$101,114 $40,915 = 2.47
|
|
- Gillian Nash
- 8 years ago
- Views:
Transcription
1 SOLUTION (concluded) 4. Working Capital = $101,114 $40,915 = $60,199 Current Ratio = $101,114 $40,915 = 2.47 DISCUSSION QUESTIONS Suggested Responses 1. Current assets are listed in the order of their liquidity (or convertibility into cash). 2. The cost of goods available for sale is the cost of goods that could be sold. The cost of goods sold, on the other hand, is the cost of goods that were actually sold. The difference between the cost of goods available for sale and the cost of goods sold is the amount of the ending inventory. 3. The basic classifications found on an income statement for a merchandising business are Revenue from Sales, Cost of Goods Sold, Operating Expenses, Other Income, and Other Expenses. 4. Current liabilities are debts that will become due within a company s normal operating cycle, usually within one year. An example of a current liability is Accounts Payable. Long-term liabilities are debts that are payable over a comparatively long period, usually more than one year. An example of a long-term liability is Mortgage Payable. 5. The difference between income from operations and net income is Other Income and Other Expenses. Income from Operations + Other Income Other Expenses = Net Income In comparing the results of operations over a number of years, income from operations is more useful, because it represents a company s regular recurring revenue and expenses. 6. Net Sales = Sales Sales Returns and Allowances Sales Discounts Net Purchases = Purchases Purchases Returns and Allowances Purchases Discounts These calculations show the true amounts actually earned and the amount actually added to inventory. 7. (a) Purchases Discounts is debited in the first closing entry, in which revenue accounts are closed. (b) Sales Returns and Allowances is credited in the second closing entry, in which expense accounts are closed. (c) Freight In is credited in the second closing entry, in which expense accounts are closed. (d) Gain on Disposal of Property and Equipment is debited in the first closing entry, in which revenue accounts are closed. 8. If an adjusting entry (a) increases an asset account or a liability account (except Merchandise Inventory or a contra account, such as Accumulated Depreciation) and (b) the asset or liability did not have a balance prior to the adjustment, then reverse the adjusting entry Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 625
2 SOLUTIONS TO EXERCISES Exercise 12-1 a. Net Sales, $242,000 $6,000 = $236,000 Cost of Goods Available for Sale, $152,000 + $170,000 = $322,000 Gross Profit, $236,000 $186,000 = $50,000 b. Sales Returns and Allowances, $304,000 $297,000 = $7,000 Net Purchases, $404,000 $134,000 = $270,000 Gross Profit, $297,000 $228,000 = $69,000 c. Sales, $628,000 + $10,000 = $638,000 Beginning Merchandise Inventory, $486,000 $416,000 = $70,000 Cost of Goods Sold, $486,000 $89,000 = $397,000 Gross Profit, $628,000 $397,000 = $231,000 Exercise 12-2 Merchandise Inventory, Jan. 1, 20-- $185,000 Purchases $476,000 Less: Purchases Returns and Allowances Purchases Discounts $9,000 8,500 17,500 Net Purchases $458,500 Add Freight In 12,000 Delivered Cost of Purchases 470,500 Cost of Goods Available for Sale $655,500 Less Merchandise Inventory, Dec. 31, ,000 Cost of Goods Sold $466,500 Exercise 12-3 a. Advertising Expense, SE f. Freight In, CGS b. Rent Expense, GE g. Depreciation Expense, Building, GE c. Purchases Discounts, CGS h. Interest Expense, OE d. Sales Returns and Allowances, S i. Insurance Expense, GE e. Interest Income, OI j. Delivery Expense, SE Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
3 Exercise 12-4 Bajia Company Income Statement For Year Ended June 30, 20-- Revenue from Sales: Sales $292,900 Less: Sales Returns and Allowances $ 12,100 Sales Discounts 6,100 18,200 Net Sales $274,700 Cost of Goods Sold: Merchandise Inventory, July 1, 20-- $ 26,000 Purchases $115,000 Less: Purchases Returns and Allowances $1,100 Purchases Discounts 1,200 2,300 Net Purchases $112,700 Add Freight In 6,500 Delivered Cost of Purchases 119,200 Cost of Goods Available for Sale $145,200 Less Merchandise Inventory, June 30, ,000 Cost of Goods Sold 123,200 Gross Profit $151,500 Operating Expenses: Selling Expenses $ 57,000 General Expenses 46,000 Total Operating Expenses 103,000 Net Income $ 48,500 Exercise 12-5 a. Accounts Receivable, CA f. Supplies, CA b. Building, PE g. Mortgage Payable (due in 3 years), LTL c. Wages Payable, CL h. Unearned Fees, CL d. Prepaid Taxes, CA i. D. Marlor, Capital, OE e. Mortgage Payable (current), CL j. Notes Payable (due in 3 months), CL 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 627
4 Exercise 12-6 Current Assets: Current Liabilities: Prepaid Insurance $ 1,600 Unearned Fees $ 800 Merchandise Inventory 72,000 Notes Payable 5,000 Cash 19,000 Accounts Payable 23,000 Store Supplies 1,200 Mortgage Payable Notes Receivable 3,000 (current portion) 3,500 Total $96,800 Salaries Payable 2,700 Total $35,000 Working Capital = $96,800 $35,000 = $61,800 Current Ratio = $96,800 $35,000 = 2.77 Exercise 12-7 GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 Dec. 31 Sales 502, Purchases Returns and Allowances 8, Purchases Discounts 4, Income Summary 514, Income Summary 353, Sales Returns and Allowances 7, Purchases 235, Freight In 11, Salary Expense 65, Rent Expense 22, Miscellaneous Expense 12, Income Summary 177, H. Baylor, Capital 177, ( $103,000 + $514,900 ) ( $87,000 + $353,400 ) H. Baylor, Capital 55, H. Baylor, Drawing 55, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
5 Exercise 12-8 GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 Dec. 31 Income Summary 93, H. Nishimoto, Capital 93, H. Nishimoto, Capital 75, H. Nishimoto, Drawing 75, Nishimoto Company Statement of Owner's Equity For Year Ended December 31, 20-- H. Nishimoto, Capital, January 1, 20-- Investment during the Year Net Income for the Year Subtotal Less Withdrawals for the Year Increase in Capital H. Nishimoto, Capital, December 31, 20-- $ 18,000 93,000 $111,000 75,000 $450,000 36,000 $486, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 629
6 Problem 12-1A The Fan Shop Income Statement For Year Ended December 31, 20-- Revenue from Sales: Sales $324,000 Less: Sales Returns and Allowances $ 3,400 Sales Discounts 2,707 6,107 Net Sales $317,893 Cost of Goods Sold: Merchandise Inventory, Jan. 1, 20-- $ 52,300 Purchases $201,490 Less: Purchases Returns and Allowances 2,880 Net Purchases $198,610 Add Freight In 9,790 Delivered Cost of Purchases 208,400 Cost of Goods Available for Sale $260,700 Less Merchandise Inventory, Dec. 31, ,580 Cost of Goods Sold 206,120 Gross Profit $111,773 Operating Expenses: Wages Expense $ 46,240 Rent Expense 12,610 Commissions Expense 8,310 Supplies Expense 1,842 Insurance Expense 1,240 Depreciation Expense, Building 4,600 Depreciation Expense, Equipment 2,600 Total Operating Expenses 77,442 Income from Operations $ 34,331 Other Income: Interest Income $ 1,830 Other Expenses: Interest Expense Net Income $ 35, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
