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Concept Introduction:
Preparing the journal entries is nothing but analyzing the transactions and identification of the accounts that are affected by it , finding it out its nature and at last determine whether it should be debited or credited .
Requirement 1:
To Prepare Prepare journal entries to record each of the January through March transactions
Concept Introduction:
General Ledger:
A ledger that generally contains all the accounts for the transactions recorded that is related to the company and helps in preparing the financial reports is known as General ledger.
Requirement 2:
To Post:
Posting of journal entries to the general ledger account.
Concept Introduction:
6-Column Worksheet:
10-column worksheet consists of balances of all the accounts prepared during an accounting period columns namely unadjusted
Requirement 3:
To Prepare:
Preparation of 6-column worksheet
Concept Introduction:
Single Step Income Statement:
An income statement that requires only one subtraction to arrive the net income is known as Single step income statement.
Multiple Step Income Statement:
An income statement that has to segregate all the revenue and expenses based on their nature like operating, non-operating revenue and expenses part to arrive the net income is known as multiple step income statement.
Requirement 4:
To Prepare:
Prepare Income statement using; (a) Single step format (b) Multiple step format.
Concept Introduction:
Statement of Owner's EquityThe statement of owner's equity shows the change of equity balance over a period of time.
Requirement 5
To Prepare:
Prepare a statement of owner's equity for the three months ended March 31, 2020
Concept Introduction:
Classified
Requirement 6
To Prepare:
Prepare a classified balance sheet as of March 31, 2020.
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Chapter 5 Solutions
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- What is this firm debt equity ratio?arrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. Question:arrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: 1. Assume there is a 7% sales tax rate in Ohio, where the customer who ordered the boots is located. The sales tax on the order would be $7.63, which L.L. Bean adds to the invoice total. Is the $7.63 added to L.L. Bean's sales revenue? Why or why not?arrow_forward
- Expert of general accounting answerarrow_forwardCalculate the net incomearrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question:arrow_forward
- The standard rate per direct labor hour shouldarrow_forwardL.L. Bean operates two factories that produce its popular Bean boots (also known as "duck boots") in its home state of Maine. Since L.L. Bean prides itself on manufacturing its boots in Maine and not outsourcing, backorders for its boots can be high. In 2014, L.L. Bean sold about 450,000 pairs of the boots. At one point during 2014, it had a backorder level of about 100,000 pairs of boots. L.L. Bean can manufacture about 2,200 pairs of its duck boots each day with its factories running 24/7. In 2015, L.L. Bean expects to sell more than 500,000 pairs of its duck boots. As of late November 2015, the backorder quantity for Bean Boots was estimated to be about 50,000 pairs. Question: 1. Assume that 5% of the L.L. Bean boots are returned by customers for various reasons. L. Bean has a 100% refund policy for returns, no matter what the reason. What would the journal entry be to accrue L.L. Bean's sales returns for this one pair of boots? (Note: L.L. Bean most likely will make…arrow_forwardanswerarrow_forward
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