InstructionsPalisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co as of May 1, 20Y7 (unless otherwise indicated), are as follows:110Cash$83,600112Accounts Receivable233,900115Merchandise Inventory652,400117Prepaid Insurance16,800118Store Supplies11,400123Store Equipment569,500124Accumulated Depreciation-Store Equipment56,700210Accounts Payable96,600211Customer Refunds Payable50,000212Salaries Payable310Lynn Tolley, Capital, June 1, 20Y6685,300311Lynn Tolley, Drawing135,000410Sales5,069,000510Cost of Merchandise Sold2,823,000520Sales Salaries Expense664,800521Advertising Expense281,000522Depreciation Expense523Store Supplies Expense529Miscellaneous Selling Expense12,600530Office Salaries Expense382,10083,700531Rent Expense532Insurance Expense7 800539Miscellaneous Administrative ExnenseRecord the following transactions on page 20 of the journal.MayPaid rent for May, $5,000.Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.4.Paid freight on purchase of May 3, $600.Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The costof the merchandise sold was $41,000.7.Received $22,300 cash from Halstad Co. on account10Sold merchandise for cash, S54,000. The cost of the merchandise sold was $32,000.13Paid for merchandise purchased on May 3.15Paid advertising expense for last half of May, $11,000.16Received cash from sale of May 6.19Purchased merchandise for cash, $18,700.19Paid $33,450 to Buttons Co. on account.20Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co.kept the merchandise.Adjusted Trial BalanceInstructionsRecord the following transactions on page 21 of the journal.20Sold merchandise on account to Crescent Co., terms 1/10, n/30, FÖB shipping point, $110.000. TheMaycost of the merchandise sold was $70,000.21For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.21Received $42,900 cash from Gee Co. on account21Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88.000.24Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for$5,000.26Refunded cash on sales made for cash, $800. The defective merchandise was not returned by thecustomer.28Paid sales salaries of $56,000 and office salaries of $29,000.29Purchased store supplies for cash, $2,400.30Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost ofthe merchandise sold was $47,000.30Received cash from sale of May 20 plus freight paid on May 21.31Paid for purchase of May 21, less return of May 24. 2, PartInstructionsChart of AccountsJournalLedgerUnadjusted Trial BalanceAdjusted Trial BalanceInstructionsin Part 1 of this problem as well as steps in Part 2 of this problem. Your input into the spreadsheet will not be included in your grade inCengageNOW on this problem.A. Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account. Enter May 1 in the datecolumn. Write Balance in the item section, and enter "X" in the Posting Reference column.B. Journalize the transactions for May, starting on Page 20 of the journal.2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed Inthis problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Add the appropriateposting reference to the journal.3. Prepare an unadjusted trial balance. Accounts with zero balances can be left blank4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6)• Merchandise inventory on May 31, $585,200• Insurance expired during the year, $12,000• Store supplies on hand on May 31, $4,000• Depreciation for the current year, $14,000· Accrued salaries on May 31:Sales salaries, $7,000Office salaries, $6,600Total accrued salaries: $13,600• The adjustment for customer refunds and allowances is $60,000.Ln. 6 Comprehensive Problem 2, Part 1Adjusted Trial BalanceLedgerUnadjusted Trial BalanceChart of AccountsJournalInstructionsInstructionsme aujuSunent or castomer Teiunu arnu anowarices o VOu,000.5. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), andcomplete the spreadsheet. Find a blank end-of-period work sheet in the Excel spreadsheet you previously downloaded.6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*B. Post the adjusting entries. Add the appropriate posting reference to the journal.7. Prepare an adjusted trial balance. Accounts with zero balances can be left blank.*Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations.. Every lineon a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.InstructionsRequired:8. If you completed the end-of-period work sheet in Part 1, use the adjusted trial balance figures to prepare an income statement, a statement ofowner's equity, and a balance sheet. If you didn't complete the end-of-period work sheet in Part 1, use the ledger (the Excel spreadsheet) toprepare an income statement, a statement of owner's equity, and a balance sheet"9.A. Prepare the closing entries. Record the closing entrieon Page 23 of the journal. Refer to the chart of accounts for the exact wording of theaccount titles. CNOW jourmals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOWjournals will automatically indent a credit entry when a credit amount is entered.B. Post the closing entries to the ledger of four-column accounts. Add the appropriate posting reference to the journal.10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank."For guidance in completing the financial statements, be sure to read the instructions above each statement carefully

Journal - A business's initial financial transactions are recorded in the journal, which is its…

Creek Co, is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: $83,600 233,900 652,400 16,800 11,400 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 212 Customer Refunds Payable Salaries Payable Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold 520 Sales Salaries Expense 310 311 410 510 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800

