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Business Accounting MYLAB ACCOUNTING WITH PEARSON ETEXT --

(1) To state : T-Accounts Introduction: The financial statements of a company include the balance sheet , income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Cash Beg Bal. $ 457,000 Accounts Receivables Beg Bal. 0 Merchandise Inventory Beg Bal. $ 126,000 Office Supplies Beg Bal. $ 275 Warehouse Supplies Beg Bal. $ 350 Land Beg Bal. $ 20,000 Building Beg Bal. $ 780,000 Office Furniture and Equipment Beg Bal. $ 125,000 Warehouse Fixtures Beg Bal. $ 260,000 Accumulated Depreciation Beg Bal. $ 194,000 Account Payable Beg Bal. $ 0 Common Stock Beg Bal. $ 100,000 Retained earnings Beg Bal. $ 298,925 Dividends Beg Bal. $ 0 Sales Revenue Beg Bal. $ 2,654,150 Cost of Goods Sold Beg Bal. $ 1,061,450 Salaries expense - Selling Beg Bal. $ 270,000 Utilities Expense - Selling Beg Bal. $ 32,000 Supplies Expense - Selling Beg Bal. $ 0 Depreciation Expense - Selling Beg Bal. $ 0 Salaries Expense − Administrative Beg Bal. $ 90,000 Utilities Expense - Administrative Beg Bal. $ 25,000 Supplies Expense - Administrative Beg Bal. $ 0 Depreciation Expense - Administrative Beg Bal. $ 0 (2) To state : Preparation of inventory records Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Desk Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 2,500 $ 8 $ 20,000 2,500 $ 8 $ 20,000 Oct.1 5,000 9 45,000 2,500 8 5,000 9 65,000 15 1,000 8 8,000 1,500 8 5,000 9 57,000 Nov. Nov. 1 1,500 8 1,500 9 25,500 3,500 9 31,500 5 5,000 $10 $ 50,000 3,500 9 5,000 10 81,500 15 2,000 9 18,000 1,500 9 5,000 10 63,500 Dec. Dec. 27 1,500 9 3,000 10 43,500 2,000 10 20,000 Table Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 3,000 $18 $ 54,000 3,000 $18 $ 54,000 Oct.1 7,500 19 1,42,500 3,000 18 7,500 19 1,96,500 12 3,000 $18 1,000 19 $ 73,000 6,500 19 1,23,500 28 3,500 19 66,500 3,000 19 57,000 Nov. Nov. 5 10,000 $21 $ 210,000 3,000 19 10,000 21 2,67,000 18 2,000 19 38,000 1,000 19 10,000 21 2,29,000 Dec. Dec. 27 1,000 19 4,000 21 103,000 6,000 21 1,26,000 Floor Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 2,000 $26 $ 52,000 2,000 $26 Oct.1 2,500 25 62,500 2,500 25 1,14,500 28 1,500 $26 39,000 500 26 2,500 25 75,500 Nov. Nov. 5 5,000 $27 $ 135,000 500 26 2,500 25 5,000 27 210,500 18 500 26 1,000 25 1,500 25 50,500 5,000 27 1,60,000 Introduction: Journal entry is the first step of accounting to recording day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business. To record: The journal entries. (3) Date Particular Debit Credit 2024 Oct 1 Merchandise Inventory $ 250,000 Accounts Payable − Blue Ridge Lights $ 250,000 (Being inventory purchased) Oct 12 Accounts Receivables − Atlas home furnishing 180,000 Sales revenue 180,000 (Being inventory sold) Oct 12 Cost of goods sold 73,000 Merchandise Inventory 73,000 (Being amount of inventory adjusted by cost) Oct 15 Accounts Receivables − Hiawassee Office Supply 20,000 Sales revenue 20,000 (Being inventory sold) Oct 15 Cost of goods sold 8,000 Merchandise Inventory 8,000 (Being amount of inventory adjusted by cost) Oct 20 Cash 180,000 Accounts Receivables − Atlas home furnishing 180,000 (Being amount due received) Oct 23 Cash 20,000 Accounts Receivables − Hiawassee Office Supply 20,000 (Being amount due received) Oct 28 Accounts Receivables − Parkway Home Stores 255,000 Sales Revenue 255,000 (Being inventory sold) Oct 28 Cost of goods sold 105,500 Merchandise Inventory 105,500 (Being amount of inventory adjusted by cost) Oct 30 Accounts Payable - Blue Ridge Lights 250,000 Cash 250,000 (Being amount due paid) Oct 31 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Cash 40,000 (Being expenses due paid) Oct 31 Utilities Expense − Selling 1,500 Utilities Expense − Administrative 1,000 Cash 2,500 (Being expenses due paid) Nov 1 Accounts Receivables − Hiawassee Office Supply 60,000 Sales Revenue 60,000 (Being inventory sold) Nov 1 Cost of goods sold 25,500 Merchandise Inventory 25,500 (Being amount of inventory adjusted by cost) Nov 5 Merchandise Inventory 395,000 Accounts Payable − Blue Ridge Lights 395,000 (Being inventory purchased) Nov 5 Cash 255,000 Accounts Receivables − Parkway Home Stores 255,000 (Being amount due received) Nov 8 Cash 60,000 Accounts Receivables − Hiawassee Office Supply 60,000 (Being amount due received) Nov 10 Supplies Expense − Selling 675 Supplies Expense − Administrative 325 Cash 1,000 (Being expenses due paid) Nov 15 Accounts Receivables − Anderson Office Supplies 40,000 Sales Revenue 40,000 (Being inventory sold) Nov 15 Cost of goods sold 18,000 Merchandise Inventory 18,000 (Being amount of inventory adjusted by cost) Nov 18 Accounts Receivables − Go-Mart Discount Stores 220,000 Sales Revenue 220,000 (Being inventory sold) Nov 18 Cost of goods sold 88,500 Merchandise Inventory 88,500 (Being amount of inventory adjusted by cost) Nov 28 Cash 220,000 Accounts Receivables − Go-Mart Discount Stores 220,000 (Being amount due received) Nov 30 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Utilities Expense − Selling 1,602 Utilities Expense − Administrative 1,068 Cash 42,670 (Being expenses due paid) Dec 5 Accounts Payable − Blue Ridge Lights 395,000 Cash 395,000 (Being amount due paid) Dec 15 Cash 40,000 Accounts Receivables − Anderson Office Supplies 40,000 (Being amount due received) Dec 15 Dividends 50,000 Cash 50,000 (Being dividends paid) Dec 27 Accounts Receivables − Atlas Home Furnishing 315,000 Sales Revenue 315,000 (Being inventory sold) Dec 27 Cost of goods sold 146,500 Merchandise Inventory 146,500 (Being amount of inventory adjusted by cost) Dec 31 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Utilities Expense − Selling 1,920 Utilities Expense − Administrative 1,280 Cash 43,200 (Being expenses due paid) (4) To prepare : Posting transactions to the general ledger. Introduction: Ledger is a book that contains a classified and permanent record of all the transactions of a business. It is the accounting record of all financial transactions of a company. It should be accurate and up to date in order for the statements to be reliable. Cash Beg Bal. $ 457,000 $ 250,000 Oct 30 Oct 20 180,000 42,500 31 23 20,000 1,000 Nov 10 Nov 5 255,000 42,670 30 8 60,000 395,000 Dec 5 28 220,000 50,000 Dec 15 Dec 15 40,000 43,200 Dec 31 Balance $ 407,630 Accounts Receivables Beg Bal. 0 $ 180,000 Oct 20 Oct 12 $ 180,000 20,000 23 15 20,000 255,000 Nov. 5 28 255,000 60,000 8 Nov 01 60,000 220,000 28 15 40,000 40,000 Dec 15 18 220,000 Dec 27 315,000 Balance $ 315,000 Merchandise Inventory Beg Bal. $ 126,000 $ 73,000 Oct 12 Oct 1 250,000 8,000 15 Nov 5 395,000 105,500 28 25,500 Nov. 1 18,000 15 88,500 18 146,500 Dec 27 Balance $ 306,000 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance 600 Warehouse Supplies Beg Bal. $ 350 Nov 10 675 Balance 1,025 Account Payable Beg Bal. $ 0 Oct 30 $ 250,000 $ 250,000 Oct 1 Dec 5 395,000 395,000 Nov 5 Dividends Beg Bal. $ 0 Dec 15 50,000 Sales Revenue Beg Bal. $ 2,654,150 180,000 Oct 12 20,000 15 255,000 28 60,000 Nov 1 40,000 15 220,000 18 315,000 