7 Problem 12-1A (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 Dec. 31 Sales 324, Purchases Returns and Allowances 2, Interest Income 1, Income Summary 328, Income Summary 295, Sales Returns and Allowances 3, Sales Discounts 2, Purchases 201, Freight In 9, Wages Expense 46, Rent Expense 12, Commissions Expense 8, Supplies Expense 1, Insurance Expense 1, Depreciation Expense, Building 4, Depreciation Expense, Equipment 2, Interest Expense Income Summary 35, P. G. Ochoa, Capital 35, P. G. Ochoa, Capital 30, P. G. Ochoa, Drawing 30, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 631
8 Problem 12-2A Eckland Stereo Statement of Owner's Equity For Year Ended December 31, 20-- M. J. Eckland, Capital, January 1, 20-- $57,314 Net Income for the Year $25,485 Less Withdrawals for the Year 23,000 Increase in Capital 2,485 M. J. Eckland, Capital, December 31, 20-- $59,799 Eckland Stereo Balance Sheet December 31, 20-- Assets Current Assets: Cash $14,815 Notes Receivable 7,500 Accounts Receivable 30,170 Merchandise Inventory 50,244 Prepaid Property Taxes 2,115 Prepaid Insurance 1,640 Total Current Assets $106,484 Property and Equipment: Land $16,700 Building $50,000 Less Accumulated Depreciation 15,900 34,100 Computer Equipment $ 6,892 Less Accumulated Depreciation 5,674 1,218 Store Equipment $ 7,230 Less Accumulated Depreciation 4,424 2,806 Delivery Equipment $ 4,300 Less Accumulated Depreciation 3, Total Property and Equipment 55,654 Total Assets $162, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
9 Problem 12-2A (concluded) Eckland Stereo Balance Sheet (concluded) December 31, 20-- Liabilities Current Liabilities: Notes Payable $ 5,215 Mortgage Payable (current portion) 2,800 Accounts Payable 27,140 Wages Payable 1,984 Total Current Liabilities $ 37,139 Long-Term Liabilities: Mortgage Payable 65,200 Total Liabilities $102,339 Owner's Equity M. J. Eckland, Capital 59,799 Total Liabilities and Owner's Equity $162,138 Working Capital = Current Assets Current Liabilities $106,484 $37,139 = $69,345 Current Assets $106,484 Current Ratio = = Current Liabilities $37,139 = Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 633
10 Problem 12-3A GENERAL JOURNAL PAGE DESCRIPTION Adjusting Entries 1 2 June 30 Income Summary 112, Merchandise Inventory 112, Merchandise Inventory 116, Income Summary 116, Salary Expense 1, Salaries Payable 1, Insurance Expense 2, Prepaid Insurance 2, Depreciation Expense, Delivery Equipment 1, Accumulated Depreciation, Delivery Equipment 1, Depreciation Expense, Store Equipment 2, Accumulated Depreciation, Store Equipment 2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
11 Problem 12-3A (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 June 30 Sales 516, Purchases Returns and Allowances 9, Purchases Discounts 6, Income Summary 532, Income Summary 480, Purchases 399, Freight In 14, Salary Expense 46, Truck Expense 10, Supplies Expense 2, Miscellaneous Expense 1, Insurance Expense 2, Depreciation Expense, Delivery Equipment 1, Depreciation Expense, Store Equipment 2, Income Summary 55, P. R. Masanto, Capital 55, P. R. Masanto, Capital 26, P. R. Masanto, Drawing 26, Reversing Entry 27 July 1 Salaries Payable 1, Salary Expense 1, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 635
12 Problem 12-4A Celso and Company Work Sheet For Year Ended June 30, 20-- TRIAL 1 Cash 15, Accounts Receivable 13, Merchandise Inventory 50, Prepaid Insurance 1, Store Equipment 18, Accumulated Depreciation, Store Equipment 6, Accounts Payable 10, B. E. Celso, Capital 96, B. E. Celso, Drawing 30, Sales 208, Sales Returns and Allowances 1, Purchases 133, Purchases Returns and Allowances 4, Purchases Discounts 3, Freight In 8, Wages Expense 35, Advertising Expense 7, Rent Expense 12, Store Supplies Expense 1, , , Income Summary 22 Insurance Expense 23 Depreciation Expense, Store Equipment 24 Wages Payable Net Income NAME Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
13 Problem 12-4A (continued) ADJUSTMENTS INCOME STATEMENT SHEET 15, , (b) 54, (a) 50, , (c) , (d) 4, , , , , , , , , , , (e) 1, , , , , (a) 50, (b) 54, , , (c) (d) 4, , (e) 1, , , , , , , , , , , , , , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 637
14 Problem 12-4A (continued) Celso and Company Income Statement For Year Ended June 30, 20-- Revenue from Sales: Sales $208,030 Less Sales Returns and Allowances 1,740 Net Sales $206,290 Cost of Goods Sold: Merchandise Inventory, July 1, 20-- $ 50,280 Purchases $133,050 Less: Purchases Returns and Allowances $4,295 Purchases Discounts 3,853 8,148 Net Purchases $124,902 Add Freight In 8,350 Delivered Cost of Purchases 133,252 Cost of Goods Available for Sale $183,532 Less Merchandise Inventory, June 30, ,600 Cost of Goods Sold 128,932 Gross Profit $ 77,358 Operating Expenses: Wages Expense $ 36,892 Advertising Expense 7,710 Rent Expense 12,000 Store Supplies Expense 1,835 Insurance Expense 475 Depreciation Expense, Store Equipment 4,380 Total Operating Expenses 63,292 Net Income $ 14, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
15 Problem 12-4A (continued) Celso and Company Statement of Owner's Equity For Year Ended June 30, 20-- B. E. Celso, Capital, July 1, 20-- $96,424 Net Income for the Year $14,066 Less Withdrawals for the Year 30,000 Decrease in Capital 15,934 B. E. Celso, Capital, June 30, 20-- $80,490 Celso and Company Balance Sheet June 30, 20-- Assets Current Assets: Cash $15,349 Accounts Receivable 13,810 Merchandise Inventory 54,600 Prepaid Insurance 910 Total Current Assets $84,669 Property and Equipment: Store Equipment $18,640 Less Accumulated Depreciation 11,262 7,378 Total Assets $92,047 Liabilities Current Liabilities: Accounts Payable $10,065 Wages Payable 1,492 Total Liabilities $11,557 Owner's Equity B. E. Celso, Capital 80,490 Total Liabilities and Owner's Equity $92, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 639
16 Problem 12-4A (continued) GENERAL JOURNAL PAGE DESCRIPTION Adjusting Entries 1 2 June 30 Income Summary 50, Merchandise Inventory 50, Merchandise Inventory 54, Income Summary 54, Insurance Expense Prepaid Insurance Depreciation Expense, Store Equipment 4, Accumulated Depreciation, Store Equipment 4, Wages Expense 1, Wages Payable 1, Closing Entries Sales 208, Purchases Returns and Allowances 4, Purchases Discounts 3, Income Summary 216, Income Summary 206, Sales Returns and Allowances 1, Purchases 133, Freight In 8, Wages Expense 36, Advertising Expense 7, Rent Expense 12, Store Supplies Expense 1, Insurance Expense Depreciation Expense, Store Equipment 4, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
