Question

Consider the following transactions for Toys and More May 8 Toys and More buys $113,300worth of Megollock seys on accourt with crodit ems ef 2/10, no. Toys and More rctus S11,250 of the merchandise to Mepolileck dac to damage during shipment 12 Toys and More paid the amoust due, less the retern and discoust. Requirements Journalize the purchase transactions. Explanations are not required. 1. In the final analysis, how much did the inventory cost Toys and More? 2. s5-9 Journalizing closing entries Learning Objective 4 Rocky RV Center's accounting records include the following accounts at December 31, 2018 Cost ef Geods Sold $372,000 Accuulaned Depreciation Building 5 38,000 Acceunts Payable 16000 Cash 47.000 636 500 Rent Expense 26.000 Sales Revenue Building Depreciation Expesse Bailding 13,000 113,000 Rocky, Capital Rocky, Withdrawals 198 100 s8.000 Merchandise Inventory 239,600 Inteest Revenae 14,000 Notes Receivable 34,000 Requirements 1. Journalize the required closing entries for Rocky 2. Determine the ending balance in the capital account. E6-5 Rushe Inc. uses a periodic inventory system Its records show the following for the Call ivetory nd co d noath of May in which 74units were sold odll ng FIRO, am ost and LUFO in a peridc ineto Explanation Uaits Unit Cost Total Cost Date 30 25 $ 9 10 $270 250 418 May lnentory 15 Parchase 24 Purchase Total $938 - ustractions Caulate the ending inentory at May 31 using the (a) FIFO, b) LIFO, and (c) avage- cos methods (For averagecost, round the aerage unit cost to three decimal places) Prove the amount allocated to cost of goods sold under each method

Answer 1

А во | Credit ($) Debit ($) $113,300.00 $ 113,300.00 7 $ 11,250.00 Journal Entries Date Account Titles 8-May Inventory Accounts Payable (To record the Purchase of Inventory) 12-May Accounts Payable Inventory (To record the damaged goods returned) 15-May Accounts Payable Sales Discount Cash (To record the Cash paid to Supplier) $ 11,250.00 $ 102,050.00 $ 2,041.00 $ 100,009.00 Cost of Inventory 16 Purchased $ 17 Less: Returned $ 18 Cost of Inventory $ 113,300.00 11,250.00 102,050.00 19

3 Credit ($) Debit ($) $636,000.00 $ 34,000.00 $ 670,000.00 $ 411,000.00 Journal Entries Date Account Titles 31-Dec Sales Revenue Interest Revenue Income Summary (To close the revenue accounts) 31-Dec Income Summary Cost of Goods Sold Rent Expense Depreciation Expense - Building (To close the Expenses accounts) 31-Dec Income Summary Rocky, Capital (To close the Net Income) 31-Dec Rocky, Capital Rocky, Withdrawls (To record the close of Withdrawls) $ 372,000.00 $ 26,000.00 $ 13,000.00 $259,000.00 $ 259,000.00 $ 58,000.00 $ 58,000.00 Statement of Owner's Capital Rocky, Capital. Beginning Add: Net Income $198,100.00 $ 259,000.00 $457,100.00 $ 58,000.00 $399,100.00 Less: Rocky, Withdrawls Rocky, Capital, Ending

Q V AA | 4 5 6 7 8 M N O P Periodic Inventory - FIFO | Available for sale Date Units PU Amount ($) 1-May 30 $ 9.00 $ 270.00 15-May 25 $ 10.00 $ 250.00 24-May 38 $ 11.00 $ 418.00 Total 93 $ 938.00 SR S T U Periodic Inventory - LIFO Available for sale Date Units PU Amount ($) 1-May 30 $ 9.00 $ 270.00 15-May 25 $ 10.00 $ 250.00 24-May 38 $ 11.00 $ 418.00 Total 93 $ 938.00 W X Y Z Periodic Inventory - Weighted Average Available for sale Date Units PU Amount ($) 1-May 30 $ 9.00 $ 270.00 15-May 25 $ 10.00 $ 250.00 24-May 38 $ 11.00 $ 418.00 Total 93 $ 10.09 $ 938.00 10 Cost of Goods Sold - 74 units 11 Date Units PU Amount (S) 12 1-May 30 $ 9.00 $ 270.00 13 15-May 25 $ 10.00 $ 250.00 14 24-May 19 $ 11.00 $ 209.00 Total 74 $ 729.00 Cost of Goods Sold - 74 units Date Units PU Amount (5) 24-May 38 $ 11.00 $ 418.00 15-May 25 $ 10.00 $ 250.00 1-May 11 $ 9.00 $ 99.00 Total 74 $ 767.00 Cost of Goods Sold - 74 units Date Units PU Amount ($) 74 $ 10.09 $ 746.37 Total 74 $ 746.37 Date Ending Inventory Units PU 19 S 10.09 Amount (3) $ 191.63 18 Date 19 24-May Ending Inventory Units PU 19 $ 11.00 Amount ($) $ 209.00 Date 1-May Ending Inventory Units PU 19 $ 9.00 Amount ($) $ 171.00