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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 • Prepare an income statement using the format presented on page 245. Assume a 25% tax rate. • Calculate the profit margin ratio and gross profit rate. ZHOU COMPANY Income Statement For the Month Ended January 31, 2014 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) Profit Margin Ratio Enter text answer here. Gross Profit Rate Enter text answer here. PROBLEM 5-5B Prepare a correct detailed multiple-step income statement. Assume a tax rate of 25%. 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

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

 

  • Prepare an income statement using the format presented on page 245. Assume a 25% tax rate.
  • Calculate the profit margin ratio and gross profit rate.

 

ZHOU COMPANY
Income Statement
For the Month Ended January 31, 2014
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) Profit Margin Ratio

Enter text answer here.

 

 

Gross Profit Rate

Enter text answer here.

 

 

 

 

 

PROBLEM 5-5B

 

Prepare a correct detailed multiple-step income statement.  Assume a tax rate of 25%.

 

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