Professional Documents
Culture Documents
1-Mar Purchased 20 handbags at $50 each from Purse Distributors with terms 2/10, n/30.
Accounts
inventory
accounts payable
Debit
Credit
$ 1,000
$ 1,000
1-Mar Paid $100 for freight of purses bought from Purse Distributors.
Accounts
inventory
cash
Debit
$
100
Credit
$
100
Debit
$
100
Credit
$
100
7-Mar Sold 4 purses for $80 each for cash. Purses had a cost of $50 each.
Accounts
cash
Debit
$
320
sales revenue
Accounts
cost of goods sold
inventory
Credit
$
Debit
$
200
320
Credit
$
200
Debit
4x8=320
Credit
4x50=200
10-Mar Sold 8 purses to Fashions, Etc. for $80 each on account with terms 1/10, n/30. Purses had a
cost of $50 each.
Accounts
accts recv
sales revenue
<To record the sale>
Debit
$
640
Credit
$
1000-100=900
.02x900=18
900-28=882
640
Accounts
Debit
Credit
cost of goods sold
$
400
inventory
$
400
<To record the costs related to the sale>
8x80=640
8x50=400
11-Mar Granted Fashions, Etc a $20 allowance due to purses not meeting customer expectations.
Accounts
Debit
sales returns and allowances$
20
accts recv
Credit
$
20
Debit
$ 613.80
$
6.20
Credit
640-20=620
620x.01=6.20
620-6.20=613.80
$ 620.00
Based on the above transactions, determine the Gross Profit for the month of March
for Perfect Purses.
Sales
Less: Sales Returns and Allowances
Less: Sales Discounts
Net Sales
960.00
20.00
6.20
933.80
600.00
333.80
960-20-6.20=933.80
Date
Beg. Balance
2/15 purchase
9/1 purchase
Sales during the year
Units
50
60
70
Cost /Price
$12
$15
$17
100
$25
Total Cost
$600
$900
$1,190
2500
180 units
2690= 600+900+1190=cogs
600+750=1350 cogs
2690-1350=1340 end inventory
Determine Ending Inventory and Cost of Goods Sold assuming the LIFO
method is used.
Assuming the FIFO method is used, what is the gross profit for the
year?
COGS 1390
2500-1390= 1150 gross profit
Expenses
Cost of Goods Sold
General and Administration Expenses
Salaries Expense
Selling Expenses
Depreciation Expense
Income Tax Expense
Bad debt expense
Interest Expense
Freight Out
Total Expenses
Net Income
1,000,000
10,000
5,000
1,015,000
600,000
100,000
70,000
40,000
30,000
25,000
13,000
12,000
5,000
895,000
$
120,000
Fleur de Lis Home Decorators sells interior design services on account. They started the year with
$15,000 in Accounts Receivable and an Allowance for Doubtful Accounts of $500.
Prepare journal entries for the following transactions for Fleur de Lis.
Accounts
accts recv
sales revenue
Debit
Credit
$ 60,000
$ 60,000
Accounts
cash
accts recv
Debit
Credit
$ 50,000
$ 50,000
Specific customer accounts totaling $800 were written off during the year.
Accounts
Debit
Credit
allowance for doubtful accts $
800
accts recv
$
800
Post the entries in the Accounts Receivable and Allowance for Doubtful Accounts T's provided
below.
Allowance for
Doubtful Accounts
Accounts Receivable
Beg
15,000
60,000
50,000
800
24,200
500 Beg
800
300
Assuming that Fleur de Lis anticipates that 5% of Accounts Receivable will prove uncollectible,
what is the necessary adjusting entry to make?
Accounts
Debit
Credit
bad debt expnse
$ 1,510
allowance for doubtful
$ 1,510
24200x.05=1210
1210+300=1510
Show the balance sheet presentation of Accounts Receivable on the year end balance sheet?
accts recv
24200
1210
22900
1210+300=1510
On September 1, 2012 Tiger Company borrowed money from First State Bank by signing a $10,000,
8%, 6 month note. First State Bank prepares annual financial statements on December 31.
Complete the necessary journal entries for First State Bank .
Entries for First State Bank (Lender)
9/1/2012
Accounts
notes recv
cash
Debit
Credit
$ 10,000
$ 10,000
12/31/2012
Accounts
intererst recv
interest revenue
Debit
Credit
$
267
$
267
10000x.08x4/12=267
Accounts
cash
notes recv
intterest recv
interest revenue
Debit
Credit
$ 10,400
$ 10,000
$
267
$
133
10000x.08x6/12=10400
Justice Company
Bank Reconciliation
June 30
Bank Balance
Add:
16233
deposits in transit
2500
Less:
outstanding checks
1277
Book Balance
Add:
Less:
$17,456
17500
interest earned
correction check
NSF Check
bank fee
20
36
75
25
$17,456
Debit
Credit
$20
$20
Cash
accts payable
$36
accts Recv
cash
$75
Misc Exp
cash
$25
$36
$75
$25