BUS 591 Week 3 Assignment

Week 3 – Assignment 

Week Three Homework Problems

Complete the following Workbook Template Week ThreePreview the document. Problems E5-2 and E5-6 are from Chapter 5 and P5-5B from the Textbook Student Companion Site. Problems 6-2B and 6-3B from Chapter 6 are located on the Textbook Student Companion Site. Submit your work to your instructor by the posted due date. Show all your work in order to earn full credit.

Carefully review the Grading Rubric (Links to an external site.)Links to an external site. for the criteria that will be used to evaluate your assignment.

 

Week 3 Homework Template

Instructions: Only enter data in the yellow boxes. The remaining areas are already completed for you.

Save the file as follows:  lastnamewk1.docx

Submit to the assignment box before the due date. (Late assignments will receive a late penalty).

Remember to show your calculations where necessary! (Use empty space under the tables to do so).

Exercise 5-2

(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).

 

Date

Account Titles and Explanation

Debit

Credit

 

Sept.   6

 

 

9

 

 

10

 

 

12

 

 

12

 

 

14

 

 

14

 

 

20

 

 

20

 

Exercise 5-6 is on the next page

 

Exercise 5-6

(a) Prepare an income statement using the format presented in Illustration 5-11.

(b) Prepare a comprehensive income statement.

(c) Calculate the profit margin and gross profit rate.

(a)

 

LIEU COMPANY

 

Income Statement

 

For the Month Ended January 31, 2017

 

Sales   Revenues

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

Amount (Total)

 

Net   Sales

 

Cost   of goods sold

 

Gross   profit

Amount

 

Operating   Expenses

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Total   operating expenses

Amount

 

Income   before income taxes

Amount

 

Income   tax expense

Amount

 

Net   Income

Amount

(b)

 

LIEU COMPANY

 

Comprehensive Income Statement

 

For the Month Ended January 31, 2017

 

 

Net   Income

Amount

 

Other   Comprehensive Income (net of tax)

Amount

 

Comprehensive   Income

Amount   (Total)

(c) Profit Margin

 

Enter text answer here.

 

Gross Profit Rate

 

Enter text answer here.

 

PROBLEM 5-5B

Prepare a correct detailed multiple-step income statement.

 

WRIGHT COMPANY

 

Income Statement

 

For the Month Ended December 31, 2014

 

Sales   Revenues

 

Account title

Amount

 

Account title

Amount

 

Account title

Amount

 

Net   Sales

 

Cost   of goods sold

 

Gross   profit

Amount

 

Operating   Expenses

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Account   title

Amount

 

Total   operating expenses

Amount

 

Income   from operations

Amount

 

Other   revenues and gains

 

Account   title

Amount

 

Other   expenses and losses

 

Account   title

Amount

Amount (Total)

 

Income   before income taxes

 

Income   tax expense

 

Net   Income

Problem 6-2B

(a) Determine the Cost of Goods Available for Sale

 

Date

Explanation

Units

Unit Cost

Total Cost

 

 

 

 

 

Total

 

(b) Determine the ending inventory and cost of goods sold under each of the assumed cost flow methods. Prove the accuracy of the cost of goods sold under FIFO and LIFO.

FIFO

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Date

Units

Unit Cost

Total Cost

Cost of goods   available for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

 

Proof   of Cost of Goods Sold (FIFO)

 

Date

Units

Unit Cost

Total Cost

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

LIFO

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Date

Units

Unit Cost

Total Cost

Cost of goods   available for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

 

Proof   of Cost of Goods Sold (LIFO)

 

Date

Units

Unit Cost

Total Cost

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

AVERAGE COST (Round to the nearest decimal, i.e., $1.01)

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Units

Unit Cost

Total Cost

Cost of goods   available for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

(c) Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

 

Enter your answer here

Problem 6-3B

(a) Determine the Cost of Goods Available for Sale

 

Date

Explanation

Units

Unit Cost

Total Cost

 

 

 

 

 

 

Total

 

(b) Determine the ending inventory and the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO and average-cost). Prove the accuracy of the cost of goods sold under each method.

FIFO

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Date

Units

Unit Cost

Total Cost

Cost of goods available   for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

 

Proof   of Cost of Goods Sold (FIFO)

 

Date

Units

Unit Cost

Total Cost

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

LIFO

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Date

Units

Unit Cost

Total Cost

Cost of goods   available for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

 

Proof   of Cost of Goods Sold (LIFO)

 

Date

Units

Unit Cost

Total Cost

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Amount

Amount

 

Total

Amount

Total

Amount

AVERAGE COST (Round to the nearest decimal, i.e., $1.01)

 

(1) Ending Inventory

(2) Cost of Goods Sold

 

Units

Unit Cost

Total Cost

Cost of goods   available for sale

Amount

 

Amount

Amount

Less: ending   inventory

Amount

 

Total

Amount

Total

Amount

Cost of Goods Sold

Amount

(c) Which cost flow method results in the lowest inventory amount for the balance sheet? The lowest cost of goods sold for the income statement?

 

Enter your answer here

 
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