Homework Answers
| Product oosts are the costs which are directly related to the costs of manufacturing of the product . Ex: Purchases of Raw material | |||||||||||||
| Period costs are costs which are in the nature of administrative or selling or distribution and allocated over the period of time rather than the product. Ex: Rent | |||||||||||||
| A) | |||||||||||||
| Transaction | Period Cost | Product Cost | N/A | ||||||||||
| ( Selling and Administrative) | |||||||||||||
| 1 | Acquired Cash from issue of common stock | Received money , so not a cost . | |||||||||||
| 2 | Purchased Inventory on account | 70,000.00 | |||||||||||
| 3 | Freight paid for material in (2)above | 1,080.00 | |||||||||||
| 4 | Sale of Inventory | (50,000.00) | Not a cost but reduction in cost, product cost | ||||||||||
| 5 | Freight on Goods sold | 1,530.00 | |||||||||||
| 6 | Goods sold returned by customer (in 4) above | 2,250.00 | |||||||||||
| 7 | Cash collected from customer | Not a cost | |||||||||||
| 8 | Paid cash to accounts payable | Not a cost | |||||||||||
| 9 | Advertising expense | 3,100.00 | |||||||||||
| 10 | Insurance expenses | 3,820.00 | |||||||||||
| B | |||||||||||||
| Horizontal Statements for year 1 | |||||||||||||
| Balance sheet | Income Statement | Statement of Cash Flow | |||||||||||
| Assets | Liabilities | Shareholders' Equity | |||||||||||
| Event | Cash | Accounts receivable | Inventory | = | Accounts payable | Common Stock | Retained earnings | Revenue | Expenses | Net Income | |||
| 1 | Stock | 100,000 | 100,000 | - | 100,000.00 | FA | |||||||
| 2 | Purchase | 70,000 | 70,000 | - | |||||||||
| 3 | Freight | (1,080) | 1,080 | (1,080) | (1,080.00) | OA | |||||||
| 4a | Sold Inventory | 95,000 | 95,000 | 50,000 | 45,000 | OA | |||||||
| 4b | Cost | (50,000) | - | ||||||||||
| 5 | Paid freight | (1,530) | 1,530 | (1,530) | (1,530.00) | OA | |||||||
| 6a | Ret sale | (4,400) | (4,400) | (4,400) | |||||||||
| 6b | Ret Inv | 2,250 | 2,250 | 2,250 | |||||||||
| 7 | Collected AR | 77,900 | (77,900) | - | 77,900.00 | OA | |||||||
| 8 | Paid AP | (61,000) | (61,000) | - | (61,000.00) | OA | |||||||
| 9 | Paid exp | (3,100) |
Know the answer?
Add Answer to:
|
The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash. 4. Sold inventory on account that cost $38,000 for $71,000. 5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the...
The Pet Store experienced the following events for the Year 1 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash. 4. Sold Inventory on account that cost $38,000 for $71,000. 5. Freight cost on the goods sold in Event 4 was $620. The goods were shipped FOB destination. Cash was paid for the...
The Pet Store experienced the following events for the 2018
accounting period:
Acquired $60,000 cash from the issue of common stock.
Purchased $65,000 of inventory on account.
Received goods purchased in Event 2 FOB shipping point; freight
cost of $900 paid in cash.
Sold inventory on account that cost $38,000 for $71,000.
Freight cost on the goods sold in Event 4 was $620. The goods were
shipped FOB destination. Cash was paid for the freight
cost.
Customer in Event 4...
Effect of product cost and period cost: Horizontal statements model The Pet Store experienced the following events for the 2018 accounting period: 1. Acquired $60,000 cash from the issue of common stock. 2. Purchased $65,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point, freight cost of $900 paid in cash. 4. Sold inventory on account that cost $38,000 for $71,000. 5. Freight cost on the goods sold in Event 4 was $620. The goods...
Please do it clear so I can do it well.
4. value 10.00 points The Pet Store experienced the following events for the 2016 accounting perlocd 1. Acquired $60,000 cash from the issue of common stock 2. Purchased $65,000 of in on account 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash. 4. Sold inventory on account that cost $38,000 for $71,000 Event 4 was $620. The goods were shipped FOB destination....
Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions and that financial statement data are prepared in accordance with GAAP. Skipped eBook 1. Acquired $68,000 cash by issuing common stock 2. Paid $8,700 for the materials used to make its products, all of which were started and completed during the year. 3. Paid salaries of $4,500 to selling and...
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...
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....
With explanation please
The following events affected the Hadley Company during the 2019 accounting period: 1. Purchased merchandise on account that cost $6,138. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $60 cash. 3. Sold merchandise that cost $3,857 for $13,306 cash. 4. Delivered merchandise to customers in Event 3 under terms FOB destination with freight costs amounting to $292 cash. What is the balance in Inventory as a result of these transactions?
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....