Study Guides (390,000)
CA (150,000)
Ryerson (10,000)
ACC 100 (100)
Midterm

ACC 100 Study Guide - Midterm Guide: Gross Profit, Income Statement, Historical Cost


Department
Accounting
Course Code
ACC 100
Professor
Else Grech
Study Guide
Midterm

This preview shows page 1. to view the full 5 pages of the document.
FOB Shipping Point / Destination QUESTION
You run a wholesale business, Genoma Inc., selling inventory to small retail stores. During the
month of July, 2016, you have the following transactions. Record each of the transactions into
the expanded accounting equation using account names. The chart has been provided for you.
Answer the questions after completing the chart.
Date Description
July 1 Have opening balances as follows: cash of $7,289, inventory of $4,260, owner's
capital of $15,000, and retained earnings of $3,451.
July 2 Purchased inventory from PJG Inc. for $5,900, terms 2/10, n/30, FOB shipping
point.
July 3 The appropriate party paid $130 freight on the purchase.
July 7 Returned $1,000 of inventory to PJG Inc. because it was the wrong model. The
return was shipped FOB shipping point.
July 8 The appropriate party paid $95 freight on the return.
July 9 Sold inventory to Vindi Inc. for $6,800 on account, terms 1/10, n/30. The cost of the
merchandise was $4,400. Shipping terms were FOB destination.
July 10 The appropriate party paid $100 freight on the sale.
July 11 Paid PJG Inc. for the purchase on July 2.
July 13 Some of the inventory sold to Vindi Inc. on July 9, with a sales price of $900 and a
cost of $600, was returned because it was the wrong colour. It was shipped FOB
shipping point and returned to inventory.
July 14 The appropriate party paid $85 freight on the return.
July 17 Purchased inventory from Namboni Inc. for $920 cash, FOB destination.
July 18 The appropriate party paid $25 freight on the purchase.
July 19 Vindi Inc. paid for the sale on July 9.
Continued on the next page!!
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Only page 1 are available for preview. Some parts have been intentionally blurred.

July 20 Received a $120 cash refund from Namboni Inc. for damaged inventory that was
returned. It was shipped FOB shipping point.
July 21 The appropriate party paid $15 freight on the return.
July 23 Sold inventory to Hinderling Ltd. for $7,800, terms 3/5, n/15. The cost of the
merchandise was $5,600. Shipping terms were FOB shipping point.
July 24 The appropriate party paid $130 freight on the sale.
July 27 Gave an allowance of $580 to Hinderling Ltd. for inventory that was the wrong
model. They have agreed to keep it so no inventory was returned.
July 28 Hinderling Ltd. paid for the sale on July 23.
Cash
Accounts
Receivable
Inventory
Accounts
payable
Owner's
Capital
Retained
earnings
Sales Revenue
Sales returns
and
allowances
Sales
discounts
Cost of goods
sold
Shipping
Expenses
Opening
Balances
7,289.00 0.00 4,260.00 0.00 15,000.00 3,451.00 0.00 0.00 0.00 0.00 0.00
Jul-01
Jul-02
5,900.00 5,900.00
Jul-03
-130 130.00
Jul-07
-1,000.00 -1,000.00
Jul-08
6,800.00 6,800.00
Jul-09
-4,400.00 4,400.00
Jul-10
-100.00 100.00
Jul-11
-4,802.00 -98.00 -4,900.00
Jul-13
-900.00 -900.00
600.00 -600.00
Jul-14
-85.00 85.00
Jul-17
-920.00 920.00
Jul-18
Jul-19
5,841.00 -5,900.00 -59.00
Jul-20
120.00 -120.00
Jul-21
Jul-23
7,800.00 7,800.00
-5,600.00 5,600.00
Jul-24
Jul-27
-580.00 -580.00
Jul-28
7,003.40 -7,220.00 -216.60
Totals: 14,216.40 0.00 592.00 0.00 15,000.00 3,451.00 14,600.00 -1,480.00 -275.60 9,400.00 185.00
No entry
No entry
No entry
Assets
Liabilities
Equity
Owner's
Capital
Retained earnings
Profit
Revenue
Expenses
No entry
No entry
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version