EX 65-6 Purchaso-related transactions Obj. 2 The debits and credits from four related transactions, (1) through (4), are presented in the fol. lowing T accounts. Assume that the freight terms were FOB shipping point and that the ereait terms were 1/10, n/30. cash ‘Accounts Payable a | 1900 [13,860 O e800) 11880 Inventory a 13,860 | 3) 7,980 a 150 4. Sam Describe each transaction. b. Determine the invoice amount of the merchandise that was returned in (3).EX5-10 Customer refund Obj. 2 Senger Company sold merchandise of $15,500, terms 2/10, n/30, to Burris Inc, on April 23, Burtis paid Senger for the merchandise on May 2. On May 12, Senger paid Burris $650 for costs incurred bby Burris to repair defective merchandise. (a) Joumalize the entry by Senger Company to record the customer refund to Burris Inc. (b) Assume that instead of paying Burris cash, Senger issued a credit memo to Burris to be used against Burris's outstanding account receivable balance. Journalize the entry by Senger Company to record the issuance of the credit memo.EX5-13 Soles-related transactions 0bj.2 ‘The debits and credits for five related transactions, (1) through (6), are presented in the following T accounts, Assume the credit terms were 2/10, n/30. ‘cash sal ® 10250 ~~ To 1760 Accounts Receivable Cost of Goods Sold a iWweyTe aro 7900 lo 10,290 Inventory @ 300 | @) 7900 Estimated Returns Inventory @ 900) (Customer Refunds Payable a 1A70 2. samme Describe each transaction, b. What was the invoice amount of the merchandise that was returned?PR5-4A_ Sales and purchase-related transactions for seller and buyer 06.2 using perpetual inventory system ‘The following selected transactions were completed during August between Summit Company and Beartooth Co. os ‘Aug. 1. Summit Company sold merchandise on account to Beartooth Co, $48,000, terms FOB destination, 215, ‘/eom. The cost of the goods old was $28,800 2. Summit Company pai freight of $1,150 for delivery of merchandise sold to Beartooth Co.on ‘August 1. ‘5. Summit Company sold merchanalse on account to Beartooth Co, $66,000, terms FOB shipping pot ‘Vom. The cost of the goods sold was $40,000. 9. Beartooth Co pal freight of $2,300 on August 5 purchase fom Summit Company. 15, Summit Company sold merchandise on account to Beartooth Co, $58,700, terms FOB shipping point, 1/45. ‘Surnmit patd freight of $1,675, which was added tothe Invoice, The cost ofthe goods Sold was $350, 16, Beartooth Co paid Summit Company for purchase of Auoust 1 ‘Aug.20. Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on ‘August 1. Beartooth Co kept the merchandise. 31. Beartooth Co, paie Summit Company on account fr purchase of August S 31. Summit Company issued Beartooth Co. credit memo for merchandise with an invoice amount of $4,000 ‘that was returned from the August 15 sal. The cost of the merchandise returned was $2,500. Instructions, Jourmalize the August transactions for (1) Summit Company and (2) Beartooth Co.CA= aden CTRA= 20% CL= 487500 LTL= dod PR5-5A Multiple-step income statement end balance sheet The following selected accounts and their current balances appear in Clairemont Co. for the fiscal year ended May 31, 20¥2: co $240,000 Accounts Recetvable 996000 Inventory 1690000 Estimated Returns Inventory 72500 Office Suppis 43500 pai Insurance 8000 ce Equipment #30000 Accumulated Depreciation — Office Equipment 530000 Store Equipment 3.600.000 ‘Accumulated Depredation— Store Equipment 1420000 Accounts Payable 326000 customer Refunds Poyable 40.000 Salaries Payable 41500 Note Payable CL= SO, LTL= 360, (inal payment due in6 years) “300,000, Common Stock 500,000 Instructions 1. Prepare a multiple-step income statement. Retained Earnings Dividends Sales Costof Goods Sold Sales Salaries Expense ‘Advertsing Expense Depreciation Expense— Store Equipment Miscellaneous Selling Expense Office Salaries Expense Rentxpense Depreciation Expense— Office Equipment Insurance Expense Office Supplies Expense Miscellaneous Administrative Exp, Interest Expense Obl. 4 the ledger of $ 2949.00 ono 11313000 "780000 ste c00 $0000 SAL Exe. ‘oo00 ooo | 1 ait oD 0000 4000 50,000 48000 Adm Ey. won) BY 14300 nooo» Dbhur EAP, 2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. 3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000. 4, am Briefly explain how multiple and single-step income statements diffe.MAD 5-2 Analyze Dollar Genoral Obj. 5 Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers ‘wide range of merchandise normally for $10 or less. The following data (in millions) were taken from recent financial statements of Dollar General: Year2 Your Total sales 321987 $20,368 Total assets: Beginning of year 11258 11209 Endoof year 1672 11258, a, Compute the asset turnover ratio for Year 2 and Year 1, Round to two decimal places. 'b, amumme Interpret the change in the asset turnover ratio from Year 1 to Year 2,