College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 15, Problem 2.6COP
Comprehensive Problem 2:
Accounting Cycle with Subsidiary Ledgers, Part 2
During the month of January 20-2, TJ’s Specialty Shop engaged in the following transactions:
Jan. 1 Sold merchandise on account to Anne Clark, $3,000, plus tax of $150. Sale No. 643.
2 Issued Check No. 818 to Nathen Co. in payment of January 1 balance of $800, less 2% discount.
Jan. 3 Purchased merchandise on account from West Wholesalers, $1,500. Invoice No. 678, dated January 3, terms 2/15, n/30.
4 Purchased merchandise on account from Owen Enterprises, $2,000. Invoice No. 767, dated January 4, terms 2/10, n/30.
4 Issued Check No. 819 in payment of phone expense for the month of January, $180.
8 Sold merchandise for cash, $3,600, plus tax of $180.
9 Received payment from Lucy Greene in full settlement of account, $1,491.
10 Issued Check No. 820 to West Wholesalers in payment of January 1 balance of $1,200.
12 Sold merchandise on account to Martha Boyle, $1,000, plus tax of $50. Sale No. 644.
12 Received payment from Anne Clark on account, $2,100.
12 Issued Check No. 821 in payment of wages (Wages Expense) for the two-week period ending January 11, $1,100.
13 Issued Check No. 822 to Owen Enterprises in payment of January 4 purchase. Invoice No. 767, less 2% discount.
13 Martha Boyle returned merchandise for a credit, $800, plus sales tax of $40.
17 Returned merchandise to Evans Essentials for credit, $300.
22 Received payment from John Dempsey on account, $2,121.
26 Issued Check No. 823 in payment of wages (Wages Expense) for the two-week period ending January 25, $1,100.
27 Issued Check No. 824 to KC Power & Light (Utilities Expense) for the month of January, $630.
27 Sold merchandise on account to John Dempsey, $2,000, plus tax of $100. Sale No. 645.
Late in January, TJ’s agreed to sell the business to a competitor. To agree on a selling price, financial statements are needed as of January 31 and for the month of January 20-2. To prepare these financial statements, TJ’s must perform the same procedures it normally does at year-end.
At the end of January, the following adjustments (a)–(j) need to be made:
(a, b) Merchandise inventory as of January 31, $19,000.
(c, d, e) Jones estimates that customers will be granted $500 in refunds of this month’s sales in subsequent months, and the merchandise expected to be returned will have a cost of $360.
(f) Unused supplies on hand, $115.
(g) Unexpired insurance on January 31, $968.
(h)
(i) Depreciation expense on the store equipment for the month, $38.
(j) Wages earned but not paid as of January 31, $330.
6. Journalize and
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Date
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6. Purchased materials on account, $5,000.
7. Used $2,000 in direct materials and $700 in indirect materials in production.
8. Incurred $9,000 in labor costs, of which 60% was direct labor.
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Chapter 15 Solutions
College Accounting, Chapters 1-27
Ch. 15 - LO1 A multiple-step form of income statement...Ch. 15 - Prob. 2TFCh. 15 - Prob. 3TFCh. 15 - Prob. 4TFCh. 15 - LO4 Accounts receivable turnover is the number of...Ch. 15 - Prob. 1MCCh. 15 - Prob. 2MCCh. 15 - Prob. 3MCCh. 15 - Prob. 4MCCh. 15 - Prob. 5MC
Ch. 15 - Prob. 1CECh. 15 - Prob. 2CECh. 15 - Prob. 3CECh. 15 - Prob. 4CECh. 15 - Prob. 5CECh. 15 - Prob. 6CECh. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Describe how to calculate the following ratios (a)...Ch. 15 - Where is the information obtained that is needed...Ch. 15 - Explain the function of each of the four closing...Ch. 15 - What is the purpose of a post-closing trial...Ch. 15 - What is the primary purpose of reversing entries?Ch. 15 - What is the customary date for reversing entries?Ch. 15 - What adjusting entries should be reversed?Ch. 15 - REVENUE SECTION. MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial statements...Ch. 15 - CLOSING ENTRIES Using the spreadsheet and...Ch. 15 - REVERSING ENTRIES From the spreadsheet used in...Ch. 15 - ADJUSTING, CLOSING, AND REVERSING ENTRIES Prepare...Ch. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the spreadsheet and financial...Ch. 15 - END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND...Ch. 15 - REVENUE SECTION, MULTIPLE-STEP INCOME STATEMENT...Ch. 15 - COST OF GOODS SOLD SECTION, MULTIPLE-STEP INCOME...Ch. 15 - MULTIPLE-STEP INCOME STATEMENT Use the following...Ch. 15 - FINANCIAL RATIOS Based on the financial...Ch. 15 - CLOSING ENTRIES Using the spreadsheet and...Ch. 15 - Prob. 6SEBCh. 15 - Prob. 7SEBCh. 15 - INCOME STATEMENT, STATEMENT OF OWNERS EQUITY, AND...Ch. 15 - FINANCIAL RATIOS Use the work sheet and financial...Ch. 15 - END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND...Ch. 15 - Prob. 1MYWCh. 15 - Dominique Fouque owns and operates Dominiques Doll...Ch. 15 - Prob. 1CPCh. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Prob. 2.1COPCh. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Prob. 2.4COPCh. 15 - Prob. 2.5COPCh. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Comprehensive Problem 2: Accounting Cycle with...Ch. 15 - Prob. 2.8COP
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