DIRECTIONS:
A) Prepare journal entries for the following items
B) Post the journal entries into t-accounts or three-column form of account (starting balances would be those amounts per the post-closing trial balance)
C) Prepare an Income Statement for the month ended January 31,2017
D) Prepare a Statement of Retained Earnings for the month ended January 31, 2017
E) Prepare a Balance Sheet for January 31, 2017
The following transactions occurred during 2017 (the company uses a perpetual inventory system with FIFO):
1) Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock
2) Jan 4 Purchased 20 turkeys at $50 each on account from Turkey Farms.
3) Jan 4 Established a $200 petty change fund
4) Jan 5 Sold 6 turkeys for $200 each to Mr. Pilgrim, terms 2/10, n/30.
5) Jan 6 Sold 12 turkeys at $200 each for cash
6) Jan 8 Paid wages of $240
7) Jan 9 Mr. Pilgrim returned one turkey because they originally ordered only 5.
8) Jan 12 Purchased equipment on account for $2,000
9) Jan 14 Received payment in full from Mr. Pilgrim
10) Jan 15 Purchased 10 turkeys at $52 each on account from Thanksgiving Industries, terms 1/10, n/30.
11) Jan 15 Paid utility bill of $120
12) Jan 16 Returned 2 turkeys to Thanksgiving Industries because they were defective.
13) Jan 17 Sold 8 turkeys for $245 each for cash
14) Jan 18 Paid tax bill from 2016.
15) Jan 18 Performed the service of turkey grooming ($800 worth); we received the cash in 2016
16) Jan 19 Paid Accounts Payable in full from 2016
17) Jan 20 Received $2,200 cash from customers paying on their accounts
18) Jan 21 Received a bill from the local radio station for advertising in the amount of $400
19) Jan 22 Purchased 20 turkeys for $55 each on account from Stuffing & Cranberry Company; terms 2/5, n/30
20) Jan 23 Sold 10 turkeys to Turkey Leg Corporation for $260 each on account; terms 3/10, n/30
21) Jan 25 Paid freight costs from Stuffing & Cranberry Company of $10.
22) Jan 26 Received payment in full from Turkey Leg Corporation
23) Jan 27 Sold 10 turkeys to customers on credit for $260 each.
24) Jan 28 Paid Stuffing & Cranberry Company for the
purchase on Jan 22
25) Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40
26) Jan 30 Performed a physical inventory count and counted
only 1 turkey on hand.
27) Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check.
28) Jan 31 One monthâs prepaid insurance needs to be expensed for January ($1,200 is for the whole year)
29) Jan 31 Depreciate one monthâs worth of the building and equipment (Using straight line method; building
has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value)
30) Jan 31 The estimated bad debt expense under the percentage of sales basis is $120.
31) Jan 31 Paid dividends of $500
DIRECTIONS:
A) Prepare journal entries for the following items
B) Post the journal entries into t-accounts or three-column form of account (starting balances would be those amounts per the post-closing trial balance)
C) Prepare an Income Statement for the month ended January 31,2017
D) Prepare a Statement of Retained Earnings for the month ended January 31, 2017
E) Prepare a Balance Sheet for January 31, 2017
The following transactions occurred during 2017 (the company uses a perpetual inventory system with FIFO):
1) Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock
2) Jan 4 Purchased 20 turkeys at $50 each on account from Turkey Farms.
3) Jan 4 Established a $200 petty change fund
4) Jan 5 Sold 6 turkeys for $200 each to Mr. Pilgrim, terms 2/10, n/30.
5) Jan 6 Sold 12 turkeys at $200 each for cash
6) Jan 8 Paid wages of $240
7) Jan 9 Mr. Pilgrim returned one turkey because they originally ordered only 5.
8) Jan 12 Purchased equipment on account for $2,000
9) Jan 14 Received payment in full from Mr. Pilgrim
10) Jan 15 Purchased 10 turkeys at $52 each on account from Thanksgiving Industries, terms 1/10, n/30.
