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John’s Specialty Store uses a periodic inventory system. Thefollowing are some inventory transactions for the month of May2016:

1. John's purchased merchandise onaccount for $5,200. Freight charges of $400 were paid in cash.
2.

John’s returned some of the merchandise purchased in (1). Thecost of the merchandise was $700 and John’s account was credited bythe supplier.
3. Merchandise costing $2,900 wassold for $5,400 in cash.

Required:

Prepare the necessary journal entries to record thesetransactions

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Trinidad Tremblay
Trinidad TremblayLv2
28 Sep 2019

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Waters Hardware Store completed the following merchandisingtransactions in the month of May. At the beginning of May, Water’sledger showed Cash of $10,804 and Common Stock of $10,804.

May 1 Purchased merchandise on account from Hauke Wholesale Supplyfor $8,400, terms 1/10, n/30.
2 Sold merchandise on account for $5,200, terms 2/10, n/30. Thecost of the merchandise sold was $3,900.
5 Received credit from Hauke Wholesale Supply for merchandisereturned $300.
9 Received collections in full, less discounts, from customersbilled on May 2.
10 Paid Hauke Wholesale Supply in full, less discount.
11 Purchased supplies for cash $1,215.
12 Purchased merchandise for cash $4,187.
15 Received $311 refund for return of poor-quality merchandisefrom supplier on cash purchase.
17 Purchased merchandise from Friedrich Distributors for $4,600,terms 2/10, n/30.
19 Paid freight on May 17 purchase $338.
24 Sold merchandise for cash $7,428. The cost of the merchandisesold was $5,537.
25 Purchased merchandise from Fasteners Inc. for $1,080, terms3/10, n/30.
27 Paid Friedrich Distributors in full, less discount.
29 Made refunds to cash customers for returned merchandise $127.The returned merchandise had cost $95.
31 Sold merchandise on account for $1,729, terms n/30. The cost ofthe merchandise sold was $1,121.

Journalize the transactions using a perpetual inventory system.(Credit account titles are automatically indented whenamount is entered. Do not indent manually. Record journal entriesin the order presented in the problem.)

Should be easy, answer question and give ashort explanation

I give 1 star if you just guess


Using the following transactions, calculatethe net income.

1. Bill Co. paid $3,700 for one month rent
2. Bill Co. paid $2,900 for two weeks wages
3. Bill Co. performed $6,900 in consulting services onaccount
4. Bill Co billed a customer $3,200 for servicesperformed
5. Bill Co. received $6,900 in payment for item 3
6. Bill Co performed services and immediately collected$3,700
7. Bill Co. paid $670 for advertising in the local paper

$20,700
$13,430
$13,800
$6,530
$10,230


On August 1, Olivera Company soldmerchandise in the amount of $4,600 to Wyne, with credit terms of3/10, n/30. The cost of the items sold is $3,700. Olivera uses theperpetual inventory system. On August 4, Wyne returns some of themerchandise. The selling price of the merchandise is $460 and thecost of the merchandise returned is $370.The entry or entries thatOlivera must make on August 4 is:
Sales returns andallowances 370
Accounts receivable 370
Sales returns andallowances 460
Accounts receivable 460
Accounts receivable 460
Sales returns and allowances 460
Sales returns andallowances 460
Accounts receivable 460
Merchandise inventory 370
Cost of goods sold 370
Accounts receivable 460
Sales returns and allowances 460
Cost of goods sold 370
Merchandise inventory 370
For the year ended December 31, 2010, Mason Company has implementedan employee bonus program equal to 7% of Mason's net income, whichemployees will share equally. Mason's net income (pre-bonus) isexpected to be $2,500,000, and bonus expense is deducted incomputing net income. What is the amount that needs to be recordedfor estimated bonus liability for 2010?
$115,000
$40,000
$163,551
$48,697
$175,000

A parcel of land is offered for sale at $151,000, is assessed fortax purposes at $113,000, is recognized by its purchasers as beingworth $141,000, and is purchased for $138,000. The land should berecorded in the purchaser's books at:
$144,000.
$113,000.
$138,000.
$141,000.
$151,000.


