esOn January 1, 2024, Displays Incorporated had the following account balances:Account TitleCashAccounts receivable.SuppliesInventoryLandAccounts payableNotes payable (5%, due next year)Common stockRetained earningsTotalsFrom January 1 to December 31, the following summary transactions occurred:a. Purchased inventory on account for $335,000.b. Sold inventory on account for $595,000. The cost of the inventory sold was $315,000.c. Received $560,000 from customers on accounts receivable.d. Paid freight on inventory received, $29,000.e. Paid $325,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts of $9,000.f. Paid rent for the current year, $47,000. The payment was recorded to Rent Expense.g. Paid salaries for the current year, $155,000. The payment was recorded to Salaries Expense.Year-end adjusting entries:Requirementa. Supplies on hand at the end of the year are $5,000.b. Accrued interest expense on notes payable for the year.c. Accrued income taxes at the end of December are $23,000.Complete this question by entering your answers in the tabs below.GeneralJournalView transaction list1Journal entry worksheetGeneralLedger2DateJanuary 02Debit$ 27,00024,00030,00062,000232,000Credit$ 28,00025,000191,000131,000$ 375,000 $ 375,000Prepare the journal entries for transactions.Note: If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.Note: Enter debits before credits.Record entryTrial BalanceAccount Title3 4 4 5 6 7 8Clear entryIncomeStatementPurchased inventory on account for $335,000. Record the transaction.Balance Sheet*****Debit13Analysis.CreditView general journal>

The process of recording business transactions in the books of accounts for the first time is…

From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $335,000. b. Sold inventory on account for $595,000. The cost of the inventory sold was $315,000. c. Received $560,000 from customers on accounts receivable. d. Paid freight on inventory received, $29,000. e. Paid $325,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts o f. Paid rent for the current year, $47,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $155,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $5,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $23,000. Complete this question by entering your answers in the tabs below. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis

From January 1 to December 31, the following summary transactions occurred: a. Purchased inventory on account for $335,000. b. Sold inventory on account for $595,000. The cost of the inventory sold was $315,000. c. Received $560,000 from customers on accounts receivable. d. Paid freight on inventory received, $29,000. e. Paid $325,000 to inventory suppliers on accounts payable of $334,000. The difference reflects purchase discounts o f. Paid rent for the current year, $47,000. The payment was recorded to Rent Expense. g. Paid salaries for the current year, $155,000. The payment was recorded to Salaries Expense. Year-end adjusting entries: a. Supplies on hand at the end of the year are $5,000. b. Accrued interest expense on notes payable for the year. c. Accrued income taxes at the end of December are $23,000. Complete this question by entering your answers in the tabs below. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Consider the following financial statement information for the Bulldog Icers Corp.: Item Beginning Ending Inventory $ 18,567 $ 20,515 Accounts receivable 20, 281 23,771 Accounts payable 16,736 18,814 Net sales $ 255, 750 Cost of goods sold 145, 012 Calculate the operating and cash cycles. (Do not round intermediate calculations. Round the answers to 4 decimal places.) Operating cycle days Cash cycle days.
The following transactions are for Blossom Company. 1. On December 3, Blossom Company sold $510,000 of merchandise to Crane Co. on account. The cost of the merchandise sold was $336,600. 2. On December 8, Crane Co. returned $25,500 of merchandise purchased on December 3. The cost of the goods was $16,320. 3. On December 13, Blossom Company received the balance due from Crane Co. Prepare a tabular summary to record these transactions for Blossom Company using a perpetual inventory system.
Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also collected sales taxes of $250. The journal entry to record this information includes aa. credit to Sales Tax Expense $250.b. credit to Sales Revenue $5,250.c. debit to Sales Tax Payable $250.d. debit to Cash of $5,250.
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $21,200 was sold for $39,900 under terms 2/20, net/30. Customers returned merchandise to Ozark five days after the purchase. The merchandise had been sold for a price of $1,520. The merchandise had cost Ozark $920. All customers paid their accounts within the discount period. Selling and administrative expenses amounted to $4,200. Interest expense paid amounted to $360. Land that had cost $8,000 was sold for $9,250 cash. Requireda. Determine the amount of net sales. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. Prepare a multistep income statement. (Round your intermediate calculations and final answer to the nearest whole dollar amount. Amounts to be deducted and losses should be indicated with a minus sign.) c. Where would the interest expense be shown on the statement of cash flows? Operating activities…
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 582,500 Cost of goods sold 285,000 Gross profit 297,500 Operating expenses (excluding depreciation) $ 132,400 Depreciation expense 20,750 153,150 Other gains (losses) Loss on sale of equipment (5,125) Income before taxes 139,225 Income taxes expense 24,250 Net income $ 114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 49,800 $ 73,500 Accounts receivable 65,810 50,625 Inventory 275,656 251,800 Prepaid expenses 1,250 1,875 Total current assets 392,516 377,800 Equipment 157,500 108,000 Accumulated…
Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. A. Sold $61,700 of merchandise on account, subject to a sales tax of 6%. The cost of the goods sold was $38,720. B. Paid $40,670 to the state sales tax department for taxes collected. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales…
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.
During March, Sam Company had cash sales of $35,000 and sales on account of $210,000. In April, payments on account totaled $175,000. The journal entry prepared by Sam to record the March sales would include a debit to: A. Cash for $35,000, debit to accounts receivable for $210,000, and credit to sales revenue for $245,000 B. Cash for $35,000, debit to deferred revenue for $210,000, and credit to sales revenue for $245,000 C. Cash for $35,000, debit to accounts payable for $210,000, and credit to sales revenue for $245,000 D. Cash and credit to sales revenue for $35,000
Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Martinez Company for $73,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $55,000 from Blossom Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94,640 zero interest bearing note due 1 year from May 1. (a) Your answer is correct. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered.…
Prime entries.
AB Ltd. has MCC has prepared the Income statement including the following data (all sales are on account): Sales $80,000 Cost of Goods Sold Gross Profit Expenses Net Profit $50,000 $ 25,000 $ 10,000 $15,000 The comparative balance sheet shows the following data (by definition, accounts payable relates to merchandise purchases only): End of Year Beginning of Year Accounts Receivables (net) Inventory Prepaid Expenses Accounts Payable $7,000 $3,000 $2,000 $1,140 $5,280 $2,000 $1,000 $1,500 Required 1: What is the amount of Cash received from Customers? $ Required 2: What is the amount of Cash paid for merchandise purchase? $
The following information is available for the Johnson Corporation: Beginning inventory $ 25,000 Inventory purchases (on account) 155,000 Freight charges on purchases (paid in cash) 10,000 Inventory returned to suppliers (for credit) 12,000 Ending inventory 30,000 Sales (on account) 250,000 Cost of inventory sold 148,000 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 $155,000. Record the payment of $10,000 in cash for freight charges. Record merchandise returned to supplier for credit of $12,000. Record sales on account of $250,000. Record cost of merchandise sold of $148,000. Record the end-of-period adjusting entry. Ending inventory is $30,000.