Dec 27 Balance $ 3,744,150 Cost of Goods Sold Beg Bal. $ 1,061,450 Oct 12 73,000 15 8,000 28 105,500 Nov 1 25,500 15 18,000 18 88,500 Dec 27 146,500 Balance $ 1,526,450 Salaries expense - Selling Beg Bal. $ 270,000 Oct 31 30,000 Nov 30 30,000 Dec 31 30,000 Balance $ 360,000 Utilities Expense - Selling Beg Bal. $ 32,000 Oct 31 1,500 Nov 30 1,602 Dec 31 1,920 Balance $ 37,022 Warehouse supplies Beg Bal. $ 350 Nov 10 675 Balance $ 1,025 Salaries Expense − Administrative Beg Bal. $ 90,000 Oct 31 10,000 Nov 30 10,000 Dec 31 10,000 Balance $ 120,000 Utilities Expense - Administrative Beg Bal. $ 25,000 Oct 31 1,000 Nov 30 1,068 Dec 31 1,280 Balance $ 28,348 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance $ 600 (5) To prepare : Adjusting entries for the period and post them to the ledger. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Date Particular Debit ($) Credit ($) 2024 Dec 31 Depreciation Expense − Selling 36,375 Depreciation Expense − Administrative 12,125 Accumulative Depreciation 48,500 (Being adjustment entry passed) Dec 31 Supplies Expense − Selling 375 Warehouse Supplies 375 (Being adjustment entry passed) Supplies Expense − Office 400 Office Supplies 400 (Being adjustment entry passed) Dec 31 Cost of goods sold 205 Merchandise Inventory 205 (Being adjustment entry passed) Accumulated Depreciation Beg Bal. $ 194,000 48,500 Dec 31 Balance $ 242,500 Supplies Expense - Selling Beg Bal. $ 0 Dec 31 375 Depreciation Expense - Selling Beg Bal. $ 0 Dec 31 36,375 Supplies Expense - Administrative Beg Bal. $ 0 Dec 31 400 Depreciation Expense - Administrative Beg Bal. $ 0 Dec 31 12,125 Warehouse supplies Beg Bal. $ 350 Nov 10 675 Balance $ 1,025 375 Adj. Balance $ 650 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance $ 600 400 Adj. Balance $ 200 Cost of Goods Sold Beg Bal. $ 1,061,450 Oct 12 73,000 Oct 15 8,000 Oct 28 105,500 Nov 1 25,500 Nov 15 18,000 Nov 18 88,500 Dec 27 146,500 Balance $ 1,526,450 Adj 205 Balance $ 1,526,655 Merchandise Inventory Beg Bal. $ 126,000 $ 73,000 Oct 12 Oct 1 250,000 8,000 Oct 15 Nov 5 395,000 105,500 Oct 28 25,500 Nov. 1 18,000 Nov 15 88,500 Nov 18 146,500 Dec 27 Balance $ 306,000 205 Adj. Balance $ 305,795 (6) To prepare : Adjusted Trial Balance Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Adjusted Trial Balance D L Company for the year ended December 31, 2024 Account Name Debit Credit Cash 407,630 Accounts Receivables 315,000 Merchandise Inventory 305,795 Office Supplies 200 Warehouse Supplies 650 Land 20,000 Building 780,000 Office Furniture & Fixtures 125,000 Warehouse Fixtures 260,000 Accumulated Depreciation 242,500 Accounts Payable 0 Common Stock 100,000 Retained earnings 298,925 Dividends 50,000 Sales revenue 3,744,150 Cost of goods sold 1,526,655 Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 Total $ 4,385,575 $ 4,385,575 (7) To prepare : Summary of Inventory. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. DESK Lamps TABLE Lamps FLOOR Lamps Number of lamps Dollar Amount Number of lamps Dollar Amount Number of lamps Dollar Amount Beginning Balance 2,500 $ 20,000 3,000 $ 54,000 2,000 $ 52,000 Add: Purchases 10,000 $ 95,000 17,500 $ 352,500 7,500 $ 197,500 Less: COGS 10,510 95,100 14,505 $ 280,605 3,500 $ 89,500 Ending Balance 1,990 $ 19,900 5,995 $ 125,895 6,000 $ 160,000 (8) To prepare : Income statement and balance sheet. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Income Statement Particular Amount Sales revenue $ 3,744,150 Less: Cost of goods sold 1,526,655 Gross profit 2,217,495 Less: Operating Expenses Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 594,645 Net Income $ 1,622,850 Statement of Retained Earnings Retained Earnings Statement Particular Amount Opening Balance $ 298,925 Less: Dividend $ 50,000 Add: Net Income 1,622,850 1,572,850 Ending Balance $ 1,871,775 Balance Sheet Liabilities and capital Amount Assets Amount Liabilities: Current Assets: Accounts Payable $ 0 Cash $ 407,630 Accumulated Depreciation 242,500 Accounts Receivables 315,000 Total Liabilities $ 242,500 Merchandise Inventory 305,795 Office Supplies 200 Capital: Warehouse Supplies 650 Common Stock 100,000 Total Current Assets $ 1,029,275 Retained earnings 1,871,775 Total Capital $ 1,971,775 Fixed Assets: Land 20,000 Building 780,000 Office Furniture and equipment 125,000 Warehouse Fixtures 260,000 Total Fixed Assets $ 1,185,000 Total Liabilities and capital $ 2,214,275 Total Assets $ 2,214,275 (9) To prepare : Calculation of Ratios. Introduction: Accounting ratios help in analyzing the profitability, liquidity as well as the financial stability of the organization and also assume the risk of the markets operating. Gross Profit Ratio = Gross profit/Net Sales × 100 = $2,217,495/$3,744,150 × 100 = 59.23% Inventory turnover = Cost of Goods sold/Average Inventory Average inventory = $126,000+$305,795/2 = $215,898 = $1,526,655/$215,898 = 7.07 Day’s sales in inventory = 365/Inventory Turnover = 365/7.07 = 51.63 days (10.) To prepare : Closing entries for the period. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Date Particular Debit Credit 2024 Dec 31 Sales revenue $ 3,744,150 Income Summary $ 3,744,150 (To close the sales revenue account) Dec 31 Income Summary 2,120,925 Cost of goods sold 1,526,655 Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 (To close the expenses account) Dec 31 Net Income $ 1,622,850 Retained Earnings $ 1,622,80 (To close the retained earnings account) Dec 31 Retained Earnings 50,000 Dividend 50,000 (To transfer to dividend account) (11) To prepare : Post closing trial balance. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Post Closing Trial Balance Account Name Debit Credit Cash $ 407,630 Accounts Receivables 315,000 Merchandise Inventory 305,795 Office Supplies 200 Warehouse Supplies 650 Land 20,000 Building 780,000 Office Furniture & Fixtures 125,000 Warehouse Fixtures 260,000 Accumulated Depreciation $ 242,500 Accounts Payable 0 Common Stock 100,000 Retained earnings 1,871,775 Total $2,214,275 $2,214,275

(1) To state : T-Accounts Introduction: The financial statements of a company include the balance sheet , income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Cash Beg Bal. $ 457,000 Accounts Receivables Beg Bal. 0 Merchandise Inventory Beg Bal. $ 126,000 Office Supplies Beg Bal. $ 275 Warehouse Supplies Beg Bal. $ 350 Land Beg Bal. $ 20,000 Building Beg Bal. $ 780,000 Office Furniture and Equipment Beg Bal. $ 125,000 Warehouse Fixtures Beg Bal. $ 260,000 Accumulated Depreciation Beg Bal. $ 194,000 Account Payable Beg Bal. $ 0 Common Stock Beg Bal. $ 100,000 Retained earnings Beg Bal. $ 298,925 Dividends Beg Bal. $ 0 Sales Revenue Beg Bal. $ 2,654,150 Cost of Goods Sold Beg Bal. $ 1,061,450 Salaries expense - Selling Beg Bal. $ 270,000 Utilities Expense - Selling Beg Bal. $ 32,000 Supplies Expense - Selling Beg Bal. $ 0 Depreciation Expense - Selling Beg Bal. $ 0 Salaries Expense − Administrative Beg Bal. $ 90,000 Utilities Expense - Administrative Beg Bal. $ 25,000 Supplies Expense - Administrative Beg Bal. $ 0 Depreciation Expense - Administrative Beg Bal. $ 0 (2) To state : Preparation of inventory records Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Desk Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 2,500 $ 8 $ 20,000 2,500 $ 8 $ 20,000 Oct.1 5,000 9 45,000 2,500 8 5,000 9 65,000 15 1,000 8 8,000 1,500 8 5,000 9 57,000 Nov. Nov. 1 1,500 8 1,500 9 25,500 3,500 9 31,500 5 5,000 $10 $ 50,000 3,500 9 5,000 10 81,500 15 2,000 9 18,000 1,500 9 5,000 10 63,500 Dec. Dec. 27 1,500 9 3,000 10 43,500 2,000 10 20,000 Table Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 3,000 $18 $ 54,000 3,000 $18 $ 54,000 Oct.1 7,500 19 1,42,500 3,000 18 7,500 19 1,96,500 12 3,000 $18 1,000 19 $ 73,000 6,500 19 1,23,500 28 3,500 19 66,500 3,000 19 57,000 Nov. Nov. 5 10,000 $21 $ 210,000 3,000 19 10,000 21 2,67,000 18 2,000 19 38,000 1,000 19 10,000 21 2,29,000 Dec. Dec. 27 1,000 19 4,000 21 103,000 6,000 21 1,26,000 Floor Lamp Date Purchases Cost of goods sold Inventory on hand QTY. Unit cost Amount QTY. Unit cost Amount QTY. Unit cost Amount Beg. 2,000 $26 $ 52,000 2,000 $26 Oct.1 2,500 25 62,500 2,500 25 1,14,500 28 1,500 $26 39,000 500 26 2,500 25 75,500 Nov. Nov. 5 5,000 $27 $ 135,000 500 26 2,500 25 5,000 27 210,500 18 500 26 1,000 25 1,500 25 50,500 5,000 27 1,60,000 Introduction: Journal entry is the first step of accounting to recording day-to-day transactions that a business performs. It helps in further preparing financial statements at the end of the period to assess the financial position of the business. To record: The journal entries. (3) Date Particular Debit Credit 2024 Oct 1 Merchandise Inventory $ 250,000 Accounts Payable − Blue Ridge Lights $ 250,000 (Being inventory purchased) Oct 12 Accounts Receivables − Atlas home furnishing 180,000 Sales revenue 180,000 (Being inventory sold) Oct 12 Cost of goods sold 73,000 Merchandise Inventory 73,000 (Being amount of inventory adjusted by cost) Oct 15 Accounts Receivables − Hiawassee Office Supply 20,000 Sales revenue 20,000 (Being inventory sold) Oct 15 Cost of goods sold 8,000 Merchandise Inventory 8,000 (Being amount of inventory adjusted by cost) Oct 20 Cash 180,000 Accounts Receivables − Atlas home furnishing 180,000 (Being amount due received) Oct 23 Cash 20,000 Accounts Receivables − Hiawassee Office Supply 20,000 (Being amount due received) Oct 28 Accounts Receivables − Parkway Home Stores 255,000 Sales Revenue 255,000 (Being inventory sold) Oct 28 Cost of goods sold 105,500 Merchandise Inventory 105,500 (Being amount of inventory adjusted by cost) Oct 30 Accounts Payable - Blue Ridge Lights 250,000 Cash 250,000 (Being amount due paid) Oct 31 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Cash 40,000 (Being expenses due paid) Oct 31 Utilities Expense − Selling 1,500 Utilities Expense − Administrative 1,000 Cash 2,500 (Being expenses due paid) Nov 1 Accounts Receivables − Hiawassee Office Supply 60,000 Sales Revenue 60,000 (Being inventory sold) Nov 1 Cost of goods sold 25,500 Merchandise Inventory 25,500 (Being amount of inventory adjusted by cost) Nov 5 Merchandise Inventory 395,000 Accounts Payable − Blue Ridge Lights 395,000 (Being inventory purchased) Nov 5 Cash 255,000 Accounts Receivables − Parkway Home Stores 255,000 (Being amount due received) Nov 8 Cash 60,000 Accounts Receivables − Hiawassee Office Supply 60,000 (Being amount due received) Nov 10 Supplies Expense − Selling 675 Supplies Expense − Administrative 325 Cash 1,000 (Being expenses due paid) Nov 15 Accounts Receivables − Anderson Office Supplies 