9/23/2012

Chapter 4 COMPLETING THE ACCOUNTING CYCLE

Closing entries
After all revenue & expense have been closed at the end of the fiscal year + Income Summary has a debit of $ 521,900 and a credit of $ 729,350

Worksheet and its benefits

From trial balance to adjusted trial balance

+ Brenda, Capital has a credit balance of $ 405,700 + Brenda, Drawings has a balance of $ 40,000

Closing Entries

A, Journalise the entries required to complete the closing of the accounts

Financial Statements

B, Determine the amount of Brenda, Capital at the end of the period

The data needed to determine year-end adjustments are as follows:

Habor RealtyTRIAL BALANCE

December 31, N Account Title Cash Supplies Accounts Receivable Prepaid Insurance Office Equipment Acc Depreciation Account Payable Unearned Fees T.Roderick, Capital T.Roderick, Drawing Fee Earned Wage Expense Rent Expense Utilities Expense Miscellaneous Expense Totals Trial Balance Dr. Cr. 3,425 7,000 1,270 620 51,650 9,700 925 1,250 29,000 5,200 59,125 22,415 4,200 2,715 1,505 100,000 100,000

A, Supplies on hand at 31, Dec are $ 380 B, Insurance Premiums expired during the year are $315 C, Depreciation of equipment during the year is $ 4,950 D, Wages accrued but not paid at 31, Dec are $440 E. Accrued fees earned but not recorded are $1,000 F. Unearned fees became Earned $ 750

1, Enter the trial balance on a ten-column worksheet and complete the worksheet 2, Prepare Financial Statements 3, Journalize the closing entries

CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE

Crazy Young TRIAL BALANCE December 31, N Account Title (000 ommited) Cash at bank Trade debtors Prepaid insurance Equipment Acc Dept Equipment Trade creditors Charles Metlock, Capital Charles Metlock, Drawings Service Revenue Wages Expense Electricity Expense Sundry Expense Totals Trial Balance Dr. Cr. $ 10 8 2 20 $8 4 27 5 32 17 6 3 71

CHAPTER 4 COMPLETING THE ACCOUNTING CYCLE

Crazy Young TRIAL BALANCE December 31, N

The following unadjusted trial balance was taken from the ledger of Matlock Agencies on 31, Dec, N

71

Account Title (000 ommited) Cash at bank Trade debtors Prepaid insurance Equipment Acc Dept Equipment Trade creditors Charles Metlock, Capital Charles Metlock, Drawings Service Revenue Wages Expense Electricity Expense Sundry Expense Totals

Trial Balance Dr. Cr. $ 10 8 2 20 $8 4 27 5 32 17 6 3 71

A- Prepare a 10-column worksheet using the following additional information on 31, Dec, N (1) Expired insurance $1 (2) Accrued wages, $2 (3) Depreciation on Equipt 4$
B. Prepare Income Statement, Balance Sheet, Owners Equity Statement

71

C. Recording the adjusting and closing entries in the General Journal

9/23/2012

A partially completed work sheet is shown below. The unadjusted trial balance columns are complete. Complete the adjustments, adjusted trial balance.

CHAPTER 5
Accounting for Merchandising Operations

CHAPTER 5 - MERCHANDISING

Prepare the journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system

1, Mar,5: 1. Merchandising Operation 2. Purchases for Merchandising 3. Sales for Merchandising 4. Financial Statements Purchased 1,000 units of product at a cost of $12 per unit. Terms of the sale are 2/10, n/60, the invoice is dated Mar 5 2. Mar, 7: Returned 50 defective units from the Mar 5 purchase and received full credit 3.Mar 15: Paid the amount due from the Mar 5 purchase less return on Mar 7

Purchased 1,000 units at a cost of $12 per unit.

Paid the amount due from the Mar 5 purchase less return on Mar 7 + Dr. Account Payable 11,400

Terms of the sale are 2/10, n/60, the invoice is dated Mar 5

+ Dr. Merchandise Inventory

12,000

Cr. Account Payable

12,000

Cr. Cash

11,400

Returned 50 defective units from the Mar 5 purchase and received full credit

How about the seller?