17 Problem 12-4A (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 June 30 Income Summary 14, B. E. Celso, Capital 14, B. E. Celso, Capital 30, B. E. Celso, Drawing 30, Reversing Entry 9 July 1 Wages Payable 1, Wages Expense 1, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 641
18 Problem 12-1B McKnight Music Store Income Statement For Year Ended December 31, 20-- Revenue from Sales: Sales $315,483 Less: Sales Returns and Allowances $ 4,348 Sales Discounts 1,817 6,165 Net Sales $309,318 Cost of Goods Sold: Merchandise Inventory, Jan. 1, 20-- $ 48,473 Purchases $185,272 Less: Purchases Returns and Allowances 1,547 Net Purchases $183,725 Add Freight In 9,173 Delivered Cost of Purchases 192,898 Cost of Goods Available for Sale $241,371 Less Merchandise Inventory, Dec. 31, ,850 Cost of Goods Sold 192,521 Gross Profit $116,797 Operating Expenses: Wages Expense $ 40,615 Rent Expense 10,840 Commissions Expense 8,220 Supplies Expense 1,826 Insurance Expense 2,624 Depreciation Expense, Building 4,220 Depreciation Expense, Equipment 4,500 Total Operating Expenses 72,845 Income from Operations $ 43,952 Other Income: Interest Income $ 925 Other Expenses: Interest Expense 1,258 (333) Net Income $ 43, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
19 Problem 12-1B (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 Dec. 31 Sales 315, Purchases Returns and Allowances 1, Interest Income Income Summary 317, Income Summary 274, Sales Returns and Allowances 4, Sales Discounts 1, Purchases 185, Freight In 9, Wages Expense 40, Rent Expense 10, Commissions Expense 8, Supplies Expense 1, Insurance Expense 2, Depreciation Expense, Building 4, Depreciation Expense, Equipment 4, Interest Expense 1, Income Summary 43, W. J. McKnight, Capital 43, W. J. McKnight, Capital 40, W. J. McKnight, Drawing 40, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 643
20 Problem 12-2B Meyer Mountain Shop Statement of Owner's Equity For Year Ended December 31, 20-- M. E. Meyer, Capital, January 1, 20-- $75,085 Net Income for the Year $24,351 Less Withdrawals for the Year 35,250 Decrease in Capital 10,899 M. E. Meyer, Capital, December 31, 20-- $85,984 Meyer Mountain Shop Balance Sheet December 31, 20-- Assets Current Assets: Cash $18,525 Notes Receivable 4,500 Accounts Receivable 22,680 Merchandise Inventory 53,542 Prepaid Taxes 1,820 Prepaid Insurance 2,450 Total Current Assets $103,517 Property and Equipment: Land $18,600 Building $42,000 Less Accumulated Depreciation 22,500 19,500 Computer Equipment $ 4,424 Less Accumulated Depreciation 2,250 2,174 Store Equipment $ 7,480 Less Accumulated Depreciation 5,085 2,395 Delivery Equipment $ 5,740 Less Accumulated Depreciation 3,225 2,515 Total Property and Equipment 45,184 Total Assets $148, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
21 Problem 12-2B (concluded) Meyer Mountain Shop Balance Sheet (concluded) December 31, 20-- Liabilities Current Liabilities: Notes Payable $ 6,500 Mortgage Payable (current portion) 2,500 Accounts Payable 19,455 Wages Payable 1,460 Total Current Liabilities $ 29,915 Long-Term Liabilities: Mortgage Payable 54,600 Total Liabilities $ 84,515 Owner's Equity M. E. Meyer, Capital 64,186 Total Liabilities and Owner's Equity $148,701 Working Capital = Current Assets Current Liabilities $103,517 $29,915 = $73,602 Current Assets $103,517 Current Ratio = = Current Liabilities $29,915 = Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 645
22 Problem 12-3B GENERAL JOURNAL PAGE DESCRIPTION Adjusting Entries 1 2 June 30 Income Summary 113, Merchandise Inventory 113, Merchandise Inventory 117, Income Summary 117, Salary Expense 1, Salaries Payable 1, Insurance Expense 2, Prepaid Insurance 2, Depreciation Expense, Delivery Equipment 2, Accumulated Depreciation, Delivery Equipment 2, Depreciation Expense, Store Equipment 2, Accumulated Depreciation, Store Equipment 2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
23 Problem 12-3B (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 June 30 Sales 532, Purchases Returns and Allowances 8, Purchases Discounts 6, Income Summary 548, Income Summary 498, Purchases 397, Freight In 23, Salary Expense 54, Truck Expense 9, Supplies Expense 2, Miscellaneous Expense 1, Insurance Expense 2, Depreciation Expense, Delivery Equipment 2, Depreciation Expense, Store Equipment 2, Income Summary 53, J. Ketcher, Capital 53, J. Ketcher, Capital 40, J. Ketcher, Drawing 40, Reversing Entry 27 July 1 Salaries Payable 1, Salary Expense 1, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 647
24 Problem 12-4B Sheldon Company Work Sheet For Year Ended January 31, 20-- TRIAL 1 Cash 16, Accounts Receivable 15, Merchandise Inventory 55, Prepaid Insurance 3, Store Equipment 24, Accumulated Depreciation, Store Equipment 3, Accounts Payable 14, M. E. Sheldon, Capital 126, M. E. Sheldon, Drawing 36, Sales 227, Sales Returns and Allowances 2, Purchases 172, Purchases Returns and Allowances 2, Purchases Discounts 3, Freight In 7, Wages Expense 24, Advertising Expense 5, Rent Expense 12, Store Supplies Expense 1, , , Income Summary 22 Insurance Expense 23 Depreciation Expense, Store Equipment 24 Wages Payable Net Loss NAME Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
25 Problem 12-4B (continued) ADJUSTMENTS INCOME STATEMENT SHEET 16, , (b) 55, (a) 55, , (c) 1, , , (d) 5, , , , , , , , , , , (e) 1, , , , , (a) 55, (b) 55, , , (c) 1, , (d) 5, , (e) 1, , , , , , , , , , , , , , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 649
26 Problem 12-4B (continued) Sheldon Company Income Statement For Year Ended January 31, 20-- Revenue from Sales: Sales $227,000 Less Sales Returns and Allowances 2,000 Net Sales $225,000 Cost of Goods Sold: Merchandise Inventory, February 1, 20-- $ 55,500 Purchases $172,000 Less: Purchases Returns and Allowances $2,375 Purchases Discounts 3,567 5,942 Net Purchases $166,058 Add Freight In 7,491 Delivered Cost of Purchases 173,549 Cost of Goods Available for Sale $229,049 Less Merchandise Inventory, January 31, ,750 Cost of Goods Sold 173,299 Gross Profit $ 51,701 Operating Expenses: Wages Expense $ 26,303 Advertising Expense 5,912 Rent Expense 12,900 Store Supplies Expense 1,503 Insurance Expense 1,285 Depreciation Expense, Store Equipment 5,482 Total Operating Expenses 53,385 Net Loss $ (1,684) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
