GROUP 7

Individual
Score /10
1. VÕ NGỌC THỦY TIÊN- 31191024493 2.5
2. PHAN THỊ MỸ LINH-31171024218 2.5
3. LÊ XUÂN NAM- 31161024562 2.5
4. LÊ NGUYÊN KHOA- 31191024403 2.5
E5-10B E5-10B
(a) Multiple-step income statement
(a) Multiple-step Income statement
Krueger Company
Income statement
For the year ended December 31,2017 For the year ended December 31,2017
Net sale Net sale $1650000
Cost of good sold Cost of good sold 922,000
Gross profit Gross profit 728,000
Operating expense Operating expense 647,000
Income from operation Income from operation 81,000
Other revenues and gains Other revenues and gains
Interest revenue Interest revenue 20,000
Other expenses and losses Other expenses and losses
Interest expense Interest expense 49,000
Loss on disposal of equipment Loss on disposal of equipment 7,000
Net income Net income $45000
(b) Single step Income statement

E5-2B

Revenue (a) Journal entry

Net sales
Interest revenue April 5 Purchases $30,000
Total revenue Account payable 30,000
Expense April 6 Freight-In 800
Cost of goods sold Cash 800
Operating expenses April 7 Equipment 37,000
Interest expense Account payable 37,000
Loss on disposal of equipment April 8 Account Payable 3,000
Total expense Purchase return and allowances 3,000
Net income April 15 Account payable 27,000
Purchase discount 540
E5-20B Cash 26,640
(b)
May 4 Account payable 27,000
Cash 27,000
(b) Single-step Income statement

Krueger Company
Income statement
For the year ended December 31,2017
Revenue
Net sales $1,650,000
Interest revenue 20,000
Total revenue ###
Expense
Cost of goods sold 922,000
Operating expenses 647,000
Interest expense 49,000
Loss on disposal of equipment 7,000
Total expense ###
Net income $45,000
E5-11B
1
Dr Sales Returns and Allowances 205
Cr Sales Revenue 205

2
Dr Cash 300
Dr Supplies 300
Cr Merchandise Inventory 300
Cr Accounts Payable 300

3
Dr Sales Returns and Allowances 130
CrSales Revenue 130

4
Dr Inventory 30
Dr Cash 300
Cr Freight-Out 330

E5-17B

Beginning Inventory $35,000

Purchases 300,000
Less: Purchase Returns & Allowances 4,000
Net Purchases 296,000
Add: Freight In 8,500
Cost Of Goods Purchased 304,500
Cost Of Goods Available For Sale 339,500
Less: Ending Inventory 45,000
Cost Of Goods Sold 294,500
E6-1B
Ending inventory - physical count $255,000
1. No effect
2. No effect
3. Add to inventory 47,000
4. Add to inventory 42,000
5. Less inventory -41,000
Correct Inventory 303,000

E6-4B
a)
FIFO
Beginning Inventory (20 @ $120) 2,400
Purchase
July 12 (35 @ $125) 4,375
July 19 (15 @ $128) 1,920
July 26 (40 @ $130) 5,200 11,495
Cost of goods available for sale 13,895
Less: Ending inventory (22 @ $130) 2,860
Cost of goods sold 11,035

Proof
Date Units Unit Cost Total Cost
1-Jul 20 $120 2,400
12-Jul 35 125 4,375
19-Jul 15 128 1,920
26-Jul 18 130 2,340
88 11,035

LIFO
Beginning Inventory (20 @ $120) 2,400
Purchase
July 12 (35 @ $125) 4,375
July 19 (15 @ $128) 1,920
July 26 (40 @ $130) 5,200 11,495
Cost of goods available for sale 13,895
Less: Ending inventory (20 @ $120) + (2 @ $125) 2,650
Cost of goods sold 11,245

Proof
Date Units Unit Cost Total Cost
12-Jul 33 $125 4,125
19-Jul 15 128 1,920
26-Jul 40 130 5,200
88 11,245

b)
Ending Inventory Cost of goods sold Sum of EI and COGS
FIFO 2,860 11,035 13,895
LILO 2,650 11,245 13,895
Under both methods, the sum of the ending inventory and cost of goods sold equal the same amount of $13,895, which is the cost of goods available for sale
ds available for sale
E6-9B

Item Units Unit Cost Market Lower-of-cost or market

Cameras
Minolta 5 180 200 900
Canon 6 160 155 930
Lightmeters
Vivitar 12 110 120 1320
Kodak 14 130 115 1610

E6-18B
a) November December
Cost of goods purchased 600000 700000
Inventory, beginning of the mo 140000 100000
Inventory, end of the month 120000 56000
Sales Revenue 1000000 1200000
Cost of goods sold 620000 744000
Gross profit 380000 (0.38) 456000
Gross profit rate 38000 : 1000000 x 100% = 38%

b) December
Gross profit 0.38 x 1200000 = 456000
Cost of goods sold 1200000 - 456000 = 744000
Ending inventory 100000 + 700000 - 744000 = 56000
Estimated cost of inventory lost in fire = 56000