WINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF AUGUST A. OWNERS INVESTED P 50,000 CASH IN THE CORPORATION IN EXCHANGE FOR 5,000 SHARES OF EQUITY CAPITAL B. EQUIPMENT WAS PURCHASED FOR P 20,000 CASH C. ON THE FIRST DAY OF AUGUST, P 6,000 RENT ON A BUILDING WAS PAID FOR THE MONTHS OF AUGUST AND SEPTEMBER. D. MERCHANDISE COSTING P 38,000 WAS PURCHASED ON ACCOUNT. THE COMPANY USES PERPETUAL INVENTORY SYSTEM. E. P 30,000 WAS BORROWED FROM A LOCAL BANK, AND A NOTE PAYABLE WAS SIGNED F. CREDIT SALES FOR THE MONTH WERE P 40,000. THE COST OF MERCHANDISE SOLD WAS P 22,000. G. P 15,000 WAS COLLECTED ON ACCOUNT FROM CUSTOMERS H. P 20,000 WAS PAID ON ACCOUNT TO SUPLIERS OF MERCHANDISE I. SALARIES OF P7,000 WERE PAID TO EMPLOYEES FOR AUGUST J. A BILL FOR P 2,000 WAS RECEIVED FROM A LOCAL UTILITY COMPANY FOR THE MONTH OF AUGUST K. P 20,000 CASH WAS LOANED TO ANOTHER COMPANY, EVIDENCED BY A NOTE RECEIVABLE. L. THE CORPORATION PAID ITS SHARE HOLDERS A CASH DIVIDEND OF P 1,000. REQUIRED: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet

WINTER WHOLESALE COMPANY BEGAN OPERATIONSON AUGUST, 2021. THE FOLLOWING TRANSACTIONS TOOK PLACE DURING THE MONTH OF AUGUST A. OWNERS INVESTED P 50,000 CASH IN THE CORPORATION IN EXCHANGE FOR 5,000 SHARES OF EQUITY CAPITAL B. EQUIPMENT WAS PURCHASED FOR P 20,000 CASH C. ON THE FIRST DAY OF AUGUST, P 6,000 RENT ON A BUILDING WAS PAID FOR THE MONTHS OF AUGUST AND SEPTEMBER. D. MERCHANDISE COSTING P 38,000 WAS PURCHASED ON ACCOUNT. THE COMPANY USES PERPETUAL INVENTORY SYSTEM. E. P 30,000 WAS BORROWED FROM A LOCAL BANK, AND A NOTE PAYABLE WAS SIGNED F. CREDIT SALES FOR THE MONTH WERE P 40,000. THE COST OF MERCHANDISE SOLD WAS P 22,000. G. P 15,000 WAS COLLECTED ON ACCOUNT FROM CUSTOMERS H. P 20,000 WAS PAID ON ACCOUNT TO SUPLIERS OF MERCHANDISE I. SALARIES OF P7,000 WERE PAID TO EMPLOYEES FOR AUGUST J. A BILL FOR P 2,000 WAS RECEIVED FROM A LOCAL UTILITY COMPANY FOR THE MONTH OF AUGUST K. P 20,000 CASH WAS LOANED TO ANOTHER COMPANY, EVIDENCED BY A NOTE RECEIVABLE. L. THE CORPORATION PAID ITS SHARE HOLDERS A CASH DIVIDEND OF P 1,000. REQUIRED: 1.PREPARE A JOURNAL ENTRY FOR EACH TRANSACTION 2. PROFIT AND LOSS STATEMENT 3. Prepare Balance Sheet

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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During 2021, your company completed the following summarized transactions. Prepare journal entries for the following events. 1. Your company sold $60,000 of merchandise to various customers for $150,000 on account, terms 2/10, n/30. Assume your company uses a PERIODIC inventory system and the GROSS method of discounts. 2. Accounts from transaction “#1." above for which the original amount was $70,000 were collected within the 10 day period. 3. Accounts from transaction "#1." above for which the original amount was $40,000 were collected 27 days after the sale. 4. One customer from transaction “#1" above returned a product which cost $410 and had been sold for $1,000. This customer had NOT paid his account so you credited his account. On December 1, 2021, you loaned $80,000 to another company and received a nine- month, 6% note. 5. 6. Your company wrote off $2,100 of past due accounts receivable. 7. At the end of the year, your company estimated bad debts would be 1% of GROSS sales for…
Jaded Corporation has the following account balances for the year-ended December 31, 2024. K In addition, the 12/31/23 balances for Accounts Receivable and Inventory are $45,000 and $95,000, respectively. dr Accounts Receivable Inventory Purchases Freight-In Purchases Discount Purchases Returns Purchase Allowances 32,000 20,000 480,000 5,000 Sales Revenue Interest Revenue Sales Returns & Allowances Sales Discounts Selling Expenses General & Administrative Exp 15,000 30,000 Other Operating Expenses Freight-Out 9,000 Interest Expense 2,000 Loss on Sale of Truck 5,000 What is the operating income for the period? OA. $1,146,000 OB. $1,167,000 OC. $1,156,000 O D. $1,176,000 $8,000 50,000 10,000 cr $ 4,000 3,000 1,000 1,850,000 1,000
Statsen Company, which prepares financial reports at the end of the calendar year, established a branch on July 1, 2020. The following transactions occurred during the formation of the branch and its first six months of operations, ending December 31, 2020. 1. The Home Office sent $35,000 cash to the branch to begin operations. 2. The Home Office shipped inventory to the branch. Intercompany billings totaled $75,000, which was the Home Office's cost. 3. The branch acquired merchandise display equipment which cost $15,000 on July 1, 2020. (Assume that branch fixed assets are carried on the home office books). 4. The branch purchased inventory costing $53,750 from outside vendors on account. 5. The branch had credit sales of $106,250 and cash sales of $43,750. Requirements: 1. Prepare journal entries in the books of the home office and in the books of the branch office for the above transaction
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Quimby Sports Authority purchased inventory costing $30,000 by signing a 6% short-term, one-year note payable. The purchase occurred on July 31, 2021. Quimby pays annual interest each year on July 31. Read the requirements. First, journalize the company's (a) purchase of inventory. (Record debits first, then credits Exclude explanations from journal entries.) Journal Entry Jul Date 2021 31 Accounts Print Debit Requirements Joutnalize the company's (a) purchase of inventory; (b) accrual of interest expense on April 30, 2022, which is the company's fiscal year-end; and (c) payment of the note plus interest on July 31, 2022. (Round your answers to the nearest whole number) (d) Show what the company would report for liabilities on its balance sheet at April 30, 2022, and on its income statement for the year ended on that date Done - X Credit Clear all Check answer
The Marchetti Soup company entered into the following transactions during the month of June:(1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system): (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000 (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $ 145,000, pass journals.
The following are extracted from the books and records of ABC Corp. And its branch. The balances are at December 31, 2021, the third year of the corporation existence. BRANCH BOOKS HOME OFFICE BOOKS Allowance for Overvaluation Sales Expenses Shipment from Home Office 72,500 600,000 200,000 444,000 The branch acquires all of it merchandise from the Home Office. The inventories of the Branch at bilied prices are as follows: January 1, 2021, P47,717.18 and December 31, 2021, P84,000. How much is the adjusted branch profit?
The following information are extracted from the books and records ofthe Company and its branch. The balances are at December 31,2021, the third year ofthe corporation's existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed Home Office Books Sales Expenses Shipments from home office Allowance for overvaluation of branch inventory Branch Books P 720,000 240,000 432,000 P 87,000
The Marchetti Soup Company entered into the following transactions during the month of June ( purchansed wwentory on account for $205,000 (assume Marchetti uses a perpetual inventory system), (2) paid $52.000 in salanes to employees tor work pertomed dunng the month; (3) sold merchandise that cost $144,000 to credit customers for $260,000, (4) collected $240,000 in cash trom ereda customers, and (5) paid suppliers of inventory $185,000. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the accounts in zero except for cash, accounts receivable, and accounts payable that had opening balances of $71,000, $55,000, anvd $34,000, respectively. (Enter the transaction number in the column next to the amount.) Beg bal Beg bat End bal. End. bal. Inventory Accounts payable Beg. bal Beg bal End, bal End. bal.
On, November 1, 2025, Ashton, Inc. purchased merchandise inventory for $38,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 9%. The journal entry to record the accrued interest expense on December, 31, 2025 would be:
Hydra Company’s balance sheet at December 31, 2021, is presented below Cash $ 25,400 Accounts Payable $ 13,100 Inventory 28,060 Interest Payable 210 Prepaid Insurance 6280 Notes Payable 43,000 Equipment 32,440 Owner’s Capital 35,870 $ 92,180 $ 92,180 During January 2022, the following transactions occurred. ( Hydra Company uses the perpetual inventory system.) 1. Hydra paid $ 210 interest on the note payable on January 1, 2022. The note is due December 31, 2023. 2. Hydra purchased $ 230,768 of inventory on account. 3. Hydra sold for $ 389,200 cash, inventory which cost $ 231,200. Hydra also collected $ 25,170 in sales taxes. 4. Hydra paid $ 200,400 in accounts payable. 5. Hydra paid $ 14,950 in sales taxes to the state. 6. Paid other operating expenses of $ 28,400. 7. On January 31, 2022, the payroll for the month consists of salaries and wages of $ 65,000. All salaries and wages are subject…
the Company and its branch. The balances are at December 31,2021, the third year of the corporation's existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,0o00 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed * Home Office Books Branch Books P 720,000 240,000 Sales Expenses Shipments from home office Allowance for overvaluation of branch inventory 432,000 P 87,000