Which is the right answer? apany purchased $33,000 of merchandise from the Poole Wholesale Comparco its location. The company uses the perpetual inventory system. Which of thprd these transactions for The Wilson Company? (Consider the effects of bothhoiceTotal debits to the inventory account would be $35,600.Total debits to the inventory account would be $33,00.Transportation-in would be debited for $2.600.Total debits to the inventory account wwould be $2,600,< Prev7 of 26Next >%232$&46.78ERT3. The Wilson Company purchased $33,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,600 for freight costs to have thegoods shipped to its location. The company uses the perpetual inventory system. Which of the following summarizes the effects of the journal entriesrequired to record these transactions for The Wilson Company? (Consider the effects of both business events.)Multiple ChoiceTotal debits to the inventory account would be $35,60o.Total debits to the inventory account would be $33,000.

Total Inventory Value = (Purchase Value + Freight)

The Wilson Company purchased $33,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,600 for freight costs to have the goods shipped to its location. The company uses the perpetual inventory system. Which of the following summarizes the effects of the journal entries required to record these transactions for The Wilson Company? (Consider the effects of both business events.) Multiple Choice Total debits to the inventory account would be $35,600. Total debits to the inventory account would be $33,000.

The Wilson Company purchased $33,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,600 for freight costs to have the goods shipped to its location. The company uses the perpetual inventory system. Which of the following summarizes the effects of the journal entries required to record these transactions for The Wilson Company? (Consider the effects of both business events.) Multiple Choice Total debits to the inventory account would be $35,600. Total debits to the inventory account would be $33,000.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PB: Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as...

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Use the following information to compute cost of goods sold under the FIFO and LIFO inventory methods. The firm sold 200 units.
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Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
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