A company had cash sales of $49,563, credit sales of $38,576, salesreturns and allowances of $7,118 and sales discounts of $4,393. Thecompany's net sales for this period equal:
$76,628
$99,650
$83,746
$81,021
$88,139

At the end of the day, the cashregister's record shows $1,300, but the count of cash in the cashregister is $1,120. The correct entry to record the cash sales forthe day is:
Cash 180
Sales 180
Cash 1,120
Sales 1,120
Cash 1,300
Sales 1,300
Cash 1,120
Cash over and short 180
Sales 1,300
Cash 1,300
Sales 1,120
Cash over and short 180
A machine originally had an estimated useful life of 7 years, butafter 2 complete years, it was decided that the original estimateof useful life should have been 9 years. At that point theremaining cost to be depreciated should be allocated over theremaining:
11 years
13 years
9 years
7 years
4 years

What would be the account balance in the revenue ledger accountafter the following transactions?

Performed services and lefta bill $5,000
Performed services andcollected immediately $3,900
Performed services andbilled customer $2,600
Performed services onaccounts $6,800
Received partial payment onaccount $1,900
$18,300 Credit
$16,400 Debit
$18,300 Debit
$20,200 Credit
$16,400 Credit


A company sells leaf blowers for $150each. Each unit has a 3 year warranty that covers replacement ofdefective parts. It is estimated that 6% of all leaf blowers soldwill be returned under the warranty at an average cost of $15 each.During October, the company sold 300,000 leaf blowers. 600 leafblowers were serviced under the warranty during October at a totalcost of $30,000. The balance in the Estimated Warranty Liabilityaccount on October 1 was $15,000. What is the company's warrantyexpense for the month of October?
$259,750.
$270,000.
$30,000.
$300,000.
$265,000.

Foundations of Accounting I

Accounting Project

Written by: Karen Pitsch

David’s Entertainment is a merchandising business. Their accountbalances as of November 30, 2012 (unless otherwise indicated), areas follows:

110 Cash $ 73,920

112 AccountsReceivable 34,250

113 Allowance for DoubtfulAccounts 11,000

115 MerchandiseInventory 123,900

116 PrepaidInsurance 3,750

117 StoreSupplies 2,850

123 StoreEquipment 100,800

124 Accumulated Depreciation-StoreEquipment 20,160

210 AccountsPayable 21,450

211 SalariesPayable 0

218 InterestPayable 0

220 Note Payable (Due2017) 15,000

310 D. Williams, Capital (January 1,2012) 73,260

311 D. Williams,Drawing 50,000

312 IncomeSummary 0

410 Sales 853,445

411 Sales Returns andAllowances 20,020

412 SalesDiscounts 13,200

510 Cost of MerchandiseSold 414,575

520 Sales SalariesExpense 74,400

521 AdvertisingExpense 18,000

522 DepreciationExpense 0

523 Store SuppliesExpense 0

529 Miscellaneous SellingExpense 2,800

530 Office SalariesExpense 40,500

531 RentExpense 18,600

532 InsuranceExpense 0

533 Bad DebtExpense 0

539 Miscellaneous AdministrativeExpense 1,650

550 InterestExpense 1,100

David’s Entertainment uses the perpetual inventory system andthe First-in, First-out costing method. Transportation-in andpurchase discounts should be added to the Inventory Control Sheet,but since this will complicate the computation of the First-in,First-out costing method, please ignore this step in the process.They also use the Allowance Method for bad debt.

The Accounts Receivable and Accounts Payable Subsidiary Ledgersalong with the Inventory Control Sheet should be updated as eachtransaction affects them (daily).

David’s Entertainment sells four types of televisionentertainment units.

The sale prices of each are:

TV A: $3,500

TV B: $5,250

TV C: $6,125

PS D: $9,000

During December, the last month of the accounting year, thefollowing transactions were completed:

Dec. 1. Issued check number 2632 for theDecember rent, $2,600.

Purchased three TV C units on account from Prince Co., terms2/10, n/30, FOB shipping point, $11,100.

Issued check number 2633 to pay the transportation changes onpurchase of December 3, $400. (NOTE:Do not include shipping andpurchase discounts to the Inventory Control sheet for thisproject.)

