ACCT 100 : Introduction to Financial Accounting
San Francisco State University (SFSU)
Financial Accounting
Jerry J. Weygandt
Decision Making Across The Organization
Comprehensive Problem 7 (CP7) On December 1, 2010, Moreland Company had the following account balances.
AND SO ON
Instructions
(a) Journalize the December transactions. (Assume a perpetual inventory system.)
(b) Enter the December 1 balances in the ledger T accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Insurance Expense, Salaries Expense, Sales, Sales Discounts, Income Tax Payable, and Income Tax Expense.
(c) The statement from Lyon County Bank on December 31 showed a balance of $22,164. A comparison of the bank statement with the cash account revealed the following facts.
1. The bank collected a note receivable of $2,500 for Moreland Company on December 15.
2. The December 31 receipts of $2,736 were not included in the bank deposits for December. The company deposited these receipts in a night deposit vault on December 31.
3. Checks outstanding on December 31 totaled $1,210.
4. On December 31 the bank statement showed a NSF charge of $800 for a check received by the company from C. Park, a customer, on account. Prepare a bank reconciliation as of December 31 based on the available information.
(Hint: The cash balance per books is $21,990. This can be proven by finding the balance in the Cash account from parts (a) and (b).)
(d) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data.
(e) Post the adjusting entries to the ledger T accounts.
(f) Prepare an adjusted trial balance.
(g) Prepare an income statement for December and a classified balance sheet at December 31.
Check: (f) Totals $89,425; (g) Net income $ 1,325; Total assets $72,550
Click here for the SOLUTION
Showing posts with label Comprehensive Problem. Show all posts
Showing posts with label Comprehensive Problem. Show all posts
Monday, August 9, 2010
Thursday, July 22, 2010
Comprehensive Problems: Williams Haka Bettner: Financial and Managerial Accounting
Utease Corporation: COMPREHENSIVE PROBLEM 6: Utease Corporation Utease Corporation Utease Corporation Utease Corporation Utease Corporation
Financial and Managerial Accounting
Williams Haka Bettner
COMPREHENSIVE PROBLEM 6 (CP6): Utease Corporation
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows:
AND SO ON
Click here for the SOLUTION
Williams Haka Bettner
COMPREHENSIVE PROBLEM 6 (CP6): Utease Corporation
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows:
AND SO ON
Click here for the SOLUTION
The Gilster Company: COMPREHENSIVE PROBLEM 5: The Gilster Company The Gilster Company The Gilster Company
Financial and Managerial Accounting
Williams Haka Bettner
COMPREHENSIVE PROBLEM 5 (CP5): The Gilster Company
The Gilster Company, a machine tooling firm, has several plants. One plant located in St. Falls, Minnesota, uses a job order costing system for its batch production processes.
AND SO ON
Click here for the SOLUTION
Williams Haka Bettner
COMPREHENSIVE PROBLEM 5 (CP5): The Gilster Company
The Gilster Company, a machine tooling firm, has several plants. One plant located in St. Falls, Minnesota, uses a job order costing system for its batch production processes.
AND SO ON
Click here for the SOLUTION
The Home Depot, Inc: COMPREHENSIVE PROBLEM 4 : The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc The Home Depot, Inc
Financial and Managerial Accounting
Williams Haka Bettner
COMPREHENSIVE PROBLEM 4 (CP4): The Home Depot, Inc
Click here for the SOLUTION
Instructions: Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.
a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?
b. Home Depot combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings fund?
c. Over the three years presented, have the company's annual net cash flows been positive or negative from 1) operating activities, 2) investing activities, and 3) financing activities? Has the company's cash balance increased or decreased during each of these three years?
Part II
Home Depot wants to make credit purchases from your company, with payment due in 60 days assuming you are a credit manager of a medium sized supplier.
a. read the first note to the financial statements, "Summary of Significant Accounting Policies". Compute the following for the fiscal years ending feb. 3, 2008, and jan. 28, 2007 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):
1. Current Ratio
2. Quick Ratio
3. Amount of Working Capital
4. Percentage change in working capital from the prior year
5. Percentage change in cash and cash equivalents from the prior year.
B. Based upon your analysis in part a, does teh company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain.
C. Other than the ability of Home Depot to pay for it's purchases, do you see any major considerations that should enter into your company's decision? Explain.
D. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot and write a memorandum explaining your decision.
Possible Credit Ratings:
A- Outstanding
B- Good
C- Marginal
D- Unacceptable
Part III
a. compute the following for the fiscal years ending Feb. 3, 2008 and jan. 28, 2007 (round percentages to the nearest tenth):
1. percentage change in net sales (relative to the prior year)
2. Percentage change in net earnings
3. Gross profit rate.
4. Net income as a percentage of sales.
5. Return on average total assets.
6. Return on average total equity.
B. Write a statement that describes your conclusion(s) concerning rends in Home Depot's profitability during the period covered in your analysis in part a above2009, following these guidelines:
AND SO ON
Click here for the SOLUTION
Williams Haka Bettner
COMPREHENSIVE PROBLEM 4 (CP4): The Home Depot, Inc
Click here for the SOLUTION
Instructions: Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.
a. How many years are covered in each of the primary comparative financial statements? Were all of these statements audited? Name the auditors. What were the auditors' conclusions concerning these statements?
b. Home Depot combines its statement of retained earnings with another financial statement. Where are details about changes in the amount of retained earnings fund?
c. Over the three years presented, have the company's annual net cash flows been positive or negative from 1) operating activities, 2) investing activities, and 3) financing activities? Has the company's cash balance increased or decreased during each of these three years?
Part II
Home Depot wants to make credit purchases from your company, with payment due in 60 days assuming you are a credit manager of a medium sized supplier.
a. read the first note to the financial statements, "Summary of Significant Accounting Policies". Compute the following for the fiscal years ending feb. 3, 2008, and jan. 28, 2007 (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):
1. Current Ratio
2. Quick Ratio
3. Amount of Working Capital
4. Percentage change in working capital from the prior year
5. Percentage change in cash and cash equivalents from the prior year.
B. Based upon your analysis in part a, does teh company's liquidity appear to have increased or decreased during the most recent fiscal year? Explain.
C. Other than the ability of Home Depot to pay for it's purchases, do you see any major considerations that should enter into your company's decision? Explain.
D. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to Home Depot and write a memorandum explaining your decision.
Possible Credit Ratings:
A- Outstanding
B- Good
C- Marginal
D- Unacceptable
Part III
a. compute the following for the fiscal years ending Feb. 3, 2008 and jan. 28, 2007 (round percentages to the nearest tenth):
1. percentage change in net sales (relative to the prior year)
2. Percentage change in net earnings
3. Gross profit rate.
4. Net income as a percentage of sales.
5. Return on average total assets.
6. Return on average total equity.
B. Write a statement that describes your conclusion(s) concerning rends in Home Depot's profitability during the period covered in your analysis in part a above2009, following these guidelines:
AND SO ON
Click here for the SOLUTION
Guitar Universe, Inc: COMPREHENSIVE PROBLEM 2: Guitar Universe, Inc
Financial and Managerial Accounting
Williams Haka Bettner
COMPREHENSIVE PROBLEM 2 (CP2): Guitar Universe, Inc
Guitar Universe, Inc., is a popular source of musical instruments for professional and amateur musicians. The company's accountants make necessary adjusting entries monthly, and they make all closing entries annually. Guitar Universe is growing rapidly and prides itself on having no long-term liabilities.
The company has provided the following trial balance dated December 31, 2009:
AND SO ON
Click here for the SOLUTION
Williams Haka Bettner
COMPREHENSIVE PROBLEM 2 (CP2): Guitar Universe, Inc
Guitar Universe, Inc., is a popular source of musical instruments for professional and amateur musicians. The company's accountants make necessary adjusting entries monthly, and they make all closing entries annually. Guitar Universe is growing rapidly and prides itself on having no long-term liabilities.
The company has provided the following trial balance dated December 31, 2009:
AND SO ON
Click here for the SOLUTION
McMinn Retail, Inc: COMPREHENSIVE PROBLEM 3: McMinn Retail, Inc
Financial and Managerial Accounting
Williams Haka Bettner
COMPREHENSIVE PROBLEM 3 (CP3): McMinn Retail, Inc
McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2009. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)
Instructions
1. Prepare an income statement for the year ended December 31, 2009, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.
2. Prepare a statement of retained earnings for the year ending December 31, 2009.
3. Prepare a statement of financial position (balance sheet) as of December 31, 2009, following these guidelines:
AND SO ON
Click here for the SOLUTION
Williams Haka Bettner
COMPREHENSIVE PROBLEM 3 (CP3): McMinn Retail, Inc
McMinn Retail, Inc., is a retailer that has engaged you to assist in the preparation of its financial statements at December 31, 2009. Following are the correct adjusted account balances, in alphabetical order, as of that date. Each balance is the “normal” balance for that account. (Hint: The “normal” balance is the same as the debit or credit side that increases the account.)
Instructions
1. Prepare an income statement for the year ended December 31, 2009, which includes amounts for gross profit, income before income taxes, and net income. List expenses (other than cost of goods sold and income tax expense) in order, from the largest to the smallest dollar balance. You may ignore earnings per share.
2. Prepare a statement of retained earnings for the year ending December 31, 2009.
3. Prepare a statement of financial position (balance sheet) as of December 31, 2009, following these guidelines:
AND SO ON
Click here for the SOLUTION
Tuesday, July 13, 2010
South Coast Boards Co: South Coast Boards Co: South Coast Boards Co: South Coast Boards Co: South Coast Boards Co: South Coast Boards Co
ACCOUNTING
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
Monday, July 12, 2010
South Coast Boards Co: South Coast Boards: Comprehensive Problem 2
ACCOUNTING
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
South Coast Boards: South Coast Boards: Comprehensive Problem 2
ACCOUNTING
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
Warren, Reeve and Duchac
Financial Accounting
Managerial Accounting
Carl Warren, James M. Reeve, Jonathan E. Duchac
Chapter 5, Chapter 6
Comprehensive Problem 2 (CP 2)
South Coast Boards Co. is a merchandising business. the account balances for south coast boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:
Check: 8. Net Income 693,800
Click here for the SOLUTION
110 Cash $63600
112 A/R $153900
115 Merchandise Inventory $602400
116 Prepaid insurance $16800
117 Store supplies $11400
123 store equipment $469500
124 Accum. Depr. --Store equip $56700
210 A/P $96600
211 Salaries payable $-
310 capital stock $100000
311 retained earnings, Aug 1 2009 $455300
312 Dividends $135000
313 Income summary $-
410 Sales $3221100
411 Sales return and allowances $92700
412 Sales discounts $59400
510 Cost of merchandise sold $1623000
520 sales salaries expense $334800
521 advertising expense $81000
522 depreciation expense $-
523 store supplies expense $-
529 misc. selling expense $12600
530 Office salaries expense $182100
531 Rent Expense $83700
532 insurance expense $-
539 Misc. Administrative expense $7800
During July, the last month of the fiscal year, the following transactions were completed:
July
1, Paid rent for July, $5000.
3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.
4, Paid freight on purchase of July 3, $600.
6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.
7, Received $26500 cash from Yuba Co. on account, no discount.
10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $7500
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $36000.
19, Paid $18000 to Blakke Co. on account, no discount
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.
24, Returned $2000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Instructions
1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare and unadjusted trial balance.
