Accounting homework assignment has to be done on excel or word on or the other not both.

CASE #1:  Sophia Wise Computer Sales is a merchandiser and purchases its products directly from manufacturers.  In turn, it sells those products to its various customers.  One of its customers is Hillary Zabkar Electronics. The following transactions took place between Sophia Wise (seller) and its customer, Hillary Zabkar Electronics during the month of December:  

Dec 1	Sold merchandise to Hillary Zabkar on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500
Dec 3 Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Purchased merchandise from a manufacturer for cash, $720.
Dec 4	Purchased merchandise from a manufacturer on credit for $2,600, terms 1/20, n/30.
Dec 5	Issued a credit memorandum for $300 to its customer Hillary Zabkar Electronics who returned merchandise purchased Nov 29th. The returned items had a cost of $210
Dec 11	Received payment for merchandise sold Dec 1
Dec 15	Received a credit memorandum from a manufacturer for the return of faulty merchandise purchased on Dec 4 for $600.
Dec 18	Paid freight charges of $200 for merchandise ordered last month (FOB shipping point)
Dec 23	Paid for the merchandise purchased Dec 4 less the portion that was returned
Dec 24	Sold merchandise to Hillary Zabkar on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900
Dec 31	Received payment for merchandise sold on Dec 24

  

Problem #1

 

Assuming a perpetual inventory system, prepare the required journal entries that Sophia Wise Computer Sales must make to record these transactions:

   

Problem #2

 

Assuming a periodic inventory system, prepare the required journal entries that Sophia Wise Computer Sales must make to record these transactions:

   

Problem #3

 

Assuming a perpetual inventory system, prepare the required journal entries that Hillary Zabkar Electronics must make to record these transactions:

   

Problem #4

 

Assuming a periodic inventory system, prepare the required journal entries that Hillary Zabkar Electronics must make to record these transactions:

  

CASE #2::

 

Sarah Perreault Corp. sold 6,400 units of its product at $45 per unit in year 2013 and incurred operating expenses of $6 per unit in selling them.  It began the year with 600 units in inventory and the following transactions took place during the fiscal year:

     DATEACTIVITYUNITSPRICEJan 1Beginning inventory600$18 per unitFeb 20Purchase1,500$19 per unitMay 16Purchase700$20 per unitOct 3Purchase400$21 per unitDec 11Purchase3,300$22 per unitFeb 22Sale750$45 per unitMay 15Sale890$45 per unitSep 11Sale775$45 per unitDec 28Sale3,985$45 per unit         Problem #1 

Prepare comparative income statements similar to the ones found in your text at Exhibit 6.8 for the three inventory cost flow methods of FIFO, LIFO and weighted average.  The company uses a perpetual inventory system and its income tax rate is 30%.

 

In calculating cost of sales, be sure to demonstrate the flow of inventory during the year and prove your ending inventory amount by using the inventory cost formula (BI + Purchases =  GA – EI = CGS).

 Problem #2 

Discuss in 500 words or less how the financial results from using the three alternative methods would change if Sarah Perreault had been experiencing declining costs in its purchases of inventory?

 Problem #3 

What advantages and disadvantages are offered by using LIFO and FIFO?  Assume the continuing trend of increasing costs.

CASE #1:
Sophia Wise Computer

Sale

s is a merchandiser and purchases its products directly from manufacturers. In turn, it sells those products to its various customers. One of its customers is Hillary Zabkar Electronics. The following transactions took place between Sophia Wise (seller) and its customer, Hillary Zabkar Electronics during the month of December:

 

Dec 1	Sold merchandise to Hillary Zabkar on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500
Dec 3	Purchase d merchandise from a manufacturer for cash, $720.
Dec 4	Purchased merchandise from a manufacturer on credit for $2, 600 , terms 1/20, n/30.
Dec 5	Issued a credit memorandum for $300 to its customer Hillary Zabkar Electronics who returned merchandise purchased Nov 29th. The returned items had a cost of $210
	Dec 11	Received payment for merchandise sold Dec 1
Dec 15	Received a credit memorandum from a manufacturer for the return of faulty merchandise purchased on Dec 4 for $600.
Dec 18	Paid freight charges of $200 for merchandise ordered last month (FOB shipping point)
Dec 23	Paid for the merchandise purchased Dec 4 less the portion that was returned
Dec 24	Sold merchandise to Hillary Zabkar on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900
Dec 31	Received payment for merchandise sold on Dec 24

 

Problem #1

Assuming a perpetual inventory system, prepare the required journal entries that Sophia Wise Computer Sales must make to record these transactions:

Problem #2

Assuming a periodic inventory system, prepare the required journal entries that Sophia Wise Computer Sales must make to record these transactions:

 

Problem #3

Assuming a perpetual inventory system, prepare the required journal entries that Hillary Zabkar Electronics must make to record these transactions:

Problem #4

Assuming a periodic inventory system, prepare the required journal entries that Hillary Zabkar Electronics must make to record these transactions:

CASE #2:

:

Sarah Perreault Corp. sold 6,

400

units of its product at

$45 per unit

in year 2013 and incurred operating expenses of $6 per unit in selling them. It began the year with 600 units in inventory and the following transactions took place during the fiscal year:

Purchase

Purchase

Dec 11

Purchase

Sale

$45 per unit

Sale

$45 per unit

Sale

$45 per unit

DATE	ACTIVITY	UNITS	PRICE
Jan 1	Beginning inventory	600	$18 per unit
Feb 20				Purchase	1,500	$19 per unit
May 16	700	$20 per unit
Oct 3	400	$21 per unit
3,300	$22 per unit
Feb 22				Sale	750				$45 per unit
May 15	890
Sep 11	775
Dec 28	3,985

Problem #1

Prepare comparative income statements similar to the ones found in your text at Exhibit 6.8 for the three inventory cost flow methods of FIFO, LIFO and weighted average. The company uses a perpetual inventory system and its income tax rate is 30%.

In calculating cost of sales, be sure to demonstrate the flow of inventory during the year and prove your ending inventory amount by using the inventory cost formula (BI + Purchases = GA – EI = CGS).

Problem #2

Discuss in 500 words or less how the financial results from using the three alternative methods would change if Sarah Perreault had been experiencing declining costs in its purchases of inventory?

Problem #3

What advantages and disadvantages are offered by using LIFO and FIFO? Assume the continuing trend of increasing costs.