40,000 Sales Revenue 40,000 (Being inventory sold) Nov 15 Cost of goods sold 18,000 Merchandise Inventory 18,000 (Being amount of inventory adjusted by cost) Nov 18 Accounts Receivables − Go-Mart Discount Stores 220,000 Sales Revenue 220,000 (Being inventory sold) Nov 18 Cost of goods sold 88,500 Merchandise Inventory 88,500 (Being amount of inventory adjusted by cost) Nov 28 Cash 220,000 Accounts Receivables − Go-Mart Discount Stores 220,000 (Being amount due received) Nov 30 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Utilities Expense − Selling 1,602 Utilities Expense − Administrative 1,068 Cash 42,670 (Being expenses due paid) Dec 5 Accounts Payable − Blue Ridge Lights 395,000 Cash 395,000 (Being amount due paid) Dec 15 Cash 40,000 Accounts Receivables − Anderson Office Supplies 40,000 (Being amount due received) Dec 15 Dividends 50,000 Cash 50,000 (Being dividends paid) Dec 27 Accounts Receivables − Atlas Home Furnishing 315,000 Sales Revenue 315,000 (Being inventory sold) Dec 27 Cost of goods sold 146,500 Merchandise Inventory 146,500 (Being amount of inventory adjusted by cost) Dec 31 Salaries Expense − Selling 30,000 Salaries Expense − Administrative 10,000 Utilities Expense − Selling 1,920 Utilities Expense − Administrative 1,280 Cash 43,200 (Being expenses due paid) (4) To prepare : Posting transactions to the general ledger. Introduction: Ledger is a book that contains a classified and permanent record of all the transactions of a business. It is the accounting record of all financial transactions of a company. It should be accurate and up to date in order for the statements to be reliable. Cash Beg Bal. $ 457,000 $ 250,000 Oct 30 Oct 20 180,000 42,500 31 23 20,000 1,000 Nov 10 Nov 5 255,000 42,670 30 8 60,000 395,000 Dec 5 28 220,000 50,000 Dec 15 Dec 15 40,000 43,200 Dec 31 Balance $ 407,630 Accounts Receivables Beg Bal. 0 $ 180,000 Oct 20 Oct 12 $ 180,000 20,000 23 15 20,000 255,000 Nov. 5 28 255,000 60,000 8 Nov 01 60,000 220,000 28 15 40,000 40,000 Dec 15 18 220,000 Dec 27 315,000 Balance $ 315,000 Merchandise Inventory Beg Bal. $ 126,000 $ 73,000 Oct 12 Oct 1 250,000 8,000 15 Nov 5 395,000 105,500 28 25,500 Nov. 1 18,000 15 88,500 18 146,500 Dec 27 Balance $ 306,000 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance 600 Warehouse Supplies Beg Bal. $ 350 Nov 10 675 Balance 1,025 Account Payable Beg Bal. $ 0 Oct 30 $ 250,000 $ 250,000 Oct 1 Dec 5 395,000 395,000 Nov 5 Dividends Beg Bal. $ 0 Dec 15 50,000 Sales Revenue Beg Bal. $ 2,654,150 180,000 Oct 12 20,000 15 255,000 28 60,000 Nov 1 40,000 15 220,000 18 315,000 Dec 27 Balance $ 3,744,150 Cost of Goods Sold Beg Bal. $ 1,061,450 Oct 12 73,000 15 8,000 28 105,500 Nov 1 25,500 15 18,000 18 88,500 Dec 27 146,500 Balance $ 1,526,450 Salaries expense - Selling Beg Bal. $ 270,000 Oct 31 30,000 Nov 30 30,000 Dec 31 30,000 Balance $ 360,000 Utilities Expense - Selling Beg Bal. $ 32,000 Oct 31 1,500 Nov 30 1,602 Dec 31 1,920 Balance $ 37,022 Warehouse supplies Beg Bal. $ 350 Nov 10 675 Balance $ 1,025 Salaries Expense − Administrative Beg Bal. $ 90,000 Oct 31 10,000 Nov 30 10,000 Dec 31 10,000 Balance $ 120,000 Utilities Expense - Administrative Beg Bal. $ 25,000 Oct 31 1,000 Nov 30 1,068 Dec 31 1,280 Balance $ 28,348 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance $ 600 (5) To prepare : Adjusting entries for the period and post them to the ledger. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Date Particular Debit ($) Credit ($) 2024 Dec 31 Depreciation Expense − Selling 36,375 Depreