![Horngren's Accounting (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134486444/9780134486444_largeCoverImage.gif)
Concept explainers
Completing the accounting cycle from
Learning Objectives 1, 2,3,4,5
Ending Capital $75,095
On December 1, Bob Waldo began an auto repair shop, Waldo's Quality Automotive. The following transactions occurred during December:
Dec1 Wilton contributed JS3.000 with to the business in exchange for capital,
1 Purchased $14.400 of equipment paying cash.
1 Paid $3,600 for a twelve−month insurance policy starting on December 1.
9 Paid $15,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $2,200.
19 Borrowed $24,000 from the bank for business use.Wilson signed a notepayable to the ban k in the name of the business. The note is due in five years.
22 Paid $2,000 for advertising expenses
26 Paid $1,000 on account.
28 The business received a bill for utilities to be paid in January. $260.
91 Revenues earned during the month included $18,500 cash and $5,800 on account.
31Paid employees' salaries $3,900 and building rent $800. Record as a compound entry.
3t The business received $1,380 for auto screening services to be performed neat month.
31 Wilson withdrew cash of $5,000,
The business uses the following accounts: Cash;
Adjustment data:
- Office Supplies used during the month, $1,8OO.
- Depreciation for the month, $200.
- Onemonthinsurance has expired.
- Accrued Interest Expense,$75.
Requirements
- Prepare the journal entries, and post to the T-accounts.
- Prepare an unadjusted trial balance.
- Complete the worksheet forthe month ended December 31,2018(optional).
A Prepare the
5. Prepare an adjusted trial balance.
c. Prepare the income statement, the statement of owner's equity, and the classified
7. Prepare the closing entries, and post to the “-accounts.
B. Prepare a post-closing trial balance.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 4 Solutions
Horngren's Accounting (12th Edition)
- MANAGEMENT DEPARTMENT, FACULTY PROBLEM On January 1 of the current year, Juan David opened the “ J.D Men's Wear Shop", and during the month, the following transactions were completed: Jan. 1 Juan David invested cash P 80,000 in the business. He bought two sewing machines amounting P 30,000 each from Patio Merchandising, the he gave P15,000 down and the balance is payable within 60 days. Paid a three month rental of the shop, P30,000. This was charged to 1 1 prepaid Rent account. 1 Paid a one year insurance policy, P 5,700. Bought sewing tools P 5,900 and sewing supplies P 2,700 from Jomar Trading on credit. Received P 1,200 from customer for a short delivered. Billed to Maricris Acosta, P 5,000 for two-pair of pants and polo barong 7 delivered. 10 Purchased clothing materials from Baclaran Market and paid P 15,000 cash. 13 Received P 12,500 from various customers for pants and barong made and delivered. 14 Gave Patio Merchandising P 15,000 and issued a 60-day, 6% note for the balance.…arrow_forwardTown Center Tours provides historicalguided tours of several U.S. cities. The company charges $175 per person for the eight-hour tour.For groups of four or more, a group discount of $25 per person is offered. Here is a selection oftransactions during June: Requirement1. Journalize all transactions for Town Center Tours.arrow_forwardREQUIRED: JOURNAL ENTRIES AND TRIAL BALANCEarrow_forward
- Learning Tasks / Exercises ACTIVITY 1: Look at It At the end of the first month of operations for Juan's Service Company, the business had the following accounts: Cash, Php19,000: Prepaid Rent, Php500: Equipment, Php5,000 and Accounts Payable Php2,000. By the end of the month, Jackson's had earned Php20,000 of Revenues, Php1,000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the net income to be reported by the company for this first month. Show your solutions: Explain your answerarrow_forward(Learning Objectives 1, 3: Apply GAAP for proper revenue recognition; accountfor sales discounts) At Hometown Arts, gross sales for the month included:Sales on account (2/10, n/30) $150,000Credit card sales (3% credit card fee) $200,000Half of the sales on account were paid within the discount period; the other accounts were paidin full by the end of the month.Requirements1. Journalize the sales on account, the credit card sales, and the cash payments on accountreceived during the month.2. Calculate the net sales revenue for the montharrow_forwardLearning Task 2: Mr. Santos opened a barber shop called "Gupitan Shop" on February 1, 20X3. The following were the transactions during the first week of operations: February Transactions 1 Provided P300,000 cash as initial investment to the business. 2 Acquired furniture and fixture for P200,00 cash. 4 Purchased supplies for P30,000 cash. Rendered services worth P20,000 on cash basis 7 Paid P10,000 salaries of employees Requirement: A. Provide the journal entries B. Post the entries to the ledger (use T-accounts) C. Prepare the unadjusted trial balancearrow_forward
- (Learning Objectives 1, 3: Apply GAAP for proper revenue recognition; accountfor sales discounts) At Uptown Arts, gross sales for the month included:Sales on account (2/10, n/30) $350,000Credit card sales (2% credit card fee) $250,000Half of the sales on account were paid within the discount period; the other accounts were paidin full by the end of the month.Requirements1. Journalize the sales on account, the credit card sales, and the cash payments on accountreceived during the month.2. Calculate the net sales revenue for the month.arrow_forward(Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales returns and allowances) Treno Industries sells to wholesalers. Customers must paywithin 15 days or at the point of sale using a credit card. Treno’s cost of goods sold is 40% ofsales. The company had the following selected transactions during March:March 3 Sold $15,000 of merchandise to Whittier Company on account.Sold $2,000 of merchandise to Yeller Corp., who paid by credit card. The creditcard company charges Treno a fee of 2% on credit card sales.March 4March 15 Whittier Company paid the balance of what it owed for the purchase on March 3.March 19 Sold $22,000 of merchandise to Zucca Co. on account.March 21 Zucca reported that some of the merchandise received was scratched and returned$1,000 worth of merchandise to Treno.March 23 Sold $32,000 of merchandise to Nichols Co. on account.March 25 Zucca paid the balance of what it owed for the purchase on March 19.March 31 Treno made the adjusting…arrow_forwardSearth Summer 19/201 Sport Direct, a sport stuff shop. At the beginning of the current season, the ledger of Sport Direct shop showed cash $2,200, Inventory $1,800, and Share capital - Ordinary $4,000. The following transactions were completed during April NOTE: Answer questions from 1 - 25 by using these information. April 1) Purchased Truck costing $9,600 by signing $9,600, 12%, 6-month notes payable. April 4) Purchased racquets and balls from Jay-Mac Co. for $760, FOB Shipping point, terms 2/10,n/30. April 5) Purchased Building for $48,000 cash, April 6) Paid Freight on purchase from Jay-Mac Co. for $40 cash. April 7) Purchased Supplies for $2,500 cash. April 8) Sold Merchandise to members for $1,150 on account terms n/30. The merchandise sold had a cost of $790 April 9) Paid office rent $1,500 cash. April 10) Returned merchandise for Jay-Mac Co. for $60, for a racquets that were defective, April 11) Purchased tennis shoes from u Sports for $420 cash. April 13) Paid Jay-Mac Co. in…arrow_forward
- Notes Receivable Crowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $87,600, $82,200, $102,000, and $62,400. Amber secured this amount by signing a note bearing 10% interest on June 1. Required: Question Content Area 1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area 2. Determine how much interest Crowne will receive if the note is repaid on December 1.$fill in the blank 59d6dd028fbe01b_1 Question Content Area 3. Prepare Crowne’s journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank. blank - Select - - Select…arrow_forwardthanksarrow_forwardREQUIREMENT: JOURNAL ENTRIESarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCentury 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)