Quiz Review Ch 5, 6, 7

Soal No. 1

You are provided with the following information for Senta Ltd. For the month ended October 31, 2020.
Senta uses a periodic method for inventory.

Date Description Units Unit Cost of Selling Price

October 1 Beginning Inventory 60 $24

October 9 Purchase 120 $26

October 11 Sale 100 $35

October 17 Purchase 70 $27

October 22 Sale 65 $40

October 25 Purchase 80 $28

October 29 Sale 120 $40

Instructions

Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under
each of the following methods.

1. FIFO
COST OF GOODS AVAILABLE FOR SALE

DATE EXPLANATION UNIT UNIT COST TOTAL COST

01-Okt BEGINNING INVENTORY 60 24 1.440,00

09-Okt PURCHASE 120 26 3.120,00
17-Okt PURCHASE 70 27 1.890,00
25-Okt PURCHASE 80 28 2.240,00
330 8.690,00

ENDING INVENTORY IN UNITS :

UNIT AVAILABLE FOR SALE 330

SALES ( 100 + 65 +120 ) 285
UNIT REMAINING IN ENDING
INVENTORY 45
SALES REVENUE

DATE UNITS UNIT TOTAL

PRICE SALES

11-Okt 100 35 3.500,00

22-Okt 65 40 2.600,00
29-Okt 120 40 4.800,00
285 10.900,00
 ( A)
1. FIFO
(I) ENDING INVENTORY
25-Okt 45 @ 28 1.260,00

( ii ) COGS
COGA 8.690,00
LESS : ENDING INVENTORY 1.260,00
COGS 7.430,00

( III ) GROSS PROFIT

SALES REVENUE 10.900,00
COGS 7.430,00
GROSS PROFIT 3.470,00

(IV) GROSS PROFIT RATE

GROSS PROFIT 3.470,00
NET SALES 10.900,00
= 31,83%
2. Average cost
(B)
2. AVERAGE COST
(I) ENDING INVENTORY ) purchase qty
45 X( 8,690 / 330) 1.185,00 8.690,00 330

( II ) COGS
COGA 8.690,00
LESS : ENDING INVENTORY 1.185,00
COGS 7.505,00

( III ) GROSS PROFIT

SALES REVENUE 10.900,00
COGS 7.505,00
GROSS PROFIT 3.395,00

(IV) GROSS PROFIT RATE

GROSS PROFIT 3.395,00 31,15
NET SALES 10.900,00
Soal No. 2

Timmins Grow-Fast spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020,
the company’s Cash account per its general ledger showed a balance of $ 6,738.90. The bank statement
from Manchester Bank on that date showed the following balance:

Manchester Bank

Checks and Debits Deposits and Credits Daily Balance

5-31 6,968.00

A comparison of the details on the bank statement with the details in the Cash account revealed the
following facts.

1. The statement included a debit memo $40 for the printing of additional company checks. CB

2. Cash sales of $883.15 on May 12 were deposited in the bank. The cash receipts entry and the
deposit slip were incorrectly made for $933.15. The bank credited Timmins for the correct amount. CB

3. Outstanding checks at May 31 totaled $276.25, and deposits in transit were $1,880.15 BS

4. On May 18 the company issued check no. 1181 for $685 to H. Moses, on account. The check,
which cleared the bank in May, was incorrectly journalized and posted by Timmins for $658. CB

5. $2,690 was collected by the bank for Timmins on May 31 through electronics-funds-transfer. CB

6. Included with the canceled checks was a check issued by Tomins to C. Pernod for $360 that was
incorrectly charged to Timmins by the bank. BS

7. On May 31, the bank statement showed an NSF charge of $380 for a check issued by Sara
Ballard, a customer, to Timmins on account. CB

Instructions

a. Prepare the bank reconciliation at May 31, 2020.

 Timmins Grow-Fast
Bank Reconciliation
May 31, 2020

Cash balance per bank statement 6.968,00

Add: Deposit in Transit 1.880,15
Bank Error - C. Pernod 360,00 2.240,15
9.208,15
Less: Outstanding checks 276,25
Adjusted Cash balance per bank 8.931,90

Cash balance per books 6.738,90

Add : EFT 2.690,00
9.428,90
Less: NSF 380,00
Error in May 12 deposit 50,00
Error in recording check 1181 27,00
Check printing charges 40,00 497,00
8.931,90

b. Prepare the necessary adjusting entries for Timmins at May 31, 2020
Cash 2.690
Account Receivable 2.690

Account Receivable 380

Cash 380

Sales Revenue 50
Cash 50

Account Payable 27
Cash 27

Miscellaneous Exp 40
Cash 40
Soal No. 3

On December 1, 2020, Jurczyk Distributing had the following account balances.

Debit Credit
Cash $7,200 Accumulated $2,200
Depr-Equipment
Account $4,600 Accounts Payable $4,500
Receivable
Inventory $12,000 Salaries and $1,000
Wages Payable
Supplies $1,200 Share Cap- $30,000
Ordinary
Equipment $22,000 Retained Earnings $9,300
Total $47,000 Total $47,000

During December, the company completed the following summary transactions.

December 6 Paid $1,600 for salaries and wages due employees, of which $600 is for December and
$1,000 is for November salaries and wages payable.

Salaries and wages expense 600

Salaries and Wages payable 1,000

Cash 1,600

December 8 Received $2,100 cash from customers in payment of account (no discount allowed)

Cash 2,100

Account Receivable 2,100

December 10 Sold merchandise for cash $6,600. The cost of the merchandise sold was $4,100

Cash 6,600

Sales Revenue 6,600

COGS 4,100

Inventory 4,100

December 13 Purchased merchandise on account from Gong Co. $9,000, terms 2/10, n/30
Inventory 9,000

Account Payable 9,000

December 15 Purchased supplies for cash $2,000

Supplies 2,000

Cash 2,000

December 18 Sold merchandise on account $12,000, terms 3/10, n/30. The cost of the merchandise
sold was $8,400

Account Receivable 12,000

Sales Revenue 12,000

COGS 8,400

Inventory 8,400

December 20 Paid salaries and wages $1,800

Salaries and wages expense 1,800

Cash 1,800

December 23 Paid Gong Co. in full, less discount

Account Payable 9,000

Cash 8,820

Inventory (2% x 9,000) 180

December 27 Received collections in full, less discounts, from customers billed on December 18.

Cash 11,640

Sales Disc(3%x12,000) 360

Account Receivable 12,000

Instructions:

Journalize the December transactions using a perpetual inventory system