Homework Answers
| (a) | ||||||||||||||
| DAN WATSON MERCHANDISING | ||||||||||||||
| Effect of Events on Financial Statement | ||||||||||||||
| Event | Assets | = | StockHolder's Equity | Revenue | Expenses | Statement of Cash Flows | ||||||||
| Cash | + | Inventory | = | Common Stock | + | Retained Earnings | - | = | Net Income | |||||
| 1 | 28,500 | + | = | 28,500 | + | - | = | 28,000 | FA | |||||
| 2 | -22,800 | + | 22,800 | = | + | - | = | -22,800 | OA | |||||
| 3a | 31,000 | + | = | + | 31,000 | - | = | 31,000 | 31,000 | OA | ||||
| 3b | + | -17,000 | = | + | - | 17,000 | = | -17,000 | - | NC | ||||
| Total | 36,700 | + | 5,800 | = | 28,500 | + | 31,000 | - | 17,000 | = | 14,000 | 36,200 | ||
| (b) | ||||||||||||||
| DAN WATSON MERCHANDISING | ||||||||||||||
| Income Statement for the year ended December 31 Year 1 | ||||||||||||||
| Particulars | Amount | |||||||||||||
| Revenue | 31,000 | |||||||||||||
| Less : Expenses | -17,000 | |||||||||||||
| Net Income | 14,000 | |||||||||||||
| (C) | ||||||||||||||
| Total Assets | ||||||||||||||
| Cash | 36,700 | |||||||||||||
| Inventory | 5,800 | |||||||||||||
| Total Assets | 42,500 |
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Dan Watson started a small merchandising business in Year 1. The business experienced the following events...
Dan Watson started a small merchandising business in 2018. The business experienced the following events during...
Dan Watson started a small merchandising business in 2018. The
business experienced the following events during its first year of
operation. Assume that Watson uses the perpetual inventory
system.
Acquired $30,000 cash from the issue of common stock.
Purchased inventory for $18,000 cash.
Sold inventory costing $15,000 for $32,000 cash.
Required
Record the events in a horizontal statement model. In the Cash Flow
column, use OA to designate operating activity, IA for investment
activity, FA for financing activity, or NC...
Dan Watson started a small merchandising business In Year 1. The business experienced the following events...
Dan Watson started a small merchandising business In Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual Inventory system. a. Acquired $30,000 cash from the issue of common stock. b. Purchased Inventory for $18,000 cash. c. Sold Inventory costing $15,000 for $32,000 cash. Required a. Record the events in a horizontal financial statements model. b. Prepare an Income statement for Year 1 (use the multistep format). c. What is...
Dan Watson started a small merchandising business in Year 1. The business experienced the following events...
Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $33,000 cash from the issue of common stock. 2. Purchased inventory for $26,400 cash. 3. Sold inventory costing $16,400 for $29,000 cash. Required a. Record the events in general journal format. b. Post the entries to T-accounts. c. Determine the amount of gross margin. d. What is the...
I cannot figure out what is incorrect in what I did. I don't understand what the...
I cannot figure out what is incorrect in what I did. I don't
understand what the red x's are for!
Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO 3-1 Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. . Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $18,000 cash. 3. Sold...
Milo Clothing experienced the following events during 2018, its first year of operation: Acquired $18,500 cash...
Milo Clothing experienced the following events during 2018, its
first year of operation:
Acquired $18,500 cash from the issue of common stock.
Purchased inventory for $6,500 cash.
Sold inventory costing $3,900 for $6,630 cash.
Paid $950 for advertising expense.
Required
Record the events in a horizontal statement model. In the Cash
Flow column, use OA to designate operating activity, IA for
investment activity, FA for financing activity, or NC for net
change in cash. If the element is not affected...
Expert Computers was started in Year 1. The company experienced the following accounting events during its...
Expert Computers was started in Year 1. The company experienced the following accounting events during its first year of operation 1. Started business when it acquired $40,000 cash from the issue of common stock 2. Purchased merchandise with a list price of $32,000 on account, terms 2/10,n/30. 3. Paid off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $28,000 Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $16.000 5....
Expert Computers was started in Year 1. The company experienced the following accounting events during its...
Expert Computers was started in Year 1. The company experienced the following accounting events during its first year of operation: 1. Started business when it acquired $40,000 cash from the issue of common stock. 2. Purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. 3. Pald off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $28,000. Credit terms were 120, 1/30. The merchandise had cost Expert Computers $16,000....
Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired...
Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $17,500 cash from the issue of common stock. 2. Purchased inventory for $5,200 cash. 3. Sold inventory costing $3,120 for $5,304 cash. 4. Paid $800 for advertising expense. Required Record the events in a horizontal financial statements model. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash....