27 Problem 12-4B (continued) Sheldon Company Statement of Owner's Equity For Year Ended January 31, 20-- M. E. Sheldon, Capital, February 1, 20-- $126,384 Net Loss for the Year $ 1,684 Less Withdrawals for the Year 36,000 Decrease in Capital 37,684 M. E. Sheldon, Capital, January 31, 20-- $ 88,700 Sheldon Company Balance Sheet January 31, 20-- Assets Current Assets: Cash $16,400 Accounts Receivable 15,100 Merchandise Inventory 55,750 Prepaid Insurance 1,795 Total Current Assets $ 89,045 Property and Equipment: Store Equipment $24,900 Less Accumulated Depreciation 9,342 15,558 Total Assets $104,603 Liabilities Current Liabilities: Accounts Payable $14,400 Wages Payable 1,503 Total Liabilities $ 15,903 Owner's Equity M. E. Sheldon, Capital 88,700 Total Liabilities and Owner's Equity $104, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 651
28 Problem 12-4B (continued) GENERAL JOURNAL PAGE DESCRIPTION Adjusting Entries 1 2 Jan. 31 Income Summary 55, Merchandise Inventory 55, Merchandise Inventory 55, Income Summary 55, Insurance Expense 1, Prepaid Insurance 1, Depreciation Expense, Store Equipment 5, Accumulated Depreciation, Store Equipment 5, Wages Expense 1, Wages Payable 1, Closing Entries Sales 227, Purchases Returns and Allowances 2, Purchases Discounts 3, Income Summary 232, Income Summary 234, Sales Returns and Allowances 2, Purchases 172, Freight In 7, Wages Expense 26, Advertising Expense 5, Rent Expense 12, Store Supplies Expense 1, Insurance Expense 1, Depreciation Expense, Store Equipment 5, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
29 Problem 12-4B (concluded) GENERAL JOURNAL PAGE DESCRIPTION Closing Entries 1 2 Jan. 31 M. E. Sheldon, Capital 1, Income Summary 1, M. E. Sheldon, Capital 36, M. E. Sheldon, Drawing 36, Reversing Entry 9 Feb. 1 Wages Payable 1, Wages Expense 1, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 653
30 NOTES AND CALCULATIONS Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
31 COMPREHENSIVE REVIEW PROBLEM (General Journal) GENERAL JOURNAL PAGE 89 DESCRIPTION Reversing Entry 1 2 Feb. 1 Salaries Payable Salary Expense Reversed the adjusting entry for 4 5 accrued salaries Accounts Receivable, Hotel Beritz 113/ 12, Sales , Sold merchandise to Hotel Beritz, 9 10 invoice No Accounts Payable, Kingston Fabrics 221/ 16, Purchases Discounts Cash , Paid Kingston Fabrics for invoice no D1739 less discount, Ck. No Purchases 511 4, Freight In Accounts Payable, Magnuson Textiles 221/ 5, Purchased merchandise from Magnuson Textiles, invoice no. RE275, invoice dated February 2, terms 1/10, n/ Utilities Expense Cash Paid Countrywide Power for electric bill, Ck. No Cash , Accounts Receivable, Jason and Waldon 113/ 10, Received payment of account from Jason and Waldon Accounts Payable, Magnuson Textiles 221/ 9, Purchases Discounts Cash 111 9, Paid Magnuson Textiles for invoice no RE64 less discount, Ck. No Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 655
32 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) GENERAL JOURNAL PAGE 90 DESCRIPTION Feb. 9 Cash 111 9, Sales 411 9, Cash sales, February Salary Expense 611 5, Employees' Income Tax Payable FICA Taxes Payable Salaries Payable 230 4, Payroll register for semimonthly period ended February Salaries Payable 230 4, Cash, R. W. Harris 111 2, Cash, T. L. Newkirk 111 1, Issued Ck. No to R. W. Harris for $2,335.74, and Ck. No to T. L. Newkirk for $1, for the February 12 payroll Payroll Tax Expense FICA Taxes Payable State Unemployment Tax Payable Federal Unemployment Tax Payable To record employer's share of FICA taxes and employer's federal and state unemployment taxes Accounts Payable, Magnuson Textiles 221/ Purchases Returns and Allowances Credit memo no. 916 for defective merchandise Employees' Income Taxes Payable 226 1, FICA Taxes Payable 227 1, Cash 111 2, Issued Ck. No to Mid-State Bank for monthly deposit of January employees federal income tax withheld Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
33 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) GENERAL JOURNAL PAGE 91 DESCRIPTION Feb. 14 Accounts Receivable, Jason and Waldon 113/ 15, Sales , Sold merchandise to Jason and 4 5 Waldon, invoice no Accounts Payable, Magnuson Textiles 221/ 4, Purchases Discounts Cash 111 4, Paid Magnuson Textiles for invoice no. RE275, Ck. No Purchases , Freight In 514 1, Accounts Payable, Brandon, Inc. 221/ 22, Purchased merchandise from Brandon, Inc., invoice no. 164M, invoice dated February 14, terms 2/10, n/ Cash 111 7, Sales 411 7, Cash sales, February Supplies Expense Cash Bought invoice forms from Quicker Printing, Ck. No Cash 111 4, Accounts Receivable, Fashion Decor 113/ 4, Received payment on account Accounts Payable, Tyson Manufacturing Company 221/ 12, Cash , Paid Tyson Manufacturing Company for invoice no. 9264D, Ck. No Accounts Receivable, Fashion Decor 113/ 17, Sales , Sold merchandise to Fashion Decor, invoice no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 657
34 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) GENERAL JOURNAL DESCRIPTION PAGE Feb. 24 Sales Returns and Allowances Accounts Receivable, Fashion Decor 113/ Credit memo no. 214 for return of 4 5 merchandise Purchases , Accounts Payable, Kingston Fabrics 221/ 16, Purchased merchandise from 9 10 Kingston Fabrics, invoice no. D1797, invoice dated February 22, terms /10, n/ Salary Expense 611 5, Employees' Income Tax Payable FICA Taxes Payable Salaries Payable 230 4, Payroll register for semimonthly period ended February Salaries Payable 230 4, Cash, R. W. Harris 111 2, Cash, T. L. Newkirk 111 1, Issued Ck. No to R. W. Harris for $2,335.74, and Ck. No to T. L. Newkirk for $1, for the February 26 payroll Payroll Tax Expense FICA Taxes Payable State Unemployment Tax Payable Federal Unemployment Tax Payable To record employer's share of FICA taxes and employer's federal and state unemployment taxes Freight In 514 1, Cash 111 1, Paid JIT Freight Line for transportation charges on merchandise purchased from Kingston Fabrics, Ck. No Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
35 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) GENERAL JOURNAL PAGE 93 DESCRIPTION Feb. 28 Supplies Expense Miscellaneous Expense Cash Issued Ck. No to reimburse the 5 6 petty cash fund Cash 111 8, Sales 411 8, Cash sales, February Rent Expense 613 2, Cash 111 2, Paid Global Rental Agency for monthly rent, Ck. No M. L. Langdon, Drawing 312 5, Cash 111 5, Owner withdrew cash for personal use, Ck. No GENERAL JOURNAL PAGE 94 DESCRIPTION Adjusting Entries 1 2 Feb. 28 Income Summary , (a) Merchandise Inventory , (b) 28 Merchandise Inventory , Income Summary , (c) 28 Salary Expense 611 2, Salaries Payable 230 2, (d) 28 Insurance Expense Prepaid Insurance (e) 28 Depreciation Expense, Equipment 618 1, Accumulated Depreciation, Equipment 123 1, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 659