Creek Co, is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 20Y7 (unless otherwise indicated), are as follows: $83,600 233,900 652,400 16,800 11,400 110 Cash 112 Accounts Receivable 115 Merchandise Inventory 117 Prepaid Insurance 118 Store Supplies 123 Store Equipment 124 Accumulated Depreciation-Store Equipment 210 Accounts Payable 211 212 Customer Refunds Payable Salaries Payable Lynn Tolley, Capital, June 1, 20Y6 Lynn Tolley, Drawing Sales Cost of Merchandise Sold 520 Sales Salaries Expense 310 311 410 510 569,500 56,700 96,600 50,000 685,300 135,000 5,069,000 2,823,000 664,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is available for a company: Beginning inventory $ 33,000 Inventory purchases (on account) 163,000 Freight charges on purchases (paid in cash) 18,000 Inventory returned to suppliers (for credit) 20,000 Ending inventory 38,000 Sales (on account) 258,000 Cost of inventory sold 156,000 Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated. Record merchandise purchased on account for $163,000. Record the payment of $18,000 in cash for freight charges. Record merchandise returned to supplier for credit of $20,000. Record sales on account of $258,000. Record cost of merchandise sold of $156,000.
Deala Ltd. (DL) is a retailer of office equipment. The company uses a periodic inventory system and on October 1 had 1,900 units of inventory with a total cost of $41,800. During the month of October, DL had the following inventory-related transactions: Date Oct. 9 12 17 25 Oct. 31 28 Explanation Purchase Purchases Sale Purchase: Cost of ending inventory Cost of goods sold Inventory Sale Purchases Cost of Goods Sold Units 5,100 $ Inventory 4.400 Date Account Titles and Explanation (5,100) 4,100 (6.300 Y Calculate ending inventory at October 31 and cost of goods sold for the month assuming that DL used (1) FIFO and (2) average cost. (Round average cost per unit to 2 decimal places, e.g. 50.25 and all other answers to the nearest whole dollar, e.g. 5,275.) FIFO Unit Cost/Price $23.00 93480 22.50 258100 38.00 22.80 38.00 Total Cost $117,300 99,000 Assuming the company uses FIFO, record the adjusting journal entry needed at the end of October to update the Inventory and Cost of Goods Sold…
The XZ Ltd. is a retailer and uses the Perpetual Inventory System. The below information is available regarding the purchases and sales activities: Purchase price: $4.20 Selling price: $5.70 Purchase discount (paid in 10 days): 6% Sales discount (received in 15 days): 10% Calculate the correct entries for its business activities. The XZ purchased 300 units on credit from AA on the 2nd of July. The XZ sold 200 units on credit to DSX on the 3rd of July. The XZ returned 50 defective units to AA on the 9th of July. The XZ paid cash to AA on the 11th of July. DSX paid its purchase on the 12th of July.
Presented below are selected transactions for Flounder Company during September and October of the current year. Flounder uses a periodic inventory system. Sept. 1 Purchased merchandise on account from Hillary Company at a cost of $49,000, FOB destination, terms 1/15, n/30. 2 The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. 5 Returned for credit $2,240 of damaged goods purchased from Hillary Company on September 1. 15 Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $116,900, terms 2/10, n/30, FOB destination. 16 The correct company paid $2,500 of freight charges on the September 15 sale of merchandise. 17 Issued Irvine Company a credit of $5,600 for returned goods. These goods had cost Flounder Company $3,000 and were returned to inventory. 25 Received the balance owing from Irvine Company for the September 15 sale. 30 Paid Hillary Company the balance…
On March 10, the Stone Company sold merchandise listing for $3,000 to the Dillard Company, terms 1/10, n/30. On March 14, $200 worth of merchandise was returned because it was the wrong size. On March 20, Stone Company received a check for the amount due. Required Record the journal entries made by Stone Company for these transactions Stone uses the periodic inventory system General Journal Description Date Mar 10 Accounts Receivable Cath Sold merchandises Dund Company terms 1/16/30 14 Merchande returned by Dars Company 20 Cash Remittance received from Dard Company # 1 Debit 1.000 00 Credit 1.000 0 O 0
Journalize the following transactions for Armour Inc. Oct. 7 Sold merchandise on credit to Rondo Distributors, for $1,200, terms n/30. The cost of the merchandise was $720. Purchased merchandise, $10,000, terms FOB shipping point, 2/15, n/30, with prepaid freight charges of $525 added to the invoice. Journalize the transactions above using the periodic inventory system. If an amount box does not require an entry, leave it blank. Oct. 7 Oct. 8 Journalize the transactions above using the perpetual inventory system. Oct. 7- Sale Cost Oct. 8
Teal Mountain, Inc. uses a perpetual inventory system. Its beginning inventory consists of 200 units that cost $ 220 each. During August, the company purchased 255 units at $ 220 each, returned 4 units for credit, and sold 375 units at $ 340 each. Journalize the August transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
a company purchased 3300 of merchandise on july 5th with term 3/10 n/30 on july 7th it returned of 900 worth of merchandise on july 12 it paid the full amount due assuming the company uses a perpetual inventory system and records purchases using the gross method the correct journal entry to record the payment on july 12th is debit merchandise inventory 2400 credit cash 2400 debit cash 2400 credit account Pay 2400 debit account Pay 2400 credit merchandise inventory 72 credit cash 2328 debit account pay 3300 credit cash 3300 debit account pay 2400 credit cash 2400
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,600, on account, terms n/30 FOB shipping point. 9 Paid freight of $50 on calculators purchased from Dragoo Co. 10 Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. 12 Sold calculators costing $520 for $690 to Fryer Book Store, on account, terms n/30. 14 20 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. Sold calculators costing $570 for $760 to Heasley Card Shop, on account, terms n/30. Journalize the September transactions for Office Depot. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O…
Nixa Office Supply uses a perpetual inventory system. On September 12, Nixa Office Supply sold 26 calculators costing $23 for $31 each to Sura Book Store, terms n/30. Journalize the September 12 transaction for Nixa. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Sept. 12 (To record credit sale) Sept. 12 (To record cost of merchandise sold)