11) Jan 15 Paid utility bill of $120
12) Jan 16 Returned 2 turkeys to Thanksgiving Industries because they were defective.
13) Jan 17 Sold 8 turkeys for $245 each for cash
14) Jan 18 Paid tax bill from 2016.
15) Jan 18 Performed the service of turkey grooming ($800 worth); we received the cash in 2016
16) Jan 19 Paid Accounts Payable in full from 2016
17) Jan 20 Received $2,200 cash from customers paying on their accounts
18) Jan 21 Received a bill from the local radio station for advertising in the amount of $400
19) Jan 22 Purchased 20 turkeys for $55 each on account from Stuffing & Cranberry Company; terms 2/5, n/30
20) Jan 23 Sold 10 turkeys to Turkey Leg Corporation for $260 each on account; terms 3/10, n/30
21) Jan 25 Paid freight costs from Stuffing & Cranberry Company of $10.
22) Jan 26 Received payment in full from Turkey Leg Corporation
23) Jan 27 Sold 10 turkeys to customers on credit for $260 each.
24) Jan 28 Paid Stuffing & Cranberry Company for the
purchase on Jan 22
25) Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40
26) Jan 30 Performed a physical inventory count and counted
only 1 turkey on hand.
27) Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check.
28) Jan 31 One monthâs prepaid insurance needs to be expensed for January ($1,200 is for the whole year)
29) Jan 31 Depreciate one monthâs worth of the building and equipment (Using straight line method; building
has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value)
30) Jan 31 The estimated bad debt expense under the percentage of sales basis is $120.
31) Jan 31 Paid dividends of $500
Related questions
Chippewas Company sells one product. Presented below isinformation for January for Chippewas Company.
| Jan. 1 | Inventory | 102 | units at $5 each | ||
| 4 | Sale | 78 | units at $8 each | ||
| 11 | Purchase | 143 | units at $7 each | ||
| 13 | Sale | 110 | units at $9 each | ||
| 20 | Purchase | 168 | units at $6 each | ||
| 27 | Sale | 107 | units at $10 each |
Chippewas uses the FIFO cost flow assumption. All purchasesand sales are on account.
A. Assume Chippewas uses a periodic system. Prepareall necessary journal entries, including the end-of-month closingentry to record cost of goods sold. A physical count indicates thatthe ending inventory for January is 118 units.
Journal Entries:
Jan 4th: ________
_________
Jan 11th:________
_________
Jan. 13th: ________
_________
Jan. 20th:_________
__________
Jan. 27th:__________
Jan 31st: _________
__________
__________
___________
| Introduction |
Jones Widget Company (JWC) incorporated at the beginning of2014. Below is the post closing trial balance as of 12/31/2014. |
| Account Title | Balance | ||
| Cash | 10,900 | ||
| AccountsReceivable | 8,950 | ||
| Allowance for DoubtfulAccounts | 1,095 | ||
| Inventory | 11,560 | ||
| Prepaid Rent | 3,000 | ||
| Equipment | 39,000 | ||
| AccumulatedDepreciation | 3,800 | ||
| Accounts Payable | 0 | ||
| Sales Tax payable | 600 | ||
| FICA Taxes Payable | 1,000 | ||
| Federal Income Tax(FIT) Payable | 600 | ||
| Wages Payable | 1,350 | ||
| Unemployment taxespayable | 1,000 | ||
| Unearned Revenue | 3,750 | ||
| Interest Payable | 360 | ||
| Notes Payable | 16,000 | ||
| Common Stock | 20,300 | ||
| Add'l PIC | 16,210 | ||
| RE - December 31,2014 | 12,545 | ||
| Treasury Stock | 5,200 | ||
| Additional Information: |
| ⢠| JWC establishes a policy that it will sell inventory at $150 perunit. Sales taxes are 6%. JWC will use the FIFO method and recordCOGS on a perpetual basis. |
