Instructions Date Dec. 4 7 14 18 20 21 27 28 31 Transaction Made cash sales of $3,000; the cost of the inventory sold was $1,800. Purchased $2,400 of inventory on credit. Collected $900 of accounts receivable. Sold land for $7,800; the land originally cost $5,000. Made credit sales of $4,000; the cost of the inventory sold was $2,400. Returned $360 of defective inventory to supplier for credit to the Davis Company's account. Purchased $1,250 of inventory for cash. Paid $1,100 of accounts payable. Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for the balance. Required: 1. Prepare general journal entries to record the preceding transactions. 2. Post to general ledger T-accounts. 3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information: a. accrued salaries at year-end total $1,200; b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with r residual value; C. supplies on hand at the end of the year total $630; d. bad debts expense for the year totals $830; e. the income tax rate is 30%; income taxes are payable in the first quarter of 2020 4. Prepare the company's financial statements for 2019. 5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.
Instructions Date Dec. 4 7 14 18 20 21 27 28 31 Transaction Made cash sales of $3,000; the cost of the inventory sold was $1,800. Purchased $2,400 of inventory on credit. Collected $900 of accounts receivable. Sold land for $7,800; the land originally cost $5,000. Made credit sales of $4,000; the cost of the inventory sold was $2,400. Returned $360 of defective inventory to supplier for credit to the Davis Company's account. Purchased $1,250 of inventory for cash. Paid $1,100 of accounts payable. Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for the balance. Required: 1. Prepare general journal entries to record the preceding transactions. 2. Post to general ledger T-accounts. 3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information: a. accrued salaries at year-end total $1,200; b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with r residual value; C. supplies on hand at the end of the year total $630; d. bad debts expense for the year totals $830; e. the income tax rate is 30%; income taxes are payable in the first quarter of 2020 4. Prepare the company's financial statements for 2019. 5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the company income statement for 2019
Transcribed Image Text:Instructions
Date
Dec. 4
7
14
18
20
21
27
28
31
Transaction
Made cash sales of $3,000; the cost of the inventory sold was $1,800.
Purchased $2,400 of inventory on credit.
Collected $900 of accounts receivable.
Sold land for $7,800; the land originally cost $5,000.
Made credit sales of $4,000; the cost of the inventory sold was $2,400.
Returned $360 of defective inventory to supplier for credit to the Davis Company's account.
Purchased $1,250 of inventory for cash.
Paid $1,100 of accounts payable.
Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for
the balance.
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:
a. accrued salaries at year-end total $1,200;
b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with no
residual value;
c. supplies on hand at the end of the year total $630;
d. bad debts expense for the year totals $830;
e. the income tax rate is 30%; income taxes are payable in the first quarter of 2020
4. Prepare the company's financial statements for 2019.
5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.
Transcribed Image Text:Instructions
On November 30, 2019, Davis Company had the following account balances:
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Inventory
Supplies
Land
Buildings and Equipment
Accumulated Depreciation
Accounts Payable
Common Stock, no par (2,000 shares)
Retained Earnings (1/1/2019)
Dividends
Sales Revenue
Cost of Goods Sold
Salaries Expense
Advertising Expense
Other Expenses
Date
Debit
Transaction
BOLIGSI
$3,090
9,900
17,750
1,400
9,000
42,000
2,000
36,860
12,500
8,100
4,500
Credit
$100
4,200
10,700
20,000
42,400
During the month of December, Davis entered into the following transactions:
69,700
W
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