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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
(a) Prepare an income statement using the format presented on
page 245. Assume a 25% tax rate.
(b) 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
3-62Copyright © 2011 John Wiley & Sons, Inc. Kimmel,
Financial Accounting, 6/e,
Solution
s Manual (For Instructor Use Only)
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
Week 3 Homework TemplateInstructions  Only enter data in th.docx

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Week 3 Homework TemplateInstructions Only enter data in th.docx

  • 1. 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
  • 5. Exercise 5-6 is on the next page Exercise 5-6 (a) Prepare an income statement using the format presented on page 245. Assume a 25% tax rate. (b) 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
  • 6. 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.
  • 7. 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
  • 8. 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
  • 9. Problem 6-2B (a) Determine the Cost of Goods Available for Sale Date Explanation Units Unit Cost Total Cost Total
  • 10. (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)
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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 3-62Copyright © 2011 John Wiley & Sons, Inc. Kimmel, Financial Accounting, 6/e, Solution s Manual (For Instructor Use Only)
  • 20. 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).
  • 21. 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