36 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) DESCRIPTION GENERAL JOURNAL PAGE Closing Entries 1 2 Feb. 28 Sales , Purchases Returns and Allowances Purchases Discounts Income Summary , Income Summary , Sales Returns and Allowances Purchases , Freight In 514 2, Salary Expense , Payroll Tax Expense 612 1, Rent Expense 613 2, Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, Equipment 618 1, Miscellaneous Expense Income Summary 313 2, M. L. Langdon, Capital 311 2, M. L. Langdon, Capital 311 5, M. L. Langdon, Drawing 312 5, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
37 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) GENERAL LEDGER Cash NO. 111 Feb. 1 Balance 34, J89 16, , J , J89 10, , J89 9, , J90 9, , J90 2, , J90 1, , J90 2, , J91 4, , J91 7, , J , J91 4, , J91 12, , J92 2, , J92 1, , J92 1, , J , J93 8, , J93 2, , J93 5, , Petty Cash Fund NO. 112 Feb. 1 Balance Accounts Receivable NO. 113 Feb. 1 Balance 15, J89 12, , J89 10, , J91 15, , J91 4, , J91 17, , J , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 661
38 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Merchandise Inventory NO. 114 Feb. 1 Balance 52, Adj. J94 52, Adj. J94 45, , Prepaid Insurance NO. 118 Feb. 1 Balance 2, Adj. J , Equipment NO. 122 Feb. 1 Balance 9, Accumulated Depreciation, Equipment NO. 123 Feb. 1 Balance 5, Adj. J94 1, , Accounts Payable NO. 221 Feb. 1 Balance 39, J89 16, , J89 5, , J89 9, , J , J91 4, , J91 22, , J91 12, , J92 16, , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
39 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Employees' Income Tax Payable NO. 226 Feb. 1 Balance 1, J , J90 1, J , FICA Taxes Payable NO. 227 Feb. 1 Balance 1, J , J , J90 1, J , J , State Unemployment Tax Payable NO. 228 Feb. 1 Balance J J Federal Unemployment Tax Payable NO. 229 Feb. 1 Balance J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 663
40 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Salaries Payable 230 NO. Feb. 1 Balance Reversing J J90 4, , J90 4, J92 4, , J92 4, Adj. J94 2, , M. L. Langdon, Capital NO. 311 Feb. 1 Balance 66, Closing J95 2, , Closing J95 5, , M. L. Langdon, Drawing NO Feb. 28 J93 5, , Closing J95 5, Income Summary NO Feb. 28 Adj. J94 52, , Adj. J94 45, , Closing J95 73, , Closing J95 63, , Closing J95 2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
41 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Sales NO Feb. 1 J89 12, , J90 9, , J91 15, , J91 7, , J91 17, , J93 8, , Closing J95 72, Sales Returns and Allowances NO Feb. 24 J Closing J Purchases NO Feb. 5 J89 4, , J91 21, , J92 16, , Closing J92 42, Purchases Returns and Allowances NO Feb. 12 J Closing J Purchases Discounts NO Feb. 2 J J J Closing J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 665
42 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Freight In NO Feb. 5 J J91 1, , J92 1, , Closing J95 2, Salary Expense NO Feb. 1 Reversing J J90 5, , J92 5, , Adj. J94 2, , Closing J95 11, Payroll Tax Expense 612 NO Feb. 12 J J , Closing J95 1, Rent Expense NO Feb. 28 J93 2, , Closing J95 2, Utilities Expense 614 NO Feb. 5 J Closing J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
43 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Supplies Expense NO Feb. 19 J J Closing J Insurance Expense NO Feb. 28 Adj. J Closing J Depreciation Expense, Equipment NO Feb. 28 Adj. J94 1, , Closing J95 1, Miscellaneous Expense NO Feb. 28 J Closing J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 667
44 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) S RECEIVABLE LEDGER Fashion Decor 642 Guthrie St. Dallas, TX NAME ADDRESS Feb. 1 Balance 4, J91 4, J91 17, , J , NAME ADDRESS Hotel Beritz 4600 Beaumont Drive Dallas, TX Feb. 1 J89 12, , NAME ADDRESS Jason and Waldon 1420 Favela Road Dallas, TX Feb. 1 Balance 10, J89 10, J91 15, , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
45 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) NAME ADDRESS Brandon, Inc. 400 W. Tatum St. Amarillo, TX S PAYABLE LEDGER 20-- Feb. 18 J91 22, , NAME ADDRESS Kingston Fabrics 1464 Harding Drive Dallas, TX Feb. 1 Balance 16, J89 16, J92 16, , NAME ADDRESS Magnuson Textiles 620 W. Huber St. Corpus Christi, TX Feb. 1 Balance 9, J89 5, , J89 9, , J , J91 4, NAME ADDRESS Tyson Manufacturing Company 842 N. Howard Ave. Fort Worth, TX Feb. 1 Balance 12, J91 12, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 669
46 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Schedule of Accounts Receivable February 28, Fashion Decor Hotel Beritz Jason and Waldon Total Accounts Receivable $17, , , $45, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
47 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Schedule of Accounts Payable February 28, Brandon, Inc. Kingston Fabrics Total Accounts Payable $22, , $39, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 671
48 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Work Sheet For Month Ended February 28, TRIAL 1 Cash 13, Petty Cash Fund Accounts Receivable 45, Merchandise Inventory 52, Prepaid Insurance 2, Equipment 9, Accumulated Depreciation, Equipment 5, Accounts Payable 39, Employees' Income Tax Payable 1, FICA Taxes Payable 1, State Unemployment Tax Payable Federal Unemployment Tax Payable M. L. Langdon, Capital 66, M. L. Langdon, Drawing 5, Sales 72, Sales Returns and Allowances Purchases 42, Purchases Returns and Allowances Purchases Discounts Freight In 2, Salary Expense 9, Payroll Tax Expense 1, Rent Expense 2, Utilities Expense Supplies Expense Miscellaneous Expense , , Income Summary 29 Salaries Payable 30 Insurance Expense 31 Depreciation Expense, Equipment Net Income NAME Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
49 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) ADJUSTMENTS INCOME STATEMENT SHEET 13, , (b) 45, (a) 52, , (d) , , (e) 1, , , , , , , , , , (c) 2, , , , (a) 52, (b) 45, , , (c) 2, , (d) (e) 1, , , , , , , , , , , , , , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 673
50 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Income Statement For Month Ended February 28, Revenue from Sales: Sales $72, Less Sales Returns and Allowances Net Sales $72, Cost of Goods Sold: Merchandise Inventory, Feb. 1, 20-- $52, Purchases $42, Less: Purchases Returns and Allowances $ Purchases Discounts , Net Purchases $41, Add Freight In 2, Delivered Cost of Purchases 44, Cost of Goods Available for Sale $96, Less Merchandise Inventory, Feb. 28, , Cost of Goods Sold 51, Gross Profit $20, Operating Expenses: Salary Expense $11, Payroll Tax Expense 1, Rent Expense 2, Utilities Expense Supplies Expense Insurance Expense Depreciation Expense, Equipment 1, Miscellaneous Expense Total Operating Expenses 18, Net Income $ 2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
51 COMPREHENSIVE REVIEW PROBLEM (General Journal) (continued) Fabulous Furnishings Statement of Owner's Equity For Month Ended February 28, M. L. Langdon, Capital, February 1, 20-- $66, Net Income for February $2, Less Withdrawals for February 5, Decrease in Capital 2, M. L. Langdon, Capital, February 28, 20-- $63, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 675
