Financial accounting 5th edition Kimmel Weygandt Kieso Chapter 5 Brief Exercises 1,2,3 & 4
BE5-1 Presented here are the components in pedersen Company's income statement Determine the
missing amounts
Sales
Cost of Goods Sold
Gross Profit
71,200
70,000
30,000
108,000
71,900
109,600
Operating Expenses
Net Income
&nbs p;
&n bsp;
10800
46200
29500
Some information is missing or incorrect data. You provide the correct data the answers will be given
to you.
BE5-2 Prior Company buys merchanidse on account from wood company. The selling price of the
goods is 900 dollars. ad the cost of the goods sold is 630 dollars Both companies use perpetual
inventory systems Journalize the transacations on the books of both companies
Prior Company
Wood Company
Inventory Dr. 900
Account Receivable Dr.900
Accounts payable Cr.900
Sales Cr.900
Cost of goods sold Dr. 630
Inventory
Cr. 630
BE 5-3 Prepare the journal entries to record the following trasacations on Ramirez Company's books
using a perpetual inventory system
A on Marhc 2 Ramirez Company sold 800,000 of merchandise to Ikerd Company terms 2/10 n/30 The
cost of the merchadise sold was 540,000
Account Receivbale Dr. 800000
Sales Cr.800000
Cost of goods sold Dr.540000
Inventory Cr.540000
B ON March 6 Ikerd Company retuned 110,000 of the merchadise purchased on March 2 trhe cost of
the merchandise returned was 75,000
Sales return Dr.110000
Account Receivable Cr.110000
Inventory Dr75000
Cost of goods sold Cr.75000
C O March 12 Ramirez Company received the balance due from Ikerd Company
Cash Dr.676200
Sales Discount Dr.13800
Account Receivbale Cr.690000
BE 5-4 From the information in BE 5-3 prepare the journal entries to record these transactios on Ikerd
Company's boooks under a perpetural inventory system
Inventory Dr. 800000
Account Payable Cr.800000
Accounts payable Dr.110000
Inventory Cr.110000
Accounts payable Dr. 690000
Cash Cr.676200
Inventory Cr.13800
BE 5-5 Carpenter Company provice this onformation for the month ended October 31, 2010 sales on
credit 300,000 cash sales 150,000 sales discounts 5000 and sales returs ad allowaces 22,000 Prepare
the sales revenues section of the income statement based on this infromation
Credit sales
300000
Cash sales
150000
Gross sales
450000
Less
Sales discount
5000
Sales return and allowances
22000
Net Sales
Optional Information:
Level/Year: junior
Subject: financial accounting
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27000
423000