+ Dr. Account Payable

600 600

Cr. Merchandise Inventory

9/23/2012

2
Determine the amount to be paid in full settlement of each of the following invoices assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period

Prepare the journal entries (perpetual inventory )

1, Purchased merchandise from Johns Company under the following

terms: $ 5,900 price, invoice dated April,2, credit terms of 2/15, n/60 and FOB shipping point

2, Paid $ 330 for shipping charges on April,2 purchase 3, Returned to Johns Company unacceptable merchandise that had
an invoice price of $ 900

Merchandise A, $ 4,000 B, 1,500 C, 9,500 D, 2,500 E, 5,000

Transportation paid by seller $ 50 75 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, n/30 FOB shipping point, 1/10, n/30 FOB destination, 2/10. n/30

Return and Allowance $ 1,200 700 400 600 -

4, Purchased merchandise from William Corp. under the following

terms $12,250 price, invoice date April 18, credit terms of 2/10,n/60, FOB destination

5, After negotiations, received from William a $ 3,250 allowance on

Apr 18 purchase

6, Sent check to William paying for the April 18 purchase, net pf the
discount and allowance

4
On Mar 31,2008, Merchandise Inventory was 27,941. Supplementary records of merchandising activities for the year ended March 31, 2009 reveal the following itemized cost:
Invoice cost of merchandise purchases Purchase discounts received Purchase return & allowances Costs of transportation-in $ 101,430 2,130 4,868 3,900

2, Calculate total cost of merchandise purchased for the year

Fords LaundryTRIAL BALANCE March 31, 2009 Trial Balance Account Title Dr. Cr. Merchandise Inventory 34,500 Other (non-inv asset) 128,000 Account Payables 39,847 Frisco, Capital 115,110 Frisco, Withdrawal 8,000 Sales 235,980 Sales discount 3,610 Sales returns & Allowance 15,574 Cost of Good Sold 91,673 Sales Salaries Expense 32,329 Rent Expense-selling space 11,091 Store Supplies Expense 2,831 Advertising Expense 20,058 Office salaries Expense 29,497 Rent expense-Office space 2,831 Office supplies Expense 943 Totals 390,937 390,937

1, Calculate net sales? 2, Calculate total cost of merchandise purchased for the year 3, Prepare Multi-step Income statement that
includes separate categories for selling EX and general and administrative EX?

4, Single-step IS

that includes these EX categoriesL COGS,selling EX, general & admin EX?

CHAPTER

1
Jan 1 Jan 12 Jan 19 Jan 20

Chapter 6 - INVENTORY

Part 1: Overview Part 2: Inventory Counting System Part 3: Inventory Valuation Part 4: Accounting for Inventory

A company sells a climbing kit and uses the perpetual inventory system to account for its merchandise. The beginning balance of the inventory and its transactions during January were as follows:
Beginning balance of 18 units at $ 13 each Purchased 30 units at $ 14 each Sold 24 units at $ 30 selling price each Purchased 24 units at $ 17 each

Jan 27

Sold 27 units at $ 30 selling price each

INVENTORY

Calculate the cost of ending inventory using inventory method: a. LIFO method. b. FIFO method. c. Weighted-average method.

9/23/2012

What is the cost of the ending inventory?

What is the cost of the ending inventory?

1, A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, it purchased 10 units at $13 per unit. On August 12 it purchased 20 units at $14 per unit. On August 15, it sold 30 units for $20 each. Using the FIFO periodic inventory method, what is the COGS? what is the value of the inventory at August 15 after the sale (Ending inventories)?

2, A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

Prepare journal entries for the transactions.

Prepare journal entries for transactions.

ME company sold 200 units of its goods for $5 each. The COGS is $3 each. i) 10 days later, customer returned 50 units of goods ii) 10 days later, customer wanted to return 50 defective units of goods, the company agreed to reduce price to $3, so that the customer accepted the goods and not returned.

a) Purchase 20 sets of TV Sony, $200/set, paid in cash

b) Sell on credit 10 sets of TV for company A at the selling price

of $300/set. c) Sell 3 sets of TV at price of $350/set, already received cash. d) Sell on credit 4 cars with price per car is $ 40,000, total costs to import and put in sale these cars are $20,000 per car.