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# ACCT 504 Week 3 HomeWork

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S6-2 (Learning Objective 1: Show how to account for inventory transactions) Bridget Krumb, Inc., purchased inventory costing \$125,000 and sold 80% of the goods for \$190,000. All purchases and sales were on account. Krumb later collected 25% of the accounts receivable. 1. Journalize these transactions for Krumb, which uses the perpetual inventory system. S6-3 (Learning Objective 2: Apply the average, FIFO, and LIFO methods) Championship Sporting Goods started March with an inventory of 9 sets of golf clubs that cost a total of \$1,350. During March, Charmpionship purchased 27 sets of clubs for \$4,320. At the end of the month, had 8 sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these three accounting methods: S6-9 S11-8 (Learning Objective 3: Account for a corporation’s income tax) Apex Marine, Inc., had income before income tax of \$117,000 and taxable income of \$91,000 for 2012, the company’s first year of operations. The income tax rate is 30%.

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S6-2 (Learning Objective 1: Show how to account for inventory transactions) Bridget Krumb, Inc., purchased inventory costing \$125,000 and sold 80% of the goods for \$190,000. All purchases and sales were on account. Krumb later collected 25% of the accounts receivable. 1. Journalize these transactions for Krumb, which uses the perpetual inventory system. S6-3 (Learning Objective 2: Apply the average, FIFO, and LIFO methods) Championship Sporting Goods started March with an inventory of 9 sets of golf clubs that cost a total of \$1,350. During March, Charmpionship purchased 27 sets of clubs for \$4,320. At the end of the month, had 8 sets of golf clubs on hand. The store manager must select an inventory costing method, and he asks you to tell him both cost of goods sold and ending inventory under these three accounting methods: S6-9 S11-8 (Learning Objective 3: Account for a corporation’s income tax) Apex Marine, Inc., had income before income tax of \$117,000 and taxable income of \$91,000 for 2012, the company’s first year of operations. The income tax rate is 30%.

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