4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
a) Merchandise inventory on July 31 $ 589850
b) Insurance expired during the year $ 12500
c) Store supplies on hand on July 31 $4700
d) Depreciation for the current year $18800
e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)
5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance
8. Prepare an income statement, a retained earnings statement, and a balance sheet.
9. Prepare and post the closing entries. Indicated closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.
10. Prepare a post-closing trial balance.
Check: 8. Net Income 693,800
Click here for the SOLUTION
Wednesday, January 27, 2010
*NEW* ACC 225: Week Nine Solution
ACC 225
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 9 Solution
1. Final Project: Comprehensive Problem-Perpetual
• Review Chapter 7 Demonstration problem
• Resources: Appendix A, Fundamental Accounting Principles, p. 301, and Appendix C
• Complete the Comprehensive Problem-Perpetual. In this project, follow the steps of the accounting cycle to process given transactions in a business environment. Then, synthesize special journals, a trial balance, financial statements, and a post-closing trial balance.
• Use the spreadsheet in Appendix C available on the student Web site to complete the problems. Use the tabs labeled P07C and Given P07C.
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 9 Solution
1. Final Project: Comprehensive Problem-Perpetual
• Review Chapter 7 Demonstration problem
• Resources: Appendix A, Fundamental Accounting Principles, p. 301, and Appendix C
• Complete the Comprehensive Problem-Perpetual. In this project, follow the steps of the accounting cycle to process given transactions in a business environment. Then, synthesize special journals, a trial balance, financial statements, and a post-closing trial balance.
• Use the spreadsheet in Appendix C available on the student Web site to complete the problems. Use the tabs labeled P07C and Given P07C.
Click here for the SOLUTION
Tuesday, January 19, 2010
ACC 225: Week Nine Solution
ACC 225
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 9 Solution
Final Project: Comprehensive Problem-Perpetual
• Resources: Appendix A, Fundamental Accounting Principles, p. 301, and Appendix C
• Due Date: Day 7 [Individual] forum
• Complete the Comprehensive Problem-Perpetual. In this project, follow the steps of the
accounting cycle to process given transactions in a business environment. Then,
synthesize special journals, a trial balance, financial statements, and a post-closing trial
balance.
• Use the spreadsheet in Appendix C available on aXcess to complete the problems. Be
sure to use the tabs labeled P07C and Given P07C.
• Post your answers as an attachment.
Click here for the SOLUTION
Axia College of University of Phoenix (UoP)
Financial Accounting
Larson, K. D., Wild, J. J., & Chiappetta B. (2005). Fundamental accounting principles (17th ed.)
ACC 225 Week 9 Solution
Final Project: Comprehensive Problem-Perpetual
• Resources: Appendix A, Fundamental Accounting Principles, p. 301, and Appendix C
• Due Date: Day 7 [Individual] forum
• Complete the Comprehensive Problem-Perpetual. In this project, follow the steps of the
accounting cycle to process given transactions in a business environment. Then,
synthesize special journals, a trial balance, financial statements, and a post-closing trial
balance.
• Use the spreadsheet in Appendix C available on aXcess to complete the problems. Be
sure to use the tabs labeled P07C and Given P07C.
• Post your answers as an attachment.
Click here for the SOLUTION
Thursday, January 14, 2010
The General's Favorite Fishing Hole - Period 2: Bob Night’s fishing camp, “The General’s Favorite Fishing Hole,” is in the second month
The General's Favorite Fishing Hole - Period 2
Click here for the SOLUTION
Looking for Period 1 (month of April)? Click here.
Comprehensive Problem. Heintz and Parry. College Accounting 19th Edition.
The General’s Favorite Fishing Hole
PERIOD 2
The General’s Favorite Fishing Hole
Bob Night’s fishing camp, “The General’s Favorite Fishing Hole,” is in the second month of operation. The camp is open from April through September, which allows for many college basketball coaches to attend during their off-season. The camp’s attendees arrive on Sunday afternoon and return home the following Saturday afternoon. Each attendee pays a registration fee that includes room and board, the use of fishing boats, and professional instruction in fishing techniques. Based on suggestions from clients, Night plans to expand the facilities and provide additional services. The post-closing trial balance as of April 30, and chart of accounts are provided below.
The General’s Favorite Fishing Hole
The following transactions took place during May 20--
The General’s Favorite Fishing Hole
May
1 In order to provide snacks for guests on a 24 hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Night received a check for $200, the estimated commission on sales for May.
2 Night purchased a surround sound system and big screen TV with a Digital Satellite System for the guest lounge. The surround sound system cost $3,600 and has an estimated useful life of 5 years, and no salvage value. The TV cost $8,000 and has an estimated useful life of 8 years, and a salvage value of $800. Night paid cash for both items.
2 Paid for May’s programming on the new Digital Satellite System, $125.
3 Night's office manager returned $100 worth of office supplies to Gordon Office Supply. Night received a $100 reduction in our account with Gordon.
3 Deposited registration fees, $52,700
3 Paid rent for lodge and campgrounds for the month of May, $40,000.
3 In preparation for the purchase of a nearby campground, Night invested an additional $600,000.
4 Paid Gordon Office Supply on account, $400.
4 Purchased the assets of a competing business and paid cash for the following: land $100,000, lodge $530,000 and fishing boats $9,000. The lodge has a remaining useful life of 50 years and a $50,000 salvage value. The boats have remaining lives of 5 years and zero salvage value.
5 Paid May's insurance premium for the new camp, $1,000
5 Purchased food supplies from Acme Super Market on account, $22,950.
5 Purchased office supplies from Gordon Office Supplies on account, $1,200.
7 Night paid $40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master.
10 Deposited registration fees, $62,750
13 Paid wages to fishing guides, $30,000.
14 A guest because ill and was unable to stay for the entire week. A refund was issued in the amount of $1,000.
17 Deposited registration fees, $63,000.
19 Purchased food supplies from Acme Super Market on account, $18,400.
21 Deposited registration fees, $63,400
23 Paid $2,500 for advertising spots on National Sports Talk Radio
25 Paid repair fee for damaged boat, $ 850.
27 Paid wages to fishing guides, $30,000.
28 Paid $1,800 for advertising spots on billboards in the mid-west.
29 Purchased food supplies from Acme Super Market on account, $14,325.
30 Paid utilities bill, $3,300
30 Paid telephone bill, $1,800.
30 Paid Acme Super Market on account, $47,350.
31 Bob Night withdrew cash for personal use, $7,500.
Adjustment information at the end of May is provided below.
a. Total vending machine sales were $2,300 for the month of May.
b. Straight-line depreciation is used for the 10 boats purchased on April 2nd for $60,000. The useful life for these assets is 5 years and there is no salvage value. A full month's depreciation was taken in April on these boats.
c. Straight line depreciation is used for the 2 boats purchased in May.
d. Straight line depreciation is used to depreciate the surround sound system.
e. Straight line depreciation is used to depreciate the big screen TV.
f. Straight line depreciation is used for the building purchased in May.
g. On April 2nd Night paid $9,000 for insurance during the six-month camping season. May's portion of this premium was used up during this month.
h. Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master.
i. Office supplies remaining on hand, $150.
j. Food supplies remaining on hand, $5,925.
k. Wages earned, but not yet paid, at the end of May, $6,000.
The General’s Favorite Fishing Hole
REQUIRED
1. Enter the above transactions in a general journal. Enter transactions from May 1-4 on page 5, May 5-28 on page 6, and the remaining entries on page 7.
2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles and account numbers in the general ledger accounts.)
3. Prepare a trial balance on a work sheet.
4. Complete the work sheet.
5. Prepare the income statement.
6. Prepare the statement of owner’s equity
7. Prepare the balance sheet.
8. Journalize the adjusting entries on page 8 of the general journal.
9. Post the adjusting entries to the general ledger.
10. Journalize the closing entries on page 9 of the general journal.
11. Post the closing entries to the general ledger.
12. Prepare a post-closing trial balance.
Click here for the SOLUTION
Click here for the SOLUTION
Looking for Period 1 (month of April)? Click here.
Comprehensive Problem. Heintz and Parry. College Accounting 19th Edition.
