Inferring Transactions from Financial Statements Costco Wholesale Corporation operates membership… 1 answer below »

 
   

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Inferring Transactions from Financial Statements
Costco Wholesale Corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 634 locations across the U.S. as well as in Canada, the United Kingdom, Japan, Australia, South Korea, Taiwan, Mexico and Puerto Rico. As of its fiscal year-end 2013, Costco had approximately 71.2 million members. Selected fiscal-year information from the company’s balance sheets follows. ($ millions). Selected Balance Sheet Data 2013 2012 Merchandise inventories $7,894 $7,096 Deferred membership income (liability) 621 550

(a) During fiscal 2013, Costco collected $2,286 million cash for membership fees. Use the financial statement effects template to record the cash collected for membership fees.
(b) Costco recorded merchandise costs (that is, cost of goods sold) of $91,948 million in 2013. Record this transaction in the financial statement effects template.
(c) Determine the value of merchandise that Costco purchased during 2013. Use the financial statement effects template to record these merchandise purchases. Assume all of Costco’s purchases are on credit.

Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital (a) Answer Answer Answer Answer Answer (b) Answer Answer Answer Answer Answer (c) Answer Answer Answer Answer Answer

Income Statement
Revenue

Expenses
=
Net Income Answer Answer Answer Answer Answer Answer Answer Answer Answer