a. Record April transactions and related adjustment entries in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payment journal, and general journal. (The references for sales journal, single-column purchases journal, cash receipts journal, and cash payment journal were respectively S1, P1, CR1, and CP1)b. Post the appropriate journal entries to the accounts payable subsidiary ledger,accounts receivable subsidiary ledger, and 3 column general ledger. (Beginningbalance accounts receivable subsidiary ledger for XYZ Co., Denia Co., and CEFCo., were respectively S6,300; $10,500; and S4,200 and beginning balance accounts payable subsidiary ledger for JKL Co. was $9,700; the remainingaccounts has not had a beginning balance)c.Prepare an adjusted trial balance at April 30, 2021.d. Prepare a single-step Statement of Profit or Loss for the month ended April 30, 2021. In previous years Rose Company prepared financial statements once a year at the end ofthe year. In 2021, due to market needs, Rose Company prepares financial statementsevery month. To record its inventory Rose Company uses a perpetual method. Thefollowing was the post-closing trial balance for Rose Company as of March 31, 2021.ROSE COMPANYPost-Closing Trial BalanceMarch 31, 2021DebitCreditCash$33,000Accounts Receivable2$21,000Inventory$17,500Supplies$7,200Prepaid Insurance$5,000Prepaid Rent$15,000PPE: Equipment$80,000Acc. Depreciation – PPE: Equipment2$21,000Accounts Payable$9,700Owner's Capital$148,000Totals178,700$178,700The transactions for April 2021 were as follows:April 1Rose invested $85,000 in cash into the business1Purchased a crane for business use for $30,0002Purchased merchandise on account from ABC Co. $72,500, terms 3/10, n/304Returned $2,800 worth of damaged goods purchased on account from ABC Co.on April 24Purchased supplies on account from SDF Co. for $11,1508.Sold merchandise on account to XYZ Co., invoice no. 101, $16,500, terms 2/10,n/30. The cost of the merchandise sold was $13,94010 Paid in full ABC Co. on account less a 3% discount 12 Purchased merchandise on account from JKL Co. $18,500, terms 2/10, n/3013 Received a check for $16,170 from XYZ Co. in payment of an invoice no. 101for $16,500, terms 2/10, n/3014 Sold merchandise costing $22,278 to Denia Co. for $26,400. The merchandisewas not yet paid, terms 2/15, n/30, invoice no. 10216 Sold merchandise on account to CEF Co., invoice no. 103, $14,765, terms 2/10,n/30. The cost of merchandise sold was $12,47518 Cash sales of merchandise total $12,300 (cost, $10,396)20 Purchased merchandise for $28,00022 Purchased merchandise on account from JKL Co. $42,000, terms 2/10, n/3025 Sold merchandise on account to CEF Co. costing $39,644 for $46,920, invoiceno.104, terms 2/10, n/3027 Received a check for $25,872 from Denia Co. in full for invoice no. 102 for$26,400 less a 2% discount29 Received payment from Denia Co. for sales in March of $10,500, withoutdiscount29 Paid in full JKL Co. for $9,700 for credit purchases in March, without discount30 Received cash by signing a note for $30,00030 Paid Salaries and Wages Expense for $8,000Other data:1. At the end of April, there were $11,000 worth of supplies left2. The insurance cost for April was $1,2503. The depreciation expenses for equipment and crane were $580 and $300respectively4. Rent expense was half of the prepaid rent

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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a. Record April transactions and related adjustment entries in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payment journal, and general journal. (The references for sales journal, single-column purchases journal, cash receipts journal, and cash payment journal were respectively S1, P1, CR1, and CP1) b. Post the appropriate journal entries to the accounts payable subsidiary ledger, accounts receivable subsidiary ledger, and 3 column general ledger. (Beginning balance accounts receivable subsidiary ledger for XYZ Co., Denia Co., and CEF Co., were respectively S6,300; $10,500; and S4,200 and beginning balance accounts payable subsidiary ledger for JKL Co. was $9,700; the remaining accounts has not had a beginning balance) c.Prepare an adjusted trial balance at April 30, 2021. d. Prepare a single-step Statement of Profit or Loss for the month ended April 30, 2021.

In previous years Rose Company prepared financial statements once a year at the end of
the year. In 2021, due to market needs, Rose Company prepares financial statements
every month. To record its inventory Rose Company uses a perpetual method. The
following was the post-closing trial balance for Rose Company as of March 31, 2021.
ROSE COMPANY
Post-Closing Trial Balance
March 31, 2021
Debit
Credit
Cash
$
33,000
Accounts Receivable
2$
21,000
Inventory
$
17,500
Supplies
$
7,200
Prepaid Insurance
$
5,000
Prepaid Rent
$
15,000
PPE: Equipment
$
80,000
Acc. Depreciation – PPE: Equipment
2$
21,000
Accounts Payable
$
9,700
Owner's Capital
$
148,000
Totals
178,700
$
178,700
The transactions for April 2021 were as follows:
April 1
Rose invested $85,000 in cash into the business
1
Purchased a crane for business use for $30,000
2
Purchased merchandise on account from ABC Co. $72,500, terms 3/10, n/30
4
Returned $2,800 worth of damaged goods purchased on account from ABC Co.
on April 2
4
Purchased supplies on account from SDF Co. for $11,150
8.
Sold merchandise on account to XYZ Co., invoice no. 101, $16,500, terms 2/10,
n/30. The cost of the merchandise sold was $13,940
10 Paid in full ABC Co. on account less a 3% discount

12 Purchased merchandise on account from JKL Co. $18,500, terms 2/10, n/30
13 Received a check for $16,170 from XYZ Co. in payment of an invoice no. 101
for $16,500, terms 2/10, n/30
14 Sold merchandise costing $22,278 to Denia Co. for $26,400. The merchandise
was not yet paid, terms 2/15, n/30, invoice no. 102
16 Sold merchandise on account to CEF Co., invoice no. 103, $14,765, terms 2/10,
n/30. The cost of merchandise sold was $12,475
18 Cash sales of merchandise total $12,300 (cost, $10,396)
20 Purchased merchandise for $28,000
22 Purchased merchandise on account from JKL Co. $42,000, terms 2/10, n/30
25 Sold merchandise on account to CEF Co. costing $39,644 for $46,920, invoice
no.104, terms 2/10, n/30
27 Received a check for $25,872 from Denia Co. in full for invoice no. 102 for
$26,400 less a 2% discount
29 Received payment from Denia Co. for sales in March of $10,500, without
discount
29 Paid in full JKL Co. for $9,700 for credit purchases in March, without discount
30 Received cash by signing a note for $30,000
30 Paid Salaries and Wages Expense for $8,000
Other data:
1. At the end of April, there were $11,000 worth of supplies left
2. The insurance cost for April was $1,250
3. The depreciation expenses for equipment and crane were $580 and $300
respectively
4. Rent expense was half of the prepaid rent

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