Acct 1a financial accounting ch 4-6

Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage. (Omit the “$” sign in your response.)

 

2. 

Income statement information for adidas Group, a German footwear, apparel, and accessories manufacturer, for the year ended December 31, 2009, follows. The company applies IFRS, as adopted by the European Union, and reports its results in millions of Euros.

     

      

 

 

  Net income

245  

  Financial income

 

19  

  Financial expenses

 

169  

  Operating profit

 

508  

  Cost of sales

 

5,669  

  Income taxes

 

113  

  Income before taxes

 

358  

  Gross profit

 

4,712  

  Royalty and commission income

 

86  

  Other operating income

 

100  

  Other operating expenses

 

4,390  

  Net sales

 

10,381  

     

1.

Prepare the multiple-step income statement for the company for the year ended December 31, 2009.(Enter your answers in millions. Input all amounts as positive values. Omit the “€” sign in your response.)

Prepare the single-step income statement for the company for the year ended December 31, 2009.(Enter your answers in millions. Input all amounts as positive values. Omit the “€” sign in your response.)

 

. 

Apr. 2   

Purchased merchandise from Blue Company under the following terms: $3,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.

3   

Paid $200 for shipping charges on the April 2 purchase.

4   

Returned to Blue Company unacceptable merchandise that had an invoice price of $600.

17   

Sent a check to Blue Company for the April 2 purchase, net of the discount and the returned merchandise.

18   

Purchased merchandise from Fox Corp. under the following terms: $7,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.

21   

After negotiations, received from Fox a $2,100 allowance on the April 18 purchase.

28   

Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.

       

Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system. (Omit the “$” sign in your response.)