Chapter 5 Assignment
Introductory Accounting
Name: Nguyen Mai Phuong
BE5-3:
GENERAL JOURAL
Date Account Titles and Explanation Debit Credit
March. 2 Accounts receivable 800,000
Sales revenue 800,000
2 Cost of goods sold 540,000
Merchandise inventory 540,000
March. 6 Sales returns and allowances 140,000
Accounts receivable 140,000
6 Merchandise inventory 94,000
Cost of goods sold 94,000
March. 12 Cash 646,800
Sales dicounts 13,200
Accounts receivable 660,000
(($800,000 – $140,000) x 2%)
BE5-7:
(a) Net income = Total revenues – Total expenses
= $62,500 – ($28,000 + $1,800 + $10,400 + $3,100)
= $19,200
(b) Prepare a comprehensive income statement
KAREN WEIGEL INC.
Comprehensive Income Statement
For the Year Ended December 31, 2017
Net Income $19,200
Other comprehensive income
Unrealized holding gain on investment securities (net of tax) 400
Comprehensive income $19,600
E5-2:
GENERAL JOURAL
Date Account Titles and Explanation Debit Credit
Sept. 6 Merchandise inventory 1,560
Accounts payable 1,560
(Purchased calculators on account)
Sept. 9 Merchandise nvenntoy 50
Cash 50
(Paid freight on calculators purchased)
Sept. 10 Accounts payable 66
Merchandise inventory 66
(Returned calculators)
Sept. 12 Accounts receivable 690
Sales revenue 690
(Sold calculators)
12 Cost of goods sold 520
Merchandise inventory 520
(Sold calculators)
Sept. 14 Sales returns and allowances 45
Accounts receivable 45
(Granted credit for calculators returned)
14 Merchandise inventory 34
Cost of goods sold 34
(Granted credit for calculators returned)
Sept. 20 Accounts receivable 760
Sales revenue 760
20 Cost of goods sold 570
Merchandise inventory 570
E5-6:
(a) Prepare an income statement
LIEU CO.
Income Statement
For the Month Ended January 31, 2017
Sales
Sales revenue $370,000
Less: Sales returns and allowances $20,000
Sales discounts 8,000 28,000
Net sales 342,000
Cost of goods sold 212,000
Gross profit 130,000
Operating expenses
Salaries and Wages Expense 60,000
Insurance Expense 12,000
Rent Expense 32,000
Freight-out 7,000
Total operating expenses 111,000
Income from operation 19,000
Income tax expense 5,000
Net income $14,000
(b) Prepare a comprehensive income statement
LIEU CO.
Comprehensive Income Statement
For the Month Ended January 31, 2017
Net Income $14,000
Other comprehensive income
Unrealized holding gain on investment securities (net of
1,600
$400 tax)
Comprehensive income $15,600
(c) Calculate the profit margin and the gross profit rate
Profit margin ratio (%) = Net income ÷ Net sales
= $14,000 ÷ $342,000
= 4.09 %
Gross profit rate (%) = Gross profit ÷ Net sales
= $130,000 ÷ $342,000
= 38.0 %
P5-3A:
(a) Journalize the transactions
GENERAL JOURAL
Date Account Titles and Explanation Debit Credit
Apr. 5 Inventory 1,500
Accounts payable 1,500
(To record golf bags, clubs and balls
purchased on account from Arnie.Co, terms
3/10, n/60)
Apr. 7 Inventory 80
Cash 80
(To record payment of freight on golf
bags, clubs and balls purchased)
Apr. 9 Accounts payable 200
Inventory 200
(To record return of goods purchased
from Arnie.Co)
Apr. 10 Accounts receivable 1,340
Sales revenue 1,340
(To record credit sale to members)
10 Cost of goods sold 820
Inventory 820
(To record cost of goods sold to
members)
Apr. 12 Inventory 830
Accounts payable 830
(To record golf shoes, sweaters and other
accessories purchased on account from
Woods sportswear, terms 1/10, n/30)
Apr. 14 Accounts payable 1,300
Inventory 39
Cash 1,261
(To record payment within discount
period)
Apr. 17 Accounts payable 30
Inventory 30
(To record return of goods purchased
from Wood Sportswear)
Apr. 20 Accounts receivable 810
Sales revenue 810
(To record credit sale to members)
20 Cost of goods sold 550
Inventory 550
(To record cost of goods sold to
members)
Apr. 21 Accounts payable 800
Inventory 8
Cash 792
(To record payment to WS within
discount period)
Apr. 27 Sales returns and allowances 80
Accounts receivable 80
(Granted allowances to members)
Apr. 30 Cash 1,220
Accounts receivable 1,220
(Received payments from members)
(b) Prepare ledger accounts
GENERAL LEDGER
Cash
Apr.1 2,500 Apr.7 80
Apr.14 1,261
Apr.30 1,220 Apr. 21 792
Bal. 1,587
Inventory
Apr.1 3,500 Apr. 9 200
Apr.5 1,500 Apr. 10 820
Apr.7 80 Apr.14 39
Apr. 12 830 Apr.17 30
Apr.20 550
Apr.21 8
Bal. 4,263
Common Stock
Apr.1 6,000
Bal. 6,000
Sales Returns and Allowances
Apr.27 80
Bal. 80
Accounts Payable
Apr.9 200 Apr.5 1,500
Apr.14 1,300 Apr.12 830
Apr.17 30
Apr.21 800
Bal. 0
Sales Revenue
Apr.10 1,340
Apr.20 810
Bal. 2,150
Cost of Goods Sold
Apr.10 820
Apr.20 550
Bal. 1,370
Accounts Receivable
Apr.10 1,340 Apr.27 80
Apr.20 810 Apr.30 1,220
Bal. 850
(d) Prepare a trial balance
GRANITE HILLS PRO SHOP
Trial Balance
April 30, 2017
Debit Credit
Cash $1,587
Inventory 4,263
Accounts Receivable 850
Sales Returns and Allowances 80
Cost of Goods Sold 1,370
Common Stock 6,000
Accounts Payable 0
Sales Revenue 2,150
$8,150 $8,150
(e) Prepare an income statement
GRANITE HILLS PRO SHOP
Income Statement
For the Month Ended April 30, 2017
Sales
Sales revenue $2,150
Less: Sales returns and allowances $80
Net sales 2,070
Cost of goods sold 1,370
Gross profits $700
