Products

Holooly Rewards

We are determined to provide the latest solutions related to all subjects FREE of charge!

Please sign up to our reward program to support us in return and take advantage of the incredible listed offers.

Enjoy Limited offers, deals & Discounts by signing up to Holooly Rewards Program

Holooly Ads. Manager

Advertise your business, and reach millions of students around the world.

Holooly Tables

All the data tables that you may search for.

Holooly Arabia

For Arabic Users, find a teacher/tutor in your City or country in the Middle East.

Holooly Sources

Find the Source, Textbook, Solution Manual that you are looking for in 1 click.

Holooly Help Desk

Need Help? We got you covered.

Chapter 5

Q. 5.9

Taking into account the information provided in Exercise 5 related to transactions performed by Top Printers S.R.L., journalise all the transactions for December 20X8 if the company’s management decides to apply FIFO.

Step-by-Step

Verified Solution

Considering the case Top Printers S.R.L. is applying FIFO for determining the cost of goods sold, the following transactions are recorded by the entity:

1. December 3rd, 20X8, a purchase of 100 pieces at the unit price of 1100 lei/piece, involving delivery costs in the amount of 10,000 lei and resulting an acquisition cost of 1200 lei/piece previously computed; 19% VAT is applied;


142,800 lei              %                                 =      Accounts payable                      142,800 lei

120,000 lei              Merchandise

22,800 lei               VAT deductible


 

2. December 15th, 20X8, a sale of 120 printers at the selling price of 1500 lei/piece, VAT 19%; The selling transaction implies the following two steps:
a) Recognising the revenue (the actual sale): the selling price is in the total amount of 120 units × 1500 lei/unit = 180,000 lei:


214,200 lei                Accounts receivable   =    %                                                                                                 214,200 lei

Revenues from the sale of merchandise                              180,000 lei
VAT collected                                                                                34,200 lei


 

b) Recognising the expense (the disposal of the goods sold)—if FIFO is applied, the cost of goods sold is in the amount of 124,000 lei, as determined in Exercise 5 (Sect. 5.2.2):


124,000 lei                               Cost of goods sold/Expenses with merchandise     =                   Merchandise                        124,000 lei


 

3. December 18th, 20X8, an acquisition of 20 printers at a unit cost of 1600 lei/piece, VAT 19%;


38,080 lei            %                             =     Accounts payable              38,080 lei

32,000 lei           Merchandise

6080 lei              VAT deductible


 

4. December 23rd, 20X8, a sale of 90 printers at the selling price of 1800 lei/piece, VAT 19%:
The same two steps of the selling transaction are applied:
a) Recognising the revenue (the actual sale) − the selling price is in the total amount of 90 units × 1800 lei/unit = 162,000 lei:


192,780 lei                               Accounts receivable     =    %                                                                                       192,780 lei

Revenues from the sale of merchandise                162,000 lei
VAT collected                                                                 30,780 lei


 

b) Recognising the expense (the disposal of the goods sold) − if FIFO is applied, the cost of goods sold is in the amount of 112,000 lei, as determined in Exercise 5 (Sect. 5.2.2):


112,000 lei                       Cost of goods sold/Expenses with merchandise                              = Merchandise                            112,000 lei