Sold four TV A and four TV B on account to Albert Co., invoice891, terms 2/10, n/30, FOB shipping point.

Sold two projector systems for cash.

Purchased store supplies on account from Matt Co., terms n/30,$580.

Issued check to Prince Co. number 2634 for the full amount due,less discount allowed.

Issued credit memo for one TV A unit returned on sale ofDecember 6.

Issued check number 2635 for advertising expense for last halfof December, $1,500.

Received cash from Albert Co. for the full amount due (lessreturn of December 14 and discount).

19. Issued check number 2636 to buy two TV C units, $7,600.

19. Issued check number 2637 for $6,100 to Joseph Co. onaccount.

Sold five TV C units on account to Cameron Co., invoicenumber

892, terms 1/10, n/30, FOBshipping point.

For the convenience of the customer, issued check number 2638for shipping charges on sale of December 20, $700.

Received $12,250 cash from McKenzie Co. on account, nodiscount.

Purchased three projector systems on account from Elisha Co.,terms 1/10, n/30, FOB destination, $15,600.

24. Received notification that Marie Co. has been grantedbankruptcy with no

amount of recovery. We are to write-off her amount due. (Note:See page

402 for entry required.)

Issued a debit memo for return of $5,200 because of a damagedprojection

system purchased onDecember 21, receiving credit from the seller.

Issued check number 2639 for refund of cash on sales made forcash, $600.(Customer was going to return goods until an allowancewas arranged.)

27. Issued check number 2640 for sales salaries of $1,750 andoffice

salaries of $950.

Purchased store equipment on account from Matt Co., terms n/30,FOB

destination, $1,200.

Issued check number 2641 for store supplies, $470.

Sold four TV C units on account to Randall Co., invoice number893,

terms 2/10, n/30, FOB shipping point.

Received cash from sale of December 20, less discount, plustransportation

paid on December 20. (Roundcalculations to the nearest dollar.)

Issued check number 2642 for purchase of December 21, lessreturn

of December 25 and discount.

Issued a debit memo for $300 of the purchase returned from

December 28.

Instructions:

Enter the balances of each of the accounts in the appropriatebalance column of a four-column account (General Ledger).WriteBalance in the item section, and place a check mark (x) in the PostReference column.

Journalize the transactions in a sales journal, purchasesjournal, cash receipts journal, cash payments journal, or generaljournal as illustrated in chapter 7.Also post to the AccountsReceivable and Accounts Payable Subsidiary ledgers and InventoryControl Sheet as needed.

Total each column on the special journals and prove thejournal.

Post the totals of the account named columns and individuallypost the “other” columns as well to the General Ledger.

Prepare the Schedule of Accounts Receivable and the Schedule ofAccounts Payable (their total amount must equal the amount in theircontrolling general ledger account).

Prepare the unadjusted trial balance on the worksheet.

Complete the worksheet for the year ended December 31, 2012,using the following adjustment data:

a. Merchandise inventory on December31 $90,800

b. Insurance expired during theyear 1,250

c. Store supplies on hand on December31 975

d. Depreciation for the current year needs tobe calculated. The business uses

the Straight-line method, the store equipment has a useful life of10 years

with no salvage value. (NOTE: the purchase and return will not beincluded

as the dates of the transactions were after the 15th ofthe month).

e. Accrued salaries on December 31:

Salessalaries $1,400

Officesalaries 760 2,160

f. The note payable terms are at 8%, payment is notbeing made until Jan. 3, 2013. Interest must be recognized for onemonth.

g. Net realizable value of Accounts Receivable is determined tobe $27,950.

8. Prepare a multiple-step income statement, a statement ofowner’s equity, and a

classified balance sheet in goodform. (Recommend review of “Current Liabilities” on pages 166 &167 and “Current Maturities of Long-term Debt” on page 480.)

9. Journalize and post the adjusting entries.

Journalize and post the closing entries.Indicate closed accountsby inserting a line

in both balance columns opposite the closing entry.

Prepare a post-closing trial balance.

Check Figures for Accounting Project:

Cash Receipts Journal; Cash Column: 97,939

Unadjusted Trial Balance Total: 1,080,620

Net Income: 264,350

Post-Closing Trial Balance: 347,490

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