From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system
)
Net Sales $198,000
Purchases 92,000
Purchase Returns and Allowances 1,800
Purchase Discounts 1,400
Freight In 1,350
Beginning Merchandise Inventory 62,000
Ending Merchandise Inventory 36,000
A) $116,150
B) $62,800
C) $114,800
D) $54,150
A .Calculation of Cost of Goods Sold:
Beginning Merchandise Inventory $62,000
Purchases $92,000
Less: Purchase Returns and Allowances 1,800
Less: Purchase Discounts 1,400
Net Purchases $88,800
Plus: Freight In 1,350
Net Cost of Purchases 90,150
Cost of Goods Available for Sale $152,150
Less: Ending Inventory 36,000
Cost of Goods Sold $116,150
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Dan and Ellie share partnership profits and losses at 70% and 30%, respectively. The partners agree to admit Fran into the partnership for a 50% interest in capital and earnings
Capital accounts immediately before the admission of Fran are: Dan (70%) $ 800,000 Ellie (30%) 400,000 Total $ 1,200,000 Required: 1. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $800,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money directly to Dan and to Ellie for 50% of each of their respective capital interests. The partnership records goodwill. 2. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,000,000 for the ownership interest. Fran paid the money to the partnership for a 50% interest in capital and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly valued. The partnership records goodwill. 3. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,400,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.