(10-15 min.)
E 5-1Net sales
Cost of sales
Merchandise inventories
2. Gross profit:
|
(Millions of dollars) |
||
|
Fiscal Years |
||
|
2000 |
1999 |
|
|
Sales.............................................. |
$11,862 |
$11,170 |
|
Cost of sales.................................. |
(8,321) |
(8,191) |
|
Gross profit...............................… |
$ 3,541 |
$ 2,979 |
The gross profit is up. This is a good sign.
3.
Date:
To: Investors
From: Student Name
Subject: Trend of sales, gross profit, and net income for
Toys "
In fiscal year 2000, Toys "
Я" Us’s sales, gross profit, and net income were all better than in 1999. These trends lead to a favorable outlook for the company. However, the net loss during 1999 casts a bit of a cloud over the company’s outlook.(15-20 min.)
E 5-2|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
Sept. |
3 |
Inventory |
1,900 |
||
|
Accounts Payable |
1,900 |
||||
|
7 |
Accounts Payable |
300 |
|||
|
Inventory |
300 |
||||
|
9 |
Inventory |
30 |
|||
|
Cash |
30 |
||||
|
10 |
Accounts Receivable |
3,100 |
|||
|
Sales Revenue |
3,100 |
||||
|
10 |
Cost of Goods Sold |
1,700 |
|||
|
Inventory |
1,700 |
||||
|
12 |
Accounts Payable ($1,900 ! $300) |
1,600 |
|||
|
Inventory ($1,600 ´ .02) |
32 |
||||
|
Cash ($1,600 ! $32) |
1,568 |
||||
|
16 |
Sales Returns and Allowances |
800 |
|||
|
Accounts Receivable |
800 |
||||
|
23 |
Cash ($2,300 ! $46) |
2,254 |
|||
|
Sales Discounts ($2,300 ´ .02) |
46 |
||||
|
Accounts Receivable |
|||||
|
($3,100 ! $800) |
2,300 |
||||
(10-15 min.)
E 5-3Reqs. 1, 2, and 3
|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
May |
15 |
Inventory |
979.32 |
||
|
Accounts Payable |
979.32 |
||||
|
19 |
Accounts Payable |
500.20 |
|||
|
Inventory |
500.20 |
||||
|
22 |
Accounts Payable |
||||
|
($979.32 ! $500.20) |
479.12 |
||||
|
Inventory ($479.12 ´ .02) |
9.58 |
||||
|
Cash ($479.12 ! $9.58) |
469.54 |
||||
(10-15 min.)
E 5-4|
Journal |
||||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
||
|
April |
30 |
Inventory |
8,000 |
|||
|
Accounts Payable |
8,000 |
|||||
|
May |
4 |
Accounts Payable |
800 |
|||
|
Inventory |
800 |
|||||
|
14 |
Cash |
6,984 |
||||
|
Note Payable |
||||||
|
[($8,000 ! $800) ´ .97] |
6,984 |
|||||
|
14 |
Accounts Payable ($8,000 ! $800) |
7,200 |
||||
|
Inventory ($7,200 ´ .03) |
216 |
|||||
|
Cash ($7,200 ! $216) |
6,984 |
|||||
|
June |
14 |
Note Payable |
6,984 |
|||
|
Interest Expense ($6,984 ´ .01) |
70 |
|||||
|
Cash |
7,054 |
|||||
(10-15 min.)
E 5-5|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
April |
30 |
Accounts Receivable |
8,000 |
||
|
Sales Revenue |
8,000 |
||||
|
30 |
Cost of Goods Sold ($8,000 ´ .60) |
4,800 |
|||
|
Inventory |
4,800 |
||||
|
May |
4 |
Sales Returns and Allowances |
800 |
||
|
Accounts Receivable |
800 |
||||
|
4 |
Inventory |
480 |
|||
|
Cost of Goods Sold ($800 ´ .60) |
480 |
||||
|
14 |
Cash ($7,200 ! $216) |
6,984 |
|||
|
Sales Discounts ($7,200 ´ .03) |
216 |
||||
|
Accounts Receivable ($8,000 ! $800) |
7,200 |
||||
(15-20 min.)
E 5-6Req. 1
|
CLOSING ENTRIES |
||||
|
2000 |
Millions |
|||
|
Jan. |
31 |
Sales Revenue............................................. |
38,434 |
|
|
Interest Revenue.......................................... |
37 |
|||
|
Income Summary.................................... |
38,471 |
|||
|
31 |
Income Summary........................................ |
36,151 |
||
|
Cost of Goods Sold................................. |
27,023 |
|||
|
Other Expense......................................... |
1,597 |
|||
|
Selling Expense...................................... |
6,832 |
|||
|
Interest Expense...................................... |
28 |
|||
|
General and Administrative Expense..... |
671 |
|||
|
31 |
Income Summary ($38,471 ! $36,151)...... |
2,320 |
||
|
Owner Capital......................................... |
2,320 |
|||
|
31 |
Owner Capital............................................. |
255 |
||
|
Owner Withdrawals................................ |
255 |
|||
Req. 2 Amounts in millions
|
Income Summary |
Owner Capital |
|||||||
|
Clo. |
36,151 |
Clo. |
38,471 |
Bal. |
8,740 |
|||
|
Clo. |
2,320 |
Clo. |
255 |
Clo. |
2,320 |
|||
|
Bal. |
10,805 |
|||||||
(10-15 min.)
E 5-7|
Journal |
|||||
|
DATE |
ACCOUNTS AND EXPLANATIONS |
POST. REF. |
DEBIT |
CREDIT |
|
|
CLOSING ENTRIES |
|||||
|
20X2 |
|||||
|
Mar. |
31 |
Sales Revenue |
|||
|
($233,000 + $6,100) |
239,100 |
||||
|
Income Summary |
239,100 |
||||
|
31 |
Income Summary |
164,240 |
|||
|
Sales Discounts |
2,000 |
||||
|
Cost of Goods Sold |
|||||
|
($111,600 + $4,290) |
115,890 |
||||
|
Selling Expense |
|||||
|
($21,050 + $5,200 + $1,200) |
27,450 |
||||
|
General Expense |
|||||
|
($10,500 + $3,400 + $2,250) |
16,150 |
||||
|
Interest Expense |
2,750 |
||||
|
31 |
Income Summary |
||||
|
($239,100 ! $164,240) |
74,860 |
||||
|
Jack Potter, Capital |
74,860 |
||||
|
31 |
Jack Potter, Capital |
45,000 |
|||
|
Jack Potter, Withdrawals |
45,000 |
||||
Net income was $74,860.