Accumulated Depreciation Equipment
Chapter 4 Completing the Accounting Cycle > DO IT! Worksheet Balance sheet: Extend assets to debit column. Extend liabilities to credit column. Extend contra assets to credit column. Extend drawings account
More informationChapter 5 Accounting for Merchandising Operations
Chapter 5 Accounting for Merchandising Operations Purchase Transactions Purchaser records goods at cost. When goods are returned, purchaser reduces Inventory. On September 5, De La Hoya Company buys merchandise
More informationThe Measurement of the Business Income. 1 by recording revenues when earned and expenses when incurred. 2 by adjusting accounts
Recap from Week 3 The Measurement of the Business Income The primary objective of accounting is measuring the net income of the businesses according to the generally accepted accounting principles. Net
More informationThe Statement of Cash Flows Direct Method
23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income
More informationAccounting II Second Semester Final
Name: Class: Date: Accounting II Second Semester Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is the difference between:
More informationVol. 1, Chapter 3 - Accounting Adjustments
Vol. 1, Chapter 3 - Accounting Adjustments Problem 1 1. ($20,000 2,000) 48 = $375 per month 2. Jan. 31 Depreciation Expense $375 Accumulated Depreciation Van $375 To record depreciation expense for January
More informationPROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)
COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL
More informationPART A: TRUE/FALSE (1 point each):
CHABOT COLLEGE General Accounting (BUS-7) Dmitriy Kalyagin PART A: TRUE/FALSE (1 point each): EXAM #4 (Chapters 10, 12, 13) 1. Employees who are exempt from the FLSA are entitled for overtime pay for hours
More informationLearning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.
0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting
More informationACCOUNTING 105 CONCEPTS REVIEW
ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important
More informationChapter 13 Financial Statements and Closing Procedures
Chapter 13 - Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures TEACHING OBJECTIVES 13-1) Prepare a classified income statement from the worksheet. 13-2)
More informationAccount Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.
Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define
More information7 Accounting for Sales and Accounts Receivable
7-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 1: Merchandise Sales Section Objectives 1. Record credit sales in
More informationb. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played.
CHAPTER FOUR SE4-2 Revenue recognition a. Recognize revenue from car sales for 12,000. Notes receivable $12,000 Sales revenue $12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize
More informationThe worksheet for Hancock Company shows the following in the financial statement
Chapter 4 Do it! Susan Elbe is preparing a worksheet. Explain to Susan how she should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Cash Accumulated
More informationEXERCISES. Does not normally require adjustment. Normally requires adjustment (AE).
EXERCISES Ex. 3 1 1. Prepaid expense 2. Accrued revenue 3. Unearned revenue 4. Accrued expense 5. Unearned revenue 6. Prepaid expense 7. Accrued expense 8. Accrued expense Ex. 3 2 Account Accounts Receivable...
More informationStudy Guide - Final Exam Accounting I
Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger
More informationSelf-test Comprehensive Problems II 综 合 自 测 题 II
Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制
More informationCentury 21 Accounting, 8e General Journal Chapter Outlines
Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
More informationHow To Balance Sheet
Page 1 of 6 Balance Sheet Accounts The Chart of Accounts is normally arranged or grouped by the Major Types of Accounts. The Balance Sheet Accounts (Assets, Liabilities, & Equity) are presented first,
More informationAccounting Cycle. Matching Principle
CHAPTER 3 Accounting Cycle Analyze and record the transactions Post the transactions and prepare trial balance Adjust the accounts and prepare trial balance Prepare the financial statements Close the accounts
More informationCHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES
CHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES Acquiring Merchandise for Sale Purchases (pp. 214-16) Purchase Discounts When a company takes advantage of a purchase discount, it reduces
More informationChart of Accounts. Chart of Accounts
Chart of Accounts A company s Chart of Accounts is a list of all Asset, Liability, Equity, Revenue, and Expense accounts included in the company s General Ledger. The number of accounts included in the
More informationTRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:
TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: $350,000
More informationCENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives
CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
More informationChapter. Skyline College 7-1
Chapter 7 Skyline College 7-1 The three types of business operations are: A service business is a business that sells services. A merchandising business is a business that sells goods purchased for resale.
More informationFinancial Accounting. (Exam)
Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials Take a quick tour by visiting wwwaccountingcoachcom/quicktour Table of Contents (click to
More informationChapter 4. Completing the accounting cycle
1 Chapter 4 Completing the accounting cycle 2 Learning objectives 1. Prepare an accounting worksheet and describe its purpose 2. Prepare a classified balance sheet and explain the major headings 3. Explain
More informationAccounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
More informationBasic Accounting Principles
Basic Accounting Principles Basic Accounting Model The basic accounting model represents the relationship between assets (what the company owns), liabilities (what the company owes), and owner s equity
More informationGold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.
Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December
More informationCHAPTER 3. BE3-2 Advertising. Dec. 31 Advertising Supplies Expense 7200 Advertising Supplies 7200 to adjust. BE3-3 Bere Co.
CHAPTER 3 BE3-2 Advertising Advertising Supplies Supplies Expense 8700 7200 7200 1500 7200 Dec. Advertising Supplies Expense 7200 Advertising Supplies 7200 BE3-3 Bere Co. Prepaid Insurance Insurance Expense
More informationIn the event of a tie, the score on the last ten questions will be used as a tie-breaker.