The General’s Favorite Fishing Hole
PERIOD 2
The General’s Favorite Fishing Hole
Bob Night’s fishing camp, “The General’s Favorite Fishing Hole,” is in the second month of operation. The camp is open from April through September, which allows for many college basketball coaches to attend during their off-season. The camp’s attendees arrive on Sunday afternoon and return home the following Saturday afternoon. Each attendee pays a registration fee that includes room and board, the use of fishing boats, and professional instruction in fishing techniques. Based on suggestions from clients, Night plans to expand the facilities and provide additional services. The post-closing trial balance as of April 30, and chart of accounts are provided below.
The General’s Favorite Fishing Hole
The following transactions took place during May 20--
The General’s Favorite Fishing Hole
May
1 In order to provide snacks for guests on a 24 hour basis, Night signed a contract with Snack Attack. Snack Attack will install vending machines with food and drinks and pay a 10% commission on all sales. Estimated payments are made at the beginning of each month. Night received a check for $200, the estimated commission on sales for May.
2 Night purchased a surround sound system and big screen TV with a Digital Satellite System for the guest lounge. The surround sound system cost $3,600 and has an estimated useful life of 5 years, and no salvage value. The TV cost $8,000 and has an estimated useful life of 8 years, and a salvage value of $800. Night paid cash for both items.
2 Paid for May’s programming on the new Digital Satellite System, $125.
3 Night's office manager returned $100 worth of office supplies to Gordon Office Supply. Night received a $100 reduction in our account with Gordon.
3 Deposited registration fees, $52,700
3 Paid rent for lodge and campgrounds for the month of May, $40,000.
3 In preparation for the purchase of a nearby campground, Night invested an additional $600,000.
4 Paid Gordon Office Supply on account, $400.
4 Purchased the assets of a competing business and paid cash for the following: land $100,000, lodge $530,000 and fishing boats $9,000. The lodge has a remaining useful life of 50 years and a $50,000 salvage value. The boats have remaining lives of 5 years and zero salvage value.
5 Paid May's insurance premium for the new camp, $1,000
5 Purchased food supplies from Acme Super Market on account, $22,950.
5 Purchased office supplies from Gordon Office Supplies on account, $1,200.
7 Night paid $40 each for one-year subscriptions to Fishing Illustrated, Fishing Unlimited, and Fish Master.
10 Deposited registration fees, $62,750
13 Paid wages to fishing guides, $30,000.
14 A guest because ill and was unable to stay for the entire week. A refund was issued in the amount of $1,000.
17 Deposited registration fees, $63,000.
19 Purchased food supplies from Acme Super Market on account, $18,400.
21 Deposited registration fees, $63,400
23 Paid $2,500 for advertising spots on National Sports Talk Radio
25 Paid repair fee for damaged boat, $ 850.
27 Paid wages to fishing guides, $30,000.
28 Paid $1,800 for advertising spots on billboards in the mid-west.
29 Purchased food supplies from Acme Super Market on account, $14,325.
30 Paid utilities bill, $3,300
30 Paid telephone bill, $1,800.
30 Paid Acme Super Market on account, $47,350.
31 Bob Night withdrew cash for personal use, $7,500.
Adjustment information at the end of May is provided below.
a. Total vending machine sales were $2,300 for the month of May.
b. Straight-line depreciation is used for the 10 boats purchased on April 2nd for $60,000. The useful life for these assets is 5 years and there is no salvage value. A full month's depreciation was taken in April on these boats.
c. Straight line depreciation is used for the 2 boats purchased in May.
d. Straight line depreciation is used to depreciate the surround sound system.
e. Straight line depreciation is used to depreciate the big screen TV.
f. Straight line depreciation is used for the building purchased in May.
g. On April 2nd Night paid $9,000 for insurance during the six-month camping season. May's portion of this premium was used up during this month.
h. Night received his May issues of Fishing Illustrated, Fishing Unlimited, and Fish Master.
i. Office supplies remaining on hand, $150.
j. Food supplies remaining on hand, $5,925.
k. Wages earned, but not yet paid, at the end of May, $6,000.
The General’s Favorite Fishing Hole
REQUIRED
1. Enter the above transactions in a general journal. Enter transactions from May 1-4 on page 5, May 5-28 on page 6, and the remaining entries on page 7.
