baf3m1 - merchandising review sheet - answers

advertisement
Unit Review Sheet Answers
Chapter 7/Unit 14
Review Sheet 14/Merchandising Accounts
Answer or complete the following.
service, merchandising, and manufacturing
.
K, C 1. (a) Name three types of business: __________________________________________________
merchandise
(b) Goods bought for resale are called _________________________
.
Merchandise Inventory
(c) The value of all merchandise on hand is recorded in the ________________________
account.
Purchases
(d) Merchandise purchased for resale is recorded in the ______________________
account on the
debit
___________________________
side.
Purchases and credit ______________
Accounts Payable.
(e) To record merchandise purchased on account, debit __________
(f) The cost of transporting merchandise from the supplier to the buyer’s place of business is
Transportation-in or Transportation on Purchases
recorded in the ________________________________________________________
account.
Delivery Expense account.
(g) The cost of delivering merchandise to customers is recorded in the _______________
(h) A special account used to record goods returned by customers or allowances on the price of
Sales Returns and Allowances
defective goods is called the _____________________________________________
account.
Sales Returns and Allowances
(i) To record a cash refund to a customer for goods returned, debit________________________
Cash
and credit ___________
.
(j) When goods that were originally sold on account are returned by a customer, debit
Sales
Returns and Allowances and credit ____________________________
Accounts Receivable
_________________________
.
Cash
(k) A cash refund for merchandise returned to a creditor is recorded by debiting _____________
Purchases Returns and Allowances
and crediting____________________________________
.
(l) A credit invoice received for goods bought on account and returned to the creditor is recorded
Accounts Payable
Purchases Returns and Allowances .
by debiting _____________________
and crediting ________________________________
credit invoice
(m) The source document that records goods returned is the ______________________________
.
K, C, A 2. What account is debited for each of the following items purchased by a sporting goods store?
Store Equipment
(a) a cash register _______________________________________________________________
Purchases
(b) 20 pairs of skates ____________________________________________________________
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
1
Chapter 7/Unit 14
Review Sheet 14/Merchandising Accounts (cont.)
Delivery Expense
(c) gas and oil for the delivery truck ________________________________________________
Purchases
(d) 1 gross tennis balls ___________________________________________________________
Office Supplies
(e) 5000 blank sales invoice forms for the accountant’s use ______________________________
Advertising Expense
(f) signs for a special sale ________________________________________________________
K, C 3. Complete the following. Where appropriate, indicate your response with an underline.
Cost of
(a) The income statement for a merchandising company has three sections: Revenue, _________
Goods Sold
____________________
, and Expenses.
revenue
(b) The Sales Returns and Allowances account goes in the ______________________________
section of the income statement.
Net Sales
(c) Sales  Sales Returns and Allowances = _________________________________________
.
Net Purchases
(d) Purchases  Purchases Returns and Allowances = __________________________________
.
(e) Transportation on Purchases increases/decreases the cost of merchandise purchased.
schedule of cost of goods sold
(f) The cost of goods sold is determined by completion of the____________________________
________________________________________ .
current asset
(g) Merchandise Inventory appears in the _____________________
section of the balance sheet.
a physical inventory
(h) An actual count of all merchandise on hand is _____________________________________
.
K, C, A 4. (a) If sales are $80 000 and sales returns and allowances are $1200, then net sales are $ _______
78 800 .
(b) Sales are $30 000, Cost of Goods Sold is $18 000, and Expenses are $8000.
What is the gross profit?
12 000
$____________
What is the net income/net loss?
4000
$____________
(c) Determine the cost of goods sold for each of the following.
(1) Jan. 1 Inventory $15 000; Purchases $10 000; Jan. 31 Inventory $13 000.
12 000
Cost of goods sold = $ __________________
2
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter 7/Unit 14
Review Sheet 14/Merchandising Accounts (cont.)
(2) Jan. 1 Inventory $80 000; Purchases $100 000; Purchases Returns and Allowances
$8000; Jan. 31 Inventory $60 000.
112 000
Cost of goods sold = $ __________________
(3) May 1 Inventory $30 000; Purchases $20 000; Purchases Returns and Allowances $1000;
Transportation on Purchases $2000; May 31 Inventory $33 000.
18 000
Cost of goods sold = $ __________________
K, C, A 5. Use the following account totals to determine the net income or net loss for June: Sales
$120 000; Sales Returns and Allowances $2500; June 1 Merchandise Inventory $120 000;
Purchases $70 000; Purchases Returns and Allowances $2900; Transportation on Purchases
$4000; June 30 Merchandise Inventory $100 000; Selling Expenses $20 000; Office
Expenses $15 000.
8600
Net Income/Net Loss (Underline whichever is correct.) = $ _____________
K, C, A 6. Explain the difference between the periodic and perpetual inventory methods. In your answer
include the accounts used in each system.
The periodic method uses Purchases, Purchases Returns and Allowances, and Merchandise
_____________________________________________________________________________
Inventory accounts. The perpetual method uses Cost of Goods Sold and Merchandise
_____________________________________________________________________________
Inventory accounts. In the perpetual method, the Merchandise Inventory and Cost of Goods
_____________________________________________________________________________
Sold accounts are continuously updated. The accounts are changed every time a sale or
_____________________________________________________________________________
a purchase transaction occurs. In the periodic method, Merchandise Inventory is not
_____________________________________________________________________________
continuously updated. The account is changed at the end of the fiscal period, when a
_____________________________________________________________________________
physical count of all merchandise on hand is made.
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
3
Chapter 7/Unit 14
Review Sheet 14/Merchandising Accounts (cont.)
K, C, A 7. Prepare journal entries (journal page 94) for the following transactions for a company that uses
the perpetual inventory method. Use the journal provided at the end of this review sheet.
Jul. 10
11
15
17
31
4
Purchase invoices received:
No. M179 from Acme Wholesale for $2000 in merchandise, dated July 5, terms net 30.
No. 859 from Speedy Delivery, $200 for charges related to the purchase of
merchandise, net 30, invoice date July 2.
No. 1118 from Northern Inc. for $1500, dated July 7, for merchandise, terms net 10.
Sold goods for $300 cash. The cost of the goods was $200.
Credit Invoice C-420 received from Acme Wholesale for $300 of damaged goods
returned to Acme.
Issued Cheque 333 for $1500 to Northern Inc. to pay invoice dated July 7.
Issued Cheque 334 for $1700 in payment of July 5 invoice.
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Chapter 7/Unit 14
Review Sheet 14/Merchandising Accounts (cont.)
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
5
TAXES
Cash
452
Sales
400
HST Payable 52
Purchases
HST Recoverable
10,000
1300
Accounts Payable
6
11,300
Copyright © 2002 Pearson Education Canada Inc., Toronto, Ontario
Download
Study collections