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.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
Related questions
Question
Prepare the company income statement for 2019
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning