Required information[The following information applies to the questions displayed below.]The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow:Account TitlesBeginning BalancesCashInventoryCommon StockRetained Earnings$ 6,1703,1007,3901,880The following events affected the company during the Year 2 accounting period:1. Purchased merchandise on account that cost $4,180.2. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash.3. Returned $400 of damaged merchandise for credit on account.4. Agreed to keep other damaged merchandise for which the company received a $205 allowance.5. Sold merchandise that cost $2,670 for $4,770 cash.6. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $200cash.7. Paid $2,890 on the merchandise purchased in Event 1.b. Prepare an income statement and a statement of cash flows for Year 2. (Assume that closing entries have been made.)Complete this question by entering your answers in the tabs below.IncomeStatementStatement ofCash Flows

Step 1: Preparation of income statement.TERRY'S AUTO SHOP Income Statement For the year ended Dec…

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 5PA: Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of...

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The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows. Assume that Markeys Mountain Shop uses the perpetual inventory system. a. Merchandise Inventory at December 31, 140,357. b. Store supplies inventory (on hand) at December 31, 540. c. Depreciation of building, 3,400. d. Depreciation of store equipment, 3,800. e. Salaries accrued at December 31, 1,250. f. Insurance expired during the year, 1,480. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.
Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.
The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms on sales on account are 2/10, n/30, FOB shipping point. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payment journal as appropriate. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of debit and credit totals.
Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. 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. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.
Required information [The following information applies to the questions displayed below.) The beginning account balances for Terry's Auto Shop as of January 1, Year 2, follow: Account Titles Cash Inventory Common Stock Retained Earnings Beginning Balances $6,040 3,020 7,490 1,570 The following events affected the company during the Year 2 accounting period: 1. Purchased merchandise on account that cost $4,190. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $265 cash. 3. Returned $490 of damaged merchandise for credit on account. 4. Agreed to keep other damaged merchandise for which the company received a $200 allowance. 5. Sold merchandise that cost $2,630 for $4,910 cash. 5. Delivered merchandise to customers in Event 5 under terms FOB destination with freight costs amounting to $160 cash. 7. Paid $2,970 on the merchandise purchased in Event 1. red
Journalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. Mar. 1 Purchased $48,400 of merchandise from Wright Co. on account, terms 2/10, n/30. 9 Paid the amount owed on the invoice within the discount period. 11 Discovered that $7,800 of the merchandise purchased on Mar. 1 was defective and returned items, receiving credit. 18 Purchased $6,000 of merchandise from Wright Co. on account, terms n/30. 20 Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18. CHART OF ACCOUNTS Manville Heating & Air Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise 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…
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Journalize entries for the following related transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for the exact wording of account titles. A. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. B. Paid the amount owed on the invoice within the discount period. C. Discovered that $9,000 of the merchandise purchased in (A) was defective and returned items, receiving credit. D. Purchased $5,000 of merchandise from Schell Co. on account, terms n/30. E. Received a refund from Schell Co. for return in (C) less the purchase in (D). CHART OF ACCOUNTS Lilly Heating & Air Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 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…
Aviles Corporation engaged in the following transactions during June. DATE. TRANSACTIONS June 4, 20X1. Purchased merchandise on account from Eliassen Company; Invoice 100 for 1,145; terms n/30. June 15,20X1. Recorded purchases for cash, 1,630. June 30, 20X1. Paid amount due to Eliassen Company for the purchase on June 4. Required: Record these transactions in a general journal. View transaction list Journal entry worksheet < 1 2 Date June 04, 20X1 Note: Enter debits before credits. 3 Purchased merchandise on account from Eliassen Company; Invoice 100 for $1,145; terms n/30. Record entry Show Transcribed Text 3 General Journal Clear entry c Date. General Journal. Debit. Credit June 04, 20X1 Debit Credit View general journal Journal entry worksheet Purchased merchandise on account from Eliassen Company; Invoice 100 for 1,145; terms n/30
Journalize the entores for the following related transactions of Manville Heating & Air company: A. purchased $31,000 of merchandise from Wright Co. On account,terms 1/10 ,n/30. ______ ______ B. Paid the amount owed on the invoice within the discount period. _____ _____ C. Discovered that $6,200 of the merchandise purchased in (a) was defective and returned items, receiving credit. _____ _____ D. Purchased $4,700 of merchandise from Wright company on account terms n/30. _____ _____ E. Received a refund from Wright company for return in (c) less the purchase in (d). _____ _____
how do i prepare the journal entry ? Assume that Sunland Company received the balance due from Culver Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2 Presented below are transactions related to Sunland Company. 1. On December 3, Sunland Company sold $650,000 of merchandise on account to Culver Co., terms 2/10, n/30, FOB destination. Sunland paid $300 for freight charges. The cost of the merchandise sold was $353,600. 2. On December 8, Culver Co. was granted an allowance of $29,500 for merchandise purchased on December 3. 3. On December 13, Sunland Company received the balance due from Culver Co.
Required information [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise Sales (gross revenue) on Credit Office Expense Sales Returns and Allowances Salaries and Wages Expense 2-a. Gross Profit 2-b. Gross Profit Percentage $ 169,000 18,940 248,000 43,600 19,400 2-a. What was the dollar amount of gross profit? 2-b. What was the gross profit percentage? (Round your percentage to 1 decimal place.) % 7,290 41,800

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