2. Post the entries to the general ledger. (If you are not using the working papers that accompany this text, you will need to enter the account titles and account numbers in the general ledger accounts.)
3. Prepare a trial balance on a work sheet.
4. Complete the work sheet.
5. Prepare the income statement.
6. Prepare the statement of owner’s equity
7. Prepare the balance sheet.
8. Journalize the adjusting entries on page 8 of the general journal.
9. Post the adjusting entries to the general ledger.
10. Journalize the closing entries on page 9 of the general journal.
11. Post the closing entries to the general ledger.
12. Prepare a post-closing trial balance.
Click here for the SOLUTION
The General's Favorite Fishing Hole - Period 1: Bob night opened "The General's Favorite Fishing Hole"
The General's Favorite Fishing Hole - Period 1
Click here for the SOLUTION
Comprehensive Problem. Heintz and Parry. College Accounting 19th Edition.
PERIOD 1
The Account Cycle
Bob night opened "The general's favorite Fishing Hole" The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below.
The General's Favorite Fishing Hole
Chart of Account.
Assets Revenues
101 cash 401 Registration fees
142 Office Supplies
144 Food Supplies Expenses
145 Prepaid Insurance 511 Wages Expense
181 Fishing Boat 521 Rent Expense
181.1 Accum. Depr-Fishing Boats 523 Office Supplice Expense
524 Food Supplice Expense
Liabilities 525 Telephone Expense
202 Account Payable 533 utilities Expense
219 Wages Payable 535 Insurance Expense
536 pastage Expense
Owner's Equuity 542 Depr. Exp-Fishing Boats
311 Bob Night Payable
312 Bob Night Drawing
313 Income Summary
The following transactions took place during April 20--
April
1 Night invested cash in the business $90,000.
1 Paid insurance premium for camping season, 9,000.
2 Paid rent for lodge and campgrounds for the month of April, $40,000.
2 Deposited registration fee, $35,000
2 Purchase ten fishing boats on account for $60,000. The boats have estimated useful
lives of five years, at which time they will be donated to a local day camp. Arrangement
were made to pay for the boats in July.
3 Purchase food supplies from Acme Super Market on account, $7,000.
5 Purchase office supplies from Gordon Office Supplies on account, $500.
7 Deposited registration fee, $38,600.
10 Purchased food supplies from Acme Super Market on account, $8,200
10 Paid wages to fishing guides, $10,000
14 Deposited registration fees, $30,500
16 Purchased food supplies from Acme Super Market on account, $9,000
17 Paid wages to fishing guides, $10,000
18 Paid postage , $150.
21 Deposited registration fees, $35,600
24 Purchased food supplies from Acme Super Market on account, $8,500
24 Paid wages to fishing guides, $10,000
28 Deposited registration fees, $32,000.
29 Paid wages to fishing guides, $10,000
30 Purchased food supplies from Acme Super Market on account, $6,000.
30 Paid Acme Super market on account ,$32,700.
30 Paid utilities bill, $2,000.
30 Paid telephone bill, $1,200.
30 Bob Night withdrew cash for personal use, $6,000
Adjustment information for the end of April is provided below.
a Office supplies remaining on hand, $100.
b Food supplies remaining on hand, $8,000.
c Insurance expired during the month of April, $1,500.
d Depreciation on the fishing boatsfor the month of April, $1,000.
e Wages earned , but not yet paid, at the end of April, $500.
Required:
1 Enter the above transactions in a general journal. Enter transactions from April 1-5 on pages 1, April 7-8 on page 2, April 21-29 and the first two entries for April 30 on page 3, and the remain entries for April 30 on page 4.
2 Post the entries to the general ledger.(if you are not using the working papers that accompany this text, you will need to enter the account titles and account numbers in the general leger accounts).
