Accounting Equations and Operational Profit Analysis

School: LIM College - Course: ACCT 2700 - Subject: Accounting

LIM College ACC 2700, Spring 2022 Final exam Instructions: Write your name on each sheet of this exam.Put your answers in the spaces provided.You may separate the sheets if you wish - we will re-staple them when you hand your paper in.Hand in allpages of this exam, even if you have not written on them all.Good luck! Formula: BEP = FC ÷ UCMBEP(TP) = (FC + TP) ÷ UCM BEP = FC ÷ CM ratioMOS = S - BEPS MOS = (S - BEPS) ÷ S x %MOS = (S-BEPS) ÷USP RI = IO - (% X IA)ROI = IO ÷ IA 1.(39 points)The following transactions occurred during the month of November in the operation of Wonderful Buy, Inc, a retailer of electronic merchandise. Record each transaction listed below to show its impact on the accounting equation in the table provided on the next page for that purpose. For any entry that impacts Retained Earnings, write a brief description in the column provided. November 4Purchased merchandise for $7,000 on account from International Fragrance Corporation, terms: 3/10, n/60. November 16Sold merchandise to a customer on account for $6,500, terms 2/10, n/30. The merchandise had cost Wonderful Buy's $3,200. November 18Sold merchandise to a customer for cash, $850. The merchandise had cost Wonderful Buy's $350. November 19 Customer returned $200 of the merchandise from the sale on November 18 and was given a refund. The merchandise had cost Wonderful Buy's $90. November 26Received full amount due from the customer for the sale of November 16. November 27Paid shipping chargeson merchandise purchased on November 4, $250 November 30Recorded the shrinkage adjustment. The inventory on hand as determined by taking a physical inventory at the end of November is $3,200.

Name_____Jalen Reed_____ Date____3/4/22______________ For question #1a, b, and c: Assets = Liabilities + Stockholders' Equity AccountsMerchandiseAccounts Retained Description of DateCashReceivableInventoryPayableEarningsRetained Earnings transaction 11/47,0007,000 11/166.5003,2003,300Sales 6500 less COGS 3200 11/18850350500Sales 850 less COGS 350 11/1920090110Sales R 200 less COGS 90 11/266,5006,500 11/27250250Shipping Charges paid as expense 11/30340340Inventory Shrinkage Adjustment 6,90032007,0003,100