Expert Computers was started in 2018. The company experienced the following accounting events during his first...
Expert Computers was started in 2018. The company experienced the following accounting events during his first year of operation 1. Started business when It acquired $75,000 cash from the issue of common stock 2. Purchased merchandise with a list price of $59,000 on account, terms 3/10, 1/30 3. Pald off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $47,900. Credit terms were 2/20, 1/30. The merchandise had cost Expert Computers $28,700. 5....
Seved 2. 15 Doints During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on account...
Seved 2. 15 Doints During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on account Hardy sold inventory on account that cost $18,800 for $28.100. Cash payments on accounts payable were $15,600. There was $25,000 cash collected from accounts receivable Hardy also paid $4,500 cash for operating expenses. Assume that Hardy started the accounting period with $20,500 in both cash and common stock Required a. Record the events in a horizontal statement model. In the Cash Flow column, use...
Dan Watson started a small merchandising business in 2018. The
business experienced the following events during its first year of
operation. Assume that Watson uses the perpetual inventory
system.
Acquired $30,000 cash from the issue of common stock.
Purchased inventory for $18,000 cash.
Sold inventory costing $15,000 for $32,000 cash.
Required
Record the events in a horizontal statement model. In the Cash Flow
column, use OA to designate operating activity, IA for investment
activity, FA for financing activity, or NC...
Dan Watson started a small merchandising business In Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual Inventory system. a. Acquired $30,000 cash from the issue of common stock. b. Purchased Inventory for $18,000 cash. c. Sold Inventory costing $15,000 for $32,000 cash. Required a. Record the events in a horizontal financial statements model. b. Prepare an Income statement for Year 1 (use the multistep format). c. What is...
Dan Watson started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. 1. Acquired $33,000 cash from the issue of common stock. 2. Purchased inventory for $26,400 cash. 3. Sold inventory costing $16,400 for $29,000 cash. Required a. Record the events in general journal format. b. Post the entries to T-accounts. c. Determine the amount of gross margin. d. What is the...
I cannot figure out what is incorrect in what I did. I don't
understand what the red x's are for!
Exercise 3-3 Effect of inventory transactions on financial statements: Perpetual system LO 3-1 Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. . Acquired $30,000 cash from the issue of common stock. 2. Purchased inventory for $18,000 cash. 3. Sold...
Milo Clothing experienced the following events during 2018, its
first year of operation:
Acquired $18,500 cash from the issue of common stock.
Purchased inventory for $6,500 cash.
Sold inventory costing $3,900 for $6,630 cash.
Paid $950 for advertising expense.
Required
Record the events in a horizontal statement model. In the Cash
Flow column, use OA to designate operating activity, IA for
investment activity, FA for financing activity, or NC for net
change in cash. If the element is not affected...
Expert Computers was started in Year 1. The company experienced the following accounting events during its first year of operation 1. Started business when it acquired $40,000 cash from the issue of common stock 2. Purchased merchandise with a list price of $32,000 on account, terms 2/10,n/30. 3. Paid off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $28,000 Credit terms were 1/20, n/30. The merchandise had cost Expert Computers $16.000 5....
Expert Computers was started in Year 1. The company experienced the following accounting events during its first year of operation: 1. Started business when it acquired $40,000 cash from the issue of common stock. 2. Purchased merchandise with a list price of $32,000 on account, terms 2/10, n/30. 3. Pald off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $28,000. Credit terms were 120, 1/30. The merchandise had cost Expert Computers $16,000....
Milo Clothing experienced the following events during Year 1, its first year of operation: 1. Acquired $17,500 cash from the issue of common stock. 2. Purchased inventory for $5,200 cash. 3. Sold inventory costing $3,120 for $5,304 cash. 4. Paid $800 for advertising expense. Required Record the events in a horizontal financial statements model. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash....
Expert Computers was started in 2018. The company experienced the following accounting events during his first year of operation 1. Started business when It acquired $75,000 cash from the issue of common stock 2. Purchased merchandise with a list price of $59,000 on account, terms 3/10, 1/30 3. Pald off one-half of the accounts payable balance within the discount period. 4. Sold merchandise on account for $47,900. Credit terms were 2/20, 1/30. The merchandise had cost Expert Computers $28,700. 5....
Seved 2. 15 Doints During Year 1, Hardy Merchandising Company purchased $25,000 of inventory on account Hardy sold inventory on account that cost $18,800 for $28.100. Cash payments on accounts payable were $15,600. There was $25,000 cash collected from accounts receivable Hardy also paid $4,500 cash for operating expenses. Assume that Hardy started the accounting period with $20,500 in both cash and common stock Required a. Record the events in a horizontal statement model. In the Cash Flow column, use...
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