3 Prepare a trial balance on a work sheet.
4 Complete the work sheet.
5 Prepare the income statement.
6 Prepare the statement of owner's equity
7 Prepare the balance sheet.
8 Journalise the adjusting entries (page 5)
9 Post the adjusting entries to the general ledger.
10 Journalise the closing entries (page 5 and 6)
11 Post the closing entries to the general ledger.
12 Prepare a post-closing trial balance.
Click here for the SOLUTION
Click here for the SOLUTION
Comprehensive Problem. Heintz and Parry. College Accounting 19th Edition.
PERIOD 1
The Account Cycle
Bob night opened "The general's favorite Fishing Hole" The fishing camp is open from April through September and attracts many famous college basketball coaches during the off-season. Guests typically register for one week, arriving on Sunday afternoon and returning home the following Saturday afternoon. The registration fee includes room and board, the use of fishing boats, and professional instruction in fishing techniques. The chart of accounts for the camping operations is provided below.
The General's Favorite Fishing Hole
Chart of Account.
Assets Revenues
101 cash 401 Registration fees
142 Office Supplies
144 Food Supplies Expenses
145 Prepaid Insurance 511 Wages Expense
181 Fishing Boat 521 Rent Expense
181.1 Accum. Depr-Fishing Boats 523 Office Supplice Expense
524 Food Supplice Expense
Liabilities 525 Telephone Expense
202 Account Payable 533 utilities Expense
219 Wages Payable 535 Insurance Expense
536 pastage Expense
Owner's Equuity 542 Depr. Exp-Fishing Boats
311 Bob Night Payable
312 Bob Night Drawing
313 Income Summary
The following transactions took place during April 20--
April
1 Night invested cash in the business $90,000.
1 Paid insurance premium for camping season, 9,000.
2 Paid rent for lodge and campgrounds for the month of April, $40,000.
2 Deposited registration fee, $35,000
2 Purchase ten fishing boats on account for $60,000. The boats have estimated useful
lives of five years, at which time they will be donated to a local day camp. Arrangement
were made to pay for the boats in July.
3 Purchase food supplies from Acme Super Market on account, $7,000.
5 Purchase office supplies from Gordon Office Supplies on account, $500.
7 Deposited registration fee, $38,600.
10 Purchased food supplies from Acme Super Market on account, $8,200
10 Paid wages to fishing guides, $10,000
14 Deposited registration fees, $30,500
16 Purchased food supplies from Acme Super Market on account, $9,000
17 Paid wages to fishing guides, $10,000
18 Paid postage , $150.
21 Deposited registration fees, $35,600
24 Purchased food supplies from Acme Super Market on account, $8,500
24 Paid wages to fishing guides, $10,000
28 Deposited registration fees, $32,000.
29 Paid wages to fishing guides, $10,000
30 Purchased food supplies from Acme Super Market on account, $6,000.
30 Paid Acme Super market on account ,$32,700.
30 Paid utilities bill, $2,000.
30 Paid telephone bill, $1,200.
30 Bob Night withdrew cash for personal use, $6,000
Adjustment information for the end of April is provided below.
a Office supplies remaining on hand, $100.
b Food supplies remaining on hand, $8,000.
c Insurance expired during the month of April, $1,500.
d Depreciation on the fishing boatsfor the month of April, $1,000.
e Wages earned , but not yet paid, at the end of April, $500.
Required:
1 Enter the above transactions in a general journal. Enter transactions from April 1-5 on pages 1, April 7-8 on page 2, April 21-29 and the first two entries for April 30 on page 3, and the remain entries for April 30 on page 4.
2 Post the entries to the general ledger.(if you are not using the working papers that accompany this text, you will need to enter the account titles and account numbers in the general leger accounts).
3 Prepare a trial balance on a work sheet.
4 Complete the work sheet.
5 Prepare the income statement.
6 Prepare the statement of owner's equity
7 Prepare the balance sheet.
8 Journalise the adjusting entries (page 5)
9 Post the adjusting entries to the general ledger.
10 Journalise the closing entries (page 5 and 6)
11 Post the closing entries to the general ledger.
12 Prepare a post-closing trial balance.
Click here for the SOLUTION
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