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
More informationThe General Journal and the General Ledger
4-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 The General Journal and the General Ledger Section 1: The General Journal Section Objectives 1. Record transactions in
More informationSOLUTIONS. Learning Goal 15
Learning Goal 15: Prepare a Classified S1 Learning Goal 15 Multiple Choice 1. b 2. c 3. a 4. b 5. d 6. a 7. c Their importance in paying current liabilities is the main reason current assets are shown
More informationClassifying assets, liabilities, and owner s equity
Drill 1-D1 Classifying assets, liabilities, and owner s equity Classify each item listed below as an asset, liability, or owner s equity by placing a check mark in the Asset, Liability, or Owner s Equity
More informationLearn Accounting Understand Business: Course Review Answers
Learn Accounting Understand Business: Course Review Answers 1. What type of accounting measures the activity of the company by looking at economic events regardless of when cash transactions occur? A.
More informationBookkeeping Proficiency
Bookkeeping Proficiency (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour. Table of Contents (click
More informationACCOUNTING 1 (ACN101- M)
1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions
More informationChapter 1. Introduction to Accounting and Business
1 Chapter 1 Introduction to Accounting and Business Learning Objective 1 Describe the nature of a business, the role of accounting, and ethics in business. Nature of Business and Accounting A business
More informationMerchandising Operations
5 Merchandising Operations WHAT YOU PROBABLY ALREADY KNOW You want to order a pair of pants from a mail-order catalog. The price listed in the catalog is $50. There is a 10% off coupon in the catalog for
More informationFinancial Statements Tutorial
Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance
More informationSupplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET
Supplement to CHAPTER 3 CLOSING ENTRIES AND THE WORK SHEET Answers to Review Questions 1. No, the work sheet cannot be used as a substitute for the financial statements. It is a tool used in preparing
More informationBookkeeping Quiz = + For each account listed below, indicate whether it normally has a debit or a credit balance: III.
ookkeeping Quiz I. Match the account titles with the appropriate financial statement classification: A Current Assets Sales Property, Plant and Equipment Cash in Checking C Other Assets Accumulated Depreciation
More informationANSWERS TO QUESTIONS FOR GROUP LEARNING
Accounting for a 5 Merchandising Business ANSWERS TO QUESTIONS FOR GROUP LEARNING Q5-1 A merchandising business has a major revenue reduction called cost of goods sold. The computation of cost of goods
More informationCHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET
CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET Chapter Opener: Thinking Critically Students may assess that an unexpected decline in sales would mean surplus inventory which would have to be reduced
More informationPurchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities
Chapter 8 Purchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved. What
More informationSOLUTIONS. Learning Goal 16
Learning Goal 16: Prepare Closing Entries S1 Learning Goal 16 Multiple Choice 1. d 2. a 3. b 4. d Because drawing is closed directly into the capital account, not into income summary. 5. c 6. b This a
More informationChapter 6 Statement of Cash Flows
Chapter 6 Statement of Cash Flows The Statement of Cash Flows describes the cash inflows and outflows for the firm based upon three categories of activities. Operating Activities: Generally include transactions
More informationSample Test for entrance into Acct 3110 and Acct 3310
Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance
More informationSummary of Financial Report for the FY ending March 2015 (Non-Consolidated)
Summary of Financial Report for the FY ending March 2015 (Non-Consolidated) April 30, 2015 Listed Company Name: Japan Tissue Engineering Co., Ltd. Listed Securities Exchange: JQ Stock Code: 7774 URL http://www.jpte.co.jp
More information(a) (i) Marking Scheme: 1 mark for definition and 1 mark for example.
T A S M A N I A N Accounting C E R T I F I C A T E Subject Code ACC5C O F E D U C A T I O N Question 1 T A S M A N I A N Q U A L I F I C A T I O N S A U T H O R I T Y (a) (i) Marking Scheme: 1 mark for
More informationCHAPTER 4. Adjusting the accounts and preparing financial statements CONTENTS
CHAPTER 4 Adjusting the accounts and preparing financial statements CONTENTS Demonstration problem 4.1 Adjusting entries and corrections 4.2 Adjusting centries and effect on financial statements 4.3 Adjusting
More informationFinancial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS
Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS Name: Selected information from the financial statements of Miller Company for the year ended December 31, 2012, appears below: 2012 Current
More informationCHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS
CHAPTER 16 Non-current assets: Revaluation, disposal and other aspects CONTENTS 16.1 Non-current asset disposals 16.2 Revaluation and disposal 16.3 Intangibles and natural resources 16.4 Goodwill and discount
More informationChapter Review Problems
Chapter Review Problems Unit 17.1 Income statements 1. When revenues exceed expenses, is the result (a) net income or (b) net loss? (a) net income 2. Do income statements reflect profits of a business
More informationACCT 652 Accounting. Review of last week. Review of last time (2) 1/25/16. Week 3 Merchandisers and special journals
ACCT 652 Accounting Week 3 Merchandisers and special journals Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights of
More informationDo it! Chapter 11. Current Liabilities
Chapter 11 Do it! You and several classmates are studying for the next accounting examination. They ask you to answer the following questions. 1. If cash is borrowed on a $50,000, 6-month, 12% note on
More informationVol. 1, Chapter 5 The Balance Sheet
Vol. 1, Chapter 5 The Balance Sheet Problem 1: Solution Assets Construction in progress Cash advance to affiliated co. Petty cash Trade receivables Building Cash surrender value of life insurance Notes
More informationAssessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176)
NCEA Level 2 Accounting (91176) 2013 Page 1 of 7 Assessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Part A Question One
More information6. Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation.
