 Required: 1. Prepare an income statement. List expenses other than cost of goods sold as other expenses. Assume all accounts have normal balances. 2. Prepare all required closing entries. Include general ledger account numbers and a brief description for each entry.

P 5-4 Southern Cross Corporation supplies you with the following information applicable to the current year, December 31, 2019. The company uses the perpetual inventory system. Delivery expense Sales Merchandise inventory (Dec. 31) Cost of goods sold Office supplies expense Sales returns and allowances Salaries expense Unused supplies $ 2,000 100,000 15,000 70,000 7,000 10,000 4,000 5,000 Required: 1. Prepare an income statement. List expenses other than cost of goods sold as other expenses. Assume all accounts have normal balances. 2. Prepare all required closing entries. Include general ledger account numbers and a brief description for each entry.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...

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Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019. Edwards accounting records provide the following data for the remainder of 2019 for one of the items the company sells: Â Edwards uses a periodic inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 4. Prepare the journal entries to record these transactions assuming Edwards chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 6. CONCEPTUAL CONNECTION Refer to Problem 6-67B and compare your results. What are the differences? Be sure to explain why the differences occurred.
Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.
Goods in Transit Gravais Company made two purchases on December 29, 2019. One purchase for 3,000 was shipped FOB destination, and the second for 4,000 was shipped FOB shipping point. Neither purchase had been received nor paid for on December 31, 2019. Required: Which of these purchases, if either, does Gravais include in inventory on December 31, 2019? What is the cost?
The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Beginning inventory, purchases, and sales for Item Delta are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on July 24 and (b) the inventory on July 31.
Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.
( Appendix 6B) Inventory Costing Methods Grencia Company uses a periodic inventory system. For 2018 and 2019, Grencia has the following data (assume all purchases and sales are for cash): Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68B, compare your answers. What are the differences? Be sure to explain why any differences occurred.
Periodic Inventory System Raynolde Company uses a periodic inventory system. At the end of the year, the following information is available: Required: Prepare a schedule to compute Raynoldes cost of goods sold.
Under the periodic inventory system, the ending inventory is entered by debiting Merchandise Inventory and crediting Income Summary.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for B76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).