Wildhorse Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Wildhorses’ ledger showed Cash of $8,100 and Common Stock of $8,100.

Journalize the transactions using a perpetual inventory system. Also, Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances. Also, Prepare an income statement through gross profit for the month of May 2022. Lastly, Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,554.

Ivanhoe Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Ivanhoes’ ledger showed Cash of $8,500 and Common Stock of $8,500.

Journalize the transactions using a perpetual inventory system.

Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances.

Prepare an income statement through gross profit for the month of May 2022.

Calculate the profit margin and the gross profit rate. (Assume operating expenses were $1,380.)

Splish Brothers Inc. completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Splish Brothers Inc. showed Cash of $5,500 and Common Stock of $5,500.

Splish Brothers Inc. ’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

A) Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order presented in the problem.)

B) Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.)

C) Prepare an income statement through gross profit for the month of May 2019.

Problem 5-2A

Sheffield Corp. completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Sheffield Corp. showed Cash of $5,000 and Common Stock of $5,000.

Sheffield Corp. ’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

a. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order presented in the problem.)

b. Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.)

c. Prepare an income statement through gross profit for the month of May 2019.

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $56 per unit.

Required:

1. Assume the company uses variable costing:

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2.

2. Assume the company uses absorption costing:

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2.

3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.

2. Nine experts rated two brands of Colombian coffee in a taste-testing experiment. A rating on a 7-point scale (1=extremely unpleasing, 7 = extremely pleasing) is given for each of four characteristics: taste, aroma, richness, and acidity. The following data contain the ratings accumulated over all four characteristics:

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1. a) At the 0.05 level of significance, is there evidence of a difference in the mean ratings between the two brands?

2. b) What assumption is necessary about the population distribution in order to perform this test?

3. c) Construct and interpret a 95% confidence interval estimate of the difference in the mean ratings between the two brands.

Based on the status quo population parameter value (Opportunity Amount USD 91637.26) and information (or lack thereof) regarding the population standard deviation, you will conduct a one tailed hypothesis test based on a level of significance of alpha=0.05. You will choose between a lower and upper tailed test based on your calculated sample mean: -If your sample mean is lower than the status quo population mean, you will be testing that it has decreased from the norm. -If your sample mean is higher than the status quo population mean, you will be testing that it has increased from the norm. Be sure to state the Null and Alternative Hypotheses, the Test Statistic, the Critical Value, and the Test Conclusion. Explain in words how the conclusion of the test could impact the business.

Rowland Company is a small editorial services company owned and operated by Marlene Rowland. On August 31, 2018, the end of the current year, Rowland Company’s accounting clerk prepared the following unadjusted trial balance:

Rowland Company

UNADJUSTED TRIAL BALANCE

August 31, 2018

The data needed to determine year-end adjustments are as follows:

CHART OF ACCOUNTSRowland CompanyGeneral Ledger

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. Refer to the Chart of Accounts for exact wording of account titles.

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PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 176/176

Points:

35 / 35

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Check My Work

Before you begin, identify which adjusting entry goes with which additional account. As you go through each of these, consider the other sides of the adjusting entry transaction and identify related accounts. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenues or expenses) and one balance sheet account (assets or liabilities). In the case of the insurance transaction, you will have to calculate the amount of insurance expired. In the case of supplies, you will need to calculate the amount of supplies used (expense). In the case of rent, you will need to calculate the amount of rent earned (revenue).

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance.

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Rowland Company

ADJUSTED TRIAL BALANCE

Score: 56/107

August 31, 2018

I need assistance with the adjusted balance

Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records for the year ended December 31, 2017.

Additional information is as follows:

Work-in-process inventory costing $30,000 was sent to an outside processor for hand-tooling on December 30, 2017, and was therefore not included in physical inventory.

Goods received from Smith, Inc., a vendor, on December 27, 2017, were included in the physical count; however, the invoice from Smith ($43,000) was not included in accounts payable at December 31, 2017, because the accounts payable department never received its copy of the receiving report.

Goods received from another vendor just before the plant closed on December 31, 2017, were reported on a receiving report dated January 2, 2018. The goods, invoiced to Gomez at $83,000, were not included in the physical count, but the invoice was included in the December 31, 2017, accounts payable balance.

Included in the physical count were boots billed to a customer f.o.b. shipping point (title transfers when goods are shipped) on December 31, 2017. These boots had a cost of $25,000 and were recorded as sales of $35,000. The shipment was on Gomez’s loading dock waiting to be picked up by the trucking company.

Boots shipped to a customer f.o.b. destination (title transfers when goods are received) on December 28, 2017, were in transit at December 31, 2017, and had a cost of $40,000. Gomez issued a sales invoice for $58,000 on January 3, 2018, upon notification of receipt by the customer.

Boots returned by customers and held on December 31, 2017, in the returned goods area pending inspection were not included in the physical count. On January 5, 2018, after inspection, the boots were returned to inventory and credit memos were issued to the customers. The boots, costing $27,000, were originally invoiced for $39,000.

Required:

Using the following format, prepare a schedule of adjustments as of December 31, 2017, to the amounts Gomez initially reported in its accounting records. Show separately the effect, if any, of each of the six transactions on the December 31, 2017, amounts. (Amounts to be deducted must be entered with a minus sign)