Hercula Cycles started January with 12 bicycles that cost $42 each. On January 16, Hercula purchased 40 bicycles at $68 each. On January 31, Hercula sold 23 bicycles for $90 each. Requirements 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method. 2. Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. Requirement 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method. Start by entering the beginning inventory balances. Enter the transactions chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Abbreviation used: QTY = Quantity: Tot. = Total) Hercula Cycles Date Jan. 1 Purchases QTY Unit Cost Tot. Cost Cost of Goods Sold QTY Unit Cost Tot. Cost Inventory on Hand QTY Unit Cost Tot. Cost
Hercula Cycles started January with 12 bicycles that cost $42 each. On January 16, Hercula purchased 40 bicycles at $68 each. On January 31, Hercula sold 23 bicycles for $90 each. Requirements 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method. 2. Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account. Requirement 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method. Start by entering the beginning inventory balances. Enter the transactions chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of inventory purchased, sold, and on hand at the end of the period. (Abbreviation used: QTY = Quantity: Tot. = Total) Hercula Cycles Date Jan. 1 Purchases QTY Unit Cost Tot. Cost Cost of Goods Sold QTY Unit Cost Tot. Cost Inventory on Hand QTY Unit Cost Tot. Cost
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...
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![Hercula Cycles started January with 12 bicycles that cost $42 each. On January 16, Hercula purchased 40 bicycles at $68 each. On January 31, Hercula sold 23 bicycles for $90 each.
Requirements
1.
2.
Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method.
Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account.
Date
Jan. 1
Requirement 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of
inventory purchased, sold, and on hand at the end of the period. (Abbreviation used: QTY = Quantity; Tot. = Total)
Hercula Cycles
Purchases
QTY Unit Cost Tot. Cost
Cost of Goods Sold
QTY Unit Cost Tot. Cost
C
Inventory on Hand
QTY Unit Cost Tot. Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1600deb4-6c6c-458d-9584-f1d0f996d4eb%2F4dc12a4a-aa57-45f3-8a8c-4cd6088578dd%2F16rb1f2_processed.png&w=3840&q=75)
Transcribed Image Text:Hercula Cycles started January with 12 bicycles that cost $42 each. On January 16, Hercula purchased 40 bicycles at $68 each. On January 31, Hercula sold 23 bicycles for $90 each.
Requirements
1.
2.
Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method.
Journalize the January 16 purchase of merchandise inventory on account and the January 31 sale of merchandise inventory on account.
Date
Jan. 1
Requirement 1. Prepare Hercula Cycle's perpetual inventory record assuming the company uses the weighted-average inventory costing method.
Start by entering the beginning inventory balances. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of
inventory purchased, sold, and on hand at the end of the period. (Abbreviation used: QTY = Quantity; Tot. = Total)
Hercula Cycles
Purchases
QTY Unit Cost Tot. Cost
Cost of Goods Sold
QTY Unit Cost Tot. Cost
C
Inventory on Hand
QTY Unit Cost Tot. Cost
![Some of J and B Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $14,000 below the business's cost of the goods, which was $95,000. Before any adjustments at the end of the
period, the company's Cost of Goods Sold account has a balance of $400,000.
Read the requirements.
Requirement 1. Journalize any required entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For situations that do not require an entry, make sure to select "No Entry Required" in the first cell in the "Accounts" column and
leave all other cells blank.)
The required journal entry would be:
Date
Dec. 31
Accounts and Explanation
Debit
C
Credit
Requirements
1. Journalize any required entries.
2. At what amount should the company report merchandise inventory on the
balance sheet?
3. At what amount should the company report cost of goods sold on the income
statement?
4. Which accounting principle or concept is most relevant to this situation?
Print
Done
X](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1600deb4-6c6c-458d-9584-f1d0f996d4eb%2F4dc12a4a-aa57-45f3-8a8c-4cd6088578dd%2Fven2slw_processed.png&w=3840&q=75)
Transcribed Image Text:Some of J and B Electronics' merchandise is gathering dust. It is now December 31, 2024, and the current replacement cost of the ending merchandise inventory is $14,000 below the business's cost of the goods, which was $95,000. Before any adjustments at the end of the
period, the company's Cost of Goods Sold account has a balance of $400,000.
Read the requirements.
Requirement 1. Journalize any required entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. For situations that do not require an entry, make sure to select "No Entry Required" in the first cell in the "Accounts" column and
leave all other cells blank.)
The required journal entry would be:
Date
Dec. 31
Accounts and Explanation
Debit
C
Credit
Requirements
1. Journalize any required entries.
2. At what amount should the company report merchandise inventory on the
balance sheet?
3. At what amount should the company report cost of goods sold on the income
statement?
4. Which accounting principle or concept is most relevant to this situation?
Print
Done
X
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