University Of Houston Operations And Supply Chain Management Assignment Help - the Ferrick Corporation

Question - You are engaged to audit the Ferrick Corporation for the year ended December 31, 2011.
Only merchandise shipped by the Ferrick Corporation to customers up to and including
December 30, 2011, has been eliminated from inventory. The inventory as determined by
physical inventory count has been recorded on the books by the company's controller. No
perpetual inventory records are maintained. All sales are made on an FOB'shipping point
basis. You are to assume that all purchase invoices have been correctly recorded.

The following lists of sales invoices are entered in the sales journal for the months of
December 2011 and January 2012, respectively.


Sales Invoice
Amount
Sales
Invoic
e Date
Cost of
Merchandise
Sold
Date
Sh ...Read More ippe
d
December 2011

a. $ 3,000
Dec.
21 $ 2,000
Dec.
31
b. 2,000
Dec.
31 800
Dec.
13
c. 1,000
Dec.
29 600
Dec.
30
d. 4,000
Dec.
31 2,400 Jan. 9
e. 10,000
Dec.
30 5,600
Dec.
29*
January 2012

f. $ 6,000
Dec.
31 $ 4,000
Dec.
30
g. 4,000 Jan. 2 2,300 Jan. 2
h. 8,000 Jan. 3 5,500
Dec.
31
*Shipped to consignee.


Required:
Prepare necessary adjusting entries for the following events. (Omit the "$" sign in your
response.)

Event General Journal Debit Credit
a. (Click to select) Accounts payable Common stock Cost of merchandise
sold Accounts receivable Retained earnings Sales Cash Inventory

(Click to select) Inventory Accounts receivable Retained earnings
Accounts payable Cash Common stock Cost of merchandise sold Sales
d. (Click to select) Inventory Common stock Retained earnings Sales
Accounts payable Cash Cost of merchandise sold Accounts receivable

(Click to select) Cash Inventory Accounts payable Sales Cost of
merchandise sold Accounts receivable Common stock Retained
earnings
e. (Click to select) Common stock Sales Cost of merchandise sold
Accounts receivable Accounts payable Inventory Cash Rent expense

(Click to select) Rent expense Common stock Inventory Cash Sales
Cost of merchandise sold Accounts payable Accounts receivable

(Click to select) Common stock Rent expense Cost of merchandise
sold Sales Accounts payable Cash Inventory Accounts receivable

(Click to select) Sales Cash Rent expense Inventory Common stock
Accounts payable Cost of merchandise sold Accounts receivable
f.
(Click to select) Cash Inventory Sales Cost of merchandise sold
Accounts payable Retained earnings Accounts receivable Common
stock

(Click to select) Accounts receivable Inventory Cash Sales Cost of
merchandise sold Accounts payable Retained earnings Common stock
h. (Click to select) Rent expense Inventory Cash Depreciation expense
Cost of merchandise sold Sales Common stock Accounts receivable

(Click to select) Inventory Cost of merchandise sold Rent expense
Depreciation expense Cash Sales Accounts receivable Common stock

(Click to select) Inventory Sales Depreciation expense Accounts
payable Cash Cost of merchandise sold Accounts receivable Prepaid
rent

(Click to select) Cost of merchandise sold Inventory Accounts receivable
Cash Sales Prepaid rent Accounts payable Depreciation expense ...Read Less

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