1. A company purchased land for $72,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of a new building could start.
More informationUSING QUICKBOOKS TO RECORD RESTRICTED TRANSACTIONS
USING QUICKBOOKS TO RECORD RESTRICTED TRANSACTIONS Recording Pledges Pledges are unconditional promises that a donor gives to your organization, which could include a promise for money over a period of
More informationSTATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS
C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,
More informationChapter 5. Accounting for merchandising operations. Appendix 5A: Periodic inventory system
1 Chapter 5 Accounting for merchandising operations Appendix 5A: Periodic inventory system 2 Learning objectives 1. Record purchase and sales transactions under the periodic inventory system 2. Prepare
More informationHow to Do Accounts Payroll - A Quick Guide
Accounting and Bookkeeping II text with student working papers and solutions. How To Do Accounting II Buy The Complete Version of This Book at Booklocker.com: http://www.booklocker.com/p/books/4728.html?s=pdf
More informationObjective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue
Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common
More informationAssignment 6: Adjusting Journal Entries and
Name: Due Date: December 12, 2011 Score: out of a possible 47 Course value: 7.5% Assignment 6: Adjusting Journal Entries and Worksheets A series of transactions are presented and their journal entries
More informationFinancial Statement Preparation Webinar. Presented by Nick Chapman VEI Program Coordinator New York City
Financial Statement Preparation Webinar Presented by Nick Chapman VEI Program Coordinator New York City 122 Amsterdam Ave. New York, NY 10023 Phone: 212-769-2710 www.veinternational.org Objectives: Review
More informationFinancial Plan. A) Estimated One-Time Financial Requirements. Part One
Financial Plan The Financial Plan is perhaps one of the most important components of your Business Plan (see Business Plan Handout). Not only is it essential if you are seeking external financing it is
More informationFor more course tutorials visit www.uoptutorial.com
ACC 290 Final Exam Guide (New) Click Here to Buy the Tutorial http://www.uoptutorial.com/index.php?route=product/ product&path=737&product_id=11101 For more course tutorials visit www.uoptutorial.com ACC
More informationJackson Company recorded the following cash transactions for the year:
ACC 290 Final Exam Guide (New) Click Here to Buy the Tutorial http://www.uoptutorial.com/index.php?route=product/product&path=7 37&product_id=11101 For more course tutorials visit www.uoptutorial.com ACC
More informationDETAILS Chapter 11a: How to Prepare the Worksheet The Big Picture
2008 by Mark Krilanovich Mark Krilanovich November 22, 2008 ACCT 110 DETAILS Chapter 11a: How to Prepare the Worksheet The Big Picture 1. Chapters 9 and 10 introduced ten new accounts (see p. Ch. 9b and
More informationChapter 6 Homework BRIEF EXERCISE 6-6
Chapter 6 Homework BRIEF EXERCISE 6-6 Dec. 31 Sales... 630,000 Merchandise Inventory (December 31)... 90,000 Purchase Returns and Allowances... 11,000 Capital... 731,000 Dec. 31 Capital... 476,000 Merchandise
More informationUIL ACCOUNTING REGIONAL 2011-R
GROUP 1 UIL ACCOUNTING REGIONAL 2011-R A--Current Asset--Assets that are either used up or converted to cash during the normal operating cycle of the business, usually 1 year. B--Plant Asset--Long-lived
More informationFinancial Statement Consolidation
Financial Statement Consolidation We will consolidate the previously completed worksheets in this financial plan. In order to complete this section of the plan, you must have already completed all of the
More informationa. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000.
注 意 1. 本 試 題 卷 共 50 題, 總 分 100 分 第 01-15 題, 每 題 1.75 分, 合 計 26.25 分 ; 第 16-35 題, 每 題 2 分, 合 計 40 分 ; 第 36-50 題, 每 題 2.25 分, 合 計 33.75 答 錯 不 倒 扣 2. 請 將 答 案 按 試 題 題 號, 依 序 填 入 答 案 卡 1.FastForward had cash
More informationACC 211/212: Double Entry Logs
ACC 211/212: Double Entry Logs Journal Entries: o Credits are always indented (account name and value). o The sum of debits will always equal the sum of credits. o The month name is required only for the
More informationAuthored for ENMU Tutoring Services. By Jessica Huff
By Jessica Huff The standard accounting equation is Assets=Liabilities + Stockholders Equity. Depending on which item someone is looking at will determine what the normal balance is. The normal balance
More informationBUS312A/612A Financial Reporting I. Homework 9.10.2014 & 9.15.2014 The Accounting Cycle Review Chapter 3
BUS312A/612A Financial Reporting I Homework 9.10.2014 & 9.15.2014 The Accounting Cycle Review Chapter 3 E3-1 (Transaction Analysis-Service Company) During the first month of operations of her business
More informationBasic Accounting. Supplement for Using Simply Accounting Version 8.0 for Windows by. M. Purbhoo and D. Purbhoo
Basic Accounting Supplement for Using Simply Accounting Version 8.0 for Windows by M. Purbhoo and D. Purbhoo Basic Accounting Contents: Accounting Theory 3 Basic Accounting 3 Balance Sheet 3 Income Statement
More informationAccounting Skills Assessment Practice Exam Page 1 of 10
NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +
More informationAccounting Self Study Guide for Staff of Micro Finance Institutions
Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 5 Summarizing Changes in Financial Position OBJECTIVES The purpose of this lesson is to show how to summarize the transactions
More informationExam 1 chapters 1-4 Needles 10ed
Exam 1 chapters 1-4 Needles 10ed Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following is the most appropriate definition of accounting?
More informationAccounting, CPT Chapter 6 CA PRATHAP SS
Accounting, CPT Chapter 6 CA PRATHAP SS INTRODUCTION Preparation of Final Accounts is the last phase of the Accounting Process. INTRODUCTION The process of accounting starts from Transaction then entered
More informationNCEA Level 2 Accounting (91176) 2012 page 1 of 8. Sales 990 000 P. Cost of goods sold 586 000 P. Gross profit 404 000 S* Rent (received) 24 000 V
Assessment Schedule 2012 NCEA Level 2 Accounting (91176) 2012 page 1 of 8 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Statement Question
More informationILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM
ILLUSTRATION 3-1 DOUBLE-ENTRY ACCOUNTING SYSTEM ASSETS Increase Decrease + DOUBLE-ENTRY ACCOUNTING REAL (PERMANENT) ACCOUNTS = LIABILITIES + Rules of Thumb + If the "normal balance" for an account is a
More informationBasic Business Plan Outline
Basic Business Plan Outline A business plan needs to be a well thought out, honest, appraisal of the business and opportunity. This outline is meant to be used for your road map. It should be a living
More informationShe Wears A Bullet-Proof Vest:
She Wears A Bullet-Proof Vest: Detailed Solving Steps for the 2014 Regional Accounting Exam s Work Sheet Problems Prepared by: LaVerne Funderburk, CPA UIL Accounting State Contest Director 2014 UIL Capital
More informationIn the event of a tie, the score on the last ten questions will be used as a tie-breaker.
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING I 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
More informationBusiness Start Up Basics III
Business Start Up Basics III Intro to Accounting Presented by: Suzie Dills SBDC Business Consultant Agenda Key Objectives of the Course Brief History & Definition of Accounting General Ledger Double Entry
More informationACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1
ACCT 652 Accounting Week 4 Special Journals, Cash, and Internal Controls Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights
More informationTrading Profit and Loss Account
Trading Profit and Loss Account Trading Account The trading account shows the income from sales and the direct costs of making those sales. It includes the balance of stocks at the start and end of the
More informationCompleting the Accounting Cycle
C H A P T E R 4 Completing the Accounting Cycle Financial Accounting 14e Warren Reeve Duchac human/istock/360/getty Images Flow of Accounting Information (slide 1 of 5) End-of-Period Spreadsheet (Work
More informationChapter 5 Merchandising Operations
Chapter 5 Merchandising Operations Financial Statements of a Service Company and a Merchandiser: - Service Companies: Revenues earned through performance of services. Examples: Dentists, Accounting Firms,
More informationACCT1115. Review Package - Midterm SOLUTION Fall 2013
ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase
More informationCHAE Review. Capital Leases & Forms of Business
CHAE Review Financial Statements, Capital Leases & Forms of Business This is a complete review of the two volume text book, Certified Hospitality Accountant Executive Study Guide, as published by The Educational
More informationCHAPTER 6. Accounting for retailing CONTENTS
CHAPTER 6 Accounting for retailing CONTENTS 6.1 Journal entries periodic inventory system 6.2 Journal entries involving discounts, closing entries and statements of financial performance both perpetual
More information