Record each transaction in the horizontal statements model

Assignment Help Accounting Basics

Reference no: EM132679965

Custom Auto Parts started this year with the following balances:

Cash: $60,000

Merchandise Inventory: $8,000

Land: $12,000

Accounts Payable: $0

Common Stock: $50,000

Retained Earnings: $30,000

During the year they had the following transactions:

Purchase $60,000 of merchandise inventory on account, terms 2/10,n/30.
The goods delivered in Event 1 were delivered FOB shipping point. Freight costs of $1,500 were paid in cash by the responsible party
Returned $3,000 of goods purchased in Event 1
Paid the balance due on the goods purchased in Event 1 and recorded the cash discount.
Recognized $59,000 of cash revenue from the sale of merchandise and recognized $45,000 of cost of goods sold from such sale.
The goods sold in Event 5 were delivered to the customers FOB destination. Freight costs of $1,400 were paid in cash by the responsible party.
Paid $9,000 in cash for selling and administrative expenses.
Sold the land for $14,500 in cash.

Problem 1: Using Excel, assuming a perpetual inventory system, record each transaction in the horizontal statements model.

Problem 2: After completing the recording of the transactions, prepare a multistep income statement. Include common size percentages on the income statement.

Reference no: EM132679965

Questions Cloud

Define relationship between forms of expression : In Project 2, you will use the insights gained from completing Project 1 to answer a series of short-answer responses about human expression.

Determine the correct amount of net income for June : Determine the correct amount of net income for June and the total assets, liabilities, and stockholders' equity at June 30

Intelligence community use of analytical methods : We look at the analyst-policymaker relationship. How can the intelligence community use of the analytical methods discussed in this course improve

Journalize the six adjusting entries required at March : Depreciation of equipment during year, $1,500. Journalize the six adjusting entries required at March 31, based on the data presented

Record each transaction in the horizontal statements model : After completing the recording of the transactions, prepare a multistep income statement. Include common size percentages on the income statement.

What participant behaviors would you prohibit : Use the Capella Library and the Internet to research theories of social psychology and strategies for minimizing social influence in political debates.

Intelligence fusion centers for homeland security : Describe some pros and cons related to how State and Local Law Enforcement and security agencies utilize intelligence fusion centers for homeland security

Identify the hard and soft components of the income : Free cash flow of $234 million was calculated from the cash flow statement. Identify the "hard" and "soft" components of the income, and explain why.

Find what is the firm basic eps : What is the firm's basic EPS? $250,000 worth of notes that are convertible to 100,000 common stock shares. 500,000 common stock shares outstanding.

User Account

All Pages