Chapter 5 Question 1 (Purchase Transaction) Arab company had the following transactions March 2 Purchased goods of JD 7,000 from

Yarmouk company, terms 10/10 n/60, FOB shipping point. March 5 March 5 March 8 Returned JD 2,000 of goods, because of inferior quality Paid the freight costs of JD 75 Paid the half of the amount due

March 28 Paid the rest of the amount due. Required : Journalize the transactions for Arab company

Question 2 (Sale transactions) Success company had the following transactions July 2 Sold goods costing JD 6,000 at JD 8,000 to ABC company, terms 5/10 n/30, FOB destination. July 5 July 5 July 8 ABC company returned JD 2,00 of goods, because of inferior quality. Paid the freight costs of JD 90 Received the half of the amount due

July 28 Received the rest of the amount due Required : Journalize the transactions for Success Company

Question 3 On September 1, Khaled Company had an inventory of 15 shirts at a cost of $15 each. The company uses a perpetual inventory system. During September, the following transactions and events occurred. Sept 4 Sept 6 Sept 9 Purchased 70 shirts at $15 each from Ahmad , terms of 2/10,n/30 Returned of 16 shirts purchased on Sept 4 that were defective Sold 20 shirts for $25 each to a Tamer store, terms 2/10, n/30

Sept 13 Sold 15 shirts for $25 each to Nader Company, terms n/30 Sept 14 Paid Ahmad in full, less discount Required : Journalize the September transactions for Khaled Company

Question 4 : (Adjusting entries) Consider the following independent cases: 1) Laila company had inventory on hand of JD 4,700,but the books showed ending inventory of JD 4,750 2) Sameer Company had merchandise inventory account of JD 6,200. A physical count of inventory determined that merchandise inventory is on hand of JD 6,300 Required : Prepare the necessary adjusting entry for each case above

Question 5 : (Income Statement) Dina Company gathered the following condensed data for the year ended December 31, 2008 : Cost of goods sold Sales Administrative Expenses Interest Expense Dividend revenue Loss from employee strike Selling expenses Sales Discounts $ 750,000 1,250,000 25,000 16,000 38,000 93,000 34,000 150,000

Sales Returns and Allowances 100,000 Required : 1. Calculate gross profit percentage (rate) 2. Prepare a single-step income statement for the year ended December 31, 2008 3. Prepare a multiple-step income statement for the year ended December 31, 2008

Question 6 : Closing Entries A company had the following accounts balances :

Cash Sales Dividends Advertising expense Rent expense Equipment Depreciation expense

JD 77,000 325,000 15,000 5,000 4,500 101,000 3,000

Sales returns and allowances 17,000 Cost of good sold Freight out expense Sales discount Retained earnings 140,000 12,000 3,000 457,000

Required : Prepare the necessary closing entries at the end of the period