ACCT 2001 : Exam 2 Extra Credit

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azuremammoth471

15 Mar 2019

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On december 1, 2012, shiras distributing company had the following account balances. During december, the company completed the following summary transactions. Dec. 6 paid ,750 for salaries due employees, of which is for december and ,190 is for. 8 received ,910 cash from customers in payment of account (no discount allowed). The cost of the merchandise sold was ,010. 13 purchased merchandise on account from gong co. ,400, terms 2/10, n/30. 18 sold merchandise on account ,800, terms 3/10, n/30. 23 paid gong co. in full, less discount. 27 received collections in full, less discounts, from customers billed on december 18. Journalize the december transactions using a perpetual inventory system. (credit account titles are automatically indented when amount is entered. Adjustment data: accrued salaries payable , depreciation per month, supplies on hand ,580, income tax due and unpaid at december 31 is . Journalize the adjusting entries. (credit account titles are automatically indented when amount is entered.

Related Questions

On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.

	Debits		Credits
Cash	$4,795	Accumulated depreciation	$1,000
Accounts Receivable	2,320	Accounts Payable	6,800
Supplies	1,000	Unearned Service Revenue	400
Equipment	40,000	Salaries Payable	550
		Common Stock	11,000
		Retained Earnings	28,365
	$48,115		$48,115

During November the followingsummary transactions were completed.

Nov. 8	Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November.
10	Received $1,400 cash from customers in payment of account.
11	Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30.
12	Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000.
15	Received credit from Midwest Wholesale Supply for merchandisereturned $200.
19	Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12.
20	Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15^th.)
22	Received $1,300 cash for services performed in November.
25	Purchased equipment on account $3,000.
27	Purchased supplies on account $1,300.
28	Paid creditors $2,500 of accounts payable due.
29	Paid November rent $300.
29	Paid salaries $1,100.
29	Performed services on account and billed customers for servicesprovided $1,900.
29	Received $550 from customers for services to be provided in thefuture.

Adjustment data:

1.	Supplies on hand are valued at $1,600.
2.	Accrued salaries payable as of 11/30 are $500.
3.	Depreciation for the month is $750.
4.	$650 of the unearned service revenue has not been earned bymonth end.

Instructions

Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.

Cash

Accounts Receivable

Supplies

Store Equipment

Accumulated Depreciationâ

Store Equipment

Accounts Payable

Unearned

Service Revenue

Salaries Payable

Common Stock

Retained Earnings

General Ledger (Continued)

Income Summary

ultramarinegrasshopper260

Please fill out the table below with the given information.

The following were selected from among the transactionscompleted by Babcock Company during November of the currentyear:

Nov.	3	Purchased merchandise on account from Moonlight Co., list price$85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
	4	Sold merchandise for cash, $37,680. The cost of the merchandisesold was $22,600.
	5	Purchased merchandise on account from Papoose Creek Co.,$47,500, terms FOB shipping point, 2/10, n/30, with prepaid freightof $810 added to the invoice.
	6	Returned $13,500 ($18,000 list price less trade discount of 25%)of merchandise purchased on November 3 from Moonlight Co.
	8	Sold merchandise on account to Quinn Co., $15,600 with termsn/15. The cost of the merchandise sold was $9,400.
	13	Paid Moonlight Co. on account for purchase of November 3, lessreturn of November 6.
	14	Sold merchandise on VISA, $236,000. The cost of the merchandisesold was $140,000.
	15	Paid Papoose Creek Co. on account for purchase of November5.
	23	Received cash on account from sale of November 8 to QuinnCo.
	24	Sold merchandise on account to Rabel Co., $56,900, terms 1/10,n/30. The cost of the merchandise sold was $34,000.
	28	Paid VISA service fee of $3,540.
	30	Paid Quinn Co. a cash refund of $6,000 for returned merchandisefrom sale of November 8. The cost of the returned merchandise was$3,300.

Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.

CHART OF ACCOUNTS

Babcock Company

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Quinn Co.
122	Accounts Receivable-Rabel Co.
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
211	Accounts Payable-Moonlight Co.
212	Accounts Payable-Papoose Creek Co.
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable
	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journalize the transactions. Refer to the Chart of Accountsfor exact wording of account titles.

PAGE 10

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

blushskunk43

On November 1, 2012 the following were the account balances ofSolo Sales and Service, Inc. The perpetual inventory method isused.

	Debits		Credits
Cash	$4,795	Accumulated depreciation	$1,000
Accounts Receivable	2,320	Accounts Payable	6,800
Supplies	1,000	Unearned Service Revenue	400
Equipment	40,000	Salaries Payable	550
		Common Stock	11,000
		Retained Earnings	28,365
	$48,115		$48,115

During November the followingsummary transactions were completed.

Nov. 8	Paid $1,150 for salaries due employees, of which $550 is forOctober salaries payable and $600 is for November.
10	Received $1,400 cash from customers in payment of account.
11	Purchased merchandise on account from Midwest Wholesale Supplyfor $6,000, terms 2/10, n/30.
12	Sold merchandise on account for $4,500, terms 2/10, n/30. Thecost of the merchandise sold was $3,000.
15	Received credit from Midwest Wholesale Supply for merchandisereturned $200.
19	Received collections in full, less discounts, from customersbilled on sales of $4,500 on November 12.
20	Paid Midwest Wholesale Supply in full, less discount. (Donâtforget the return on the 15^th.)
22	Received $1,300 cash for services performed in November.
25	Purchased equipment on account $3,000.
27	Purchased supplies on account $1,300.
28	Paid creditors $2,500 of accounts payable due.
29	Paid November rent $300.
29	Paid salaries $1,100.
29	Performed services on account and billed customers for servicesprovided $1,900.
29	Received $550 from customers for services to be provided in thefuture.

Adjustment data:

1.	Supplies on hand are valued at $1,600.
2.	Accrued salaries payable as of 11/30 are $500.
3.	Depreciation for the month is $750.
4.	$650 of the unearned service revenue has not been earned bymonth end.

Instructions

Print out the solution pages for thegeneral ledger, journal and worksheet that follow and enter thefollowing transactions (might be a good idea to use pencil):

Enter the November 1 balances in ledger accounts. Use T accountsprovided on the next page.

Enter the November transactions (not adjusting entries untilrequirement âeâ) in the general journal provided on the nextpage.

Post to the ledger accounts. You will need to add someaccounts.

Prepare an unadjusted trial balance at November 30 and enter onthe worksheet. Then complete the other worksheet columns. (Seebelow.)

Worksheetrequirement: Using your unadjusted trial balance fromabove instructions and the data for adjusting entries, prepare a 10column worksheet similar to the one in the chapter 4 appendix ofyour text.

Journalize and post adjusting entries.

Prepare a multi-step income statement and aretained earnings statement for November and aclassified balance sheet at November 30. Use yourown paper. (No formatted sheets are supplied as we did for theother items.) These statements must be properlytitled/formatted.

Journalize and post closing entries.

salmonlizard423

ACCT 2001 : Exam 2 Extra Credit

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