| ⢠| Employee wages are $3,800 per month. Employees are paid on the16th for the first half of the month and on the first of thefollowing month for the second half of each month. The income taxeswithheld are $300 each paycheck, and the FICA taxes are $250 perpaycheck. The withholding and the employerâs matching contributionare paid monthly on the second day of the month. In addition,unemployment taxes of $65 are accrued with each payroll. The taxesare paid on March 31. |
| ⢠| The Beginning inventory of $11,560 consists of 170 units. |
| ⢠| ThePrepaid Rent balance is for January 2015. |
| ⢠| The equipment was purchased on July 1, 2014. It is beingdepreciated using the straight line method. |
| ⢠| Unearned Revenue is for 25 units ordered and paid for in advanceby two customers in late December. One order will be filled inJanuary, the remainder in early February. |
| ⢠| The Notes payable represents a $16,000 bank loan received onOctober 1, 2013 at 9% annual interest. |
| ⢠| The parvalue on the common stock is $2. |
| ⢠| Thetreasury stock account has 400 shares. |
| ⢠| Record alltransactions to the nearest dollar. |
| Below are transactions for January2015 |
| Jan 1 | PaidDecember 31 payroll previously accrued. |
| Jan 2 | A $104,0006% six year bond is issued. The effective yield is 7%. |
| 6% | 7% | ||
| Present Value of $1factors | .7050 | .6663 | |
| Present Value of anAnnuity of $1 factors | 4.9173 | 4.7665 | |
| Jan 2 | A truck is purchased for $17,000 cash. It is estimated the truckwill be used for 50,000 miles and will have no salvage value.(Record the purchase to the account "Vehicles"). |
| Jan 2 | Payroll taxes payable (FIT & FICA) recorded in December areremitted to the IRS. |
| Jan 5 | A $1,050customer account is written off as uncollectible. |
| Jan 6 | Sales on account of 165 units of inventory occur during January.Include sales tax of 6%. |
| Jan 10 | Sales taxes of $600 which had been collected and recorded inDecember are paid to the state. |
| Jan 11 | Anadditional 60 units of inventory are purchased on account for$3,900. |
| Jan 12 | The equipment purchased in 2014 for $39,000 is sold for $37,000.No additional depreciation is recorded for January. |
| Jan 14 | Having sold the equipment, JWC pays off the note in full. Theamount paid is $16,414 which includes an additional $54 interestthrough Jan 14. |
| Jan 15 | A portion of the advance order from December (20 units) isdelivered. There is no sales tax on this order. |
| Jan 16 | Record and pay payroll for January 1-15. Record the employerâsmatching share of FICA taxes And the unemployment taxes also. |
| Jan 20 | 200 sharesof the treasury stock are sold for $3,800. |
| Jan 21 | Collections from sales on account totaled $9,900. |
| Jan 27 | Sold theother 200 shares of the treasury stock for $2,000. |
| Jan 28 | JWC declares and distributes a 10% Stock dividend. The marketprice of the stock at the time is $5 per share. (Hint on thestatement of retained earnings, this amount will should be shown asa dividend). |
| Jan 31 | (Adjusting 1) Record depreciation on the truck. During January,the truck is driven 2,500 miles. |
| Jan 31 | (Adjusting 2) It is estimated that 3% of the ending accountsreceivable balance will be uncollectible. |
| Jan 31 | (Adjusting3) Record January rent expired. |
| Jan 31 | (Adjusting 4) Accrue January 31 payroll, which will be payableon February 1. Record the employerâs matching share of FICA taxesalso. |
| Jan 31 | (Adjusting 5) Record ONE MONTHâS interest expense andamortization of premium or discount on the bond. Round to thenearest dollar. |
| 1-a. | Prepare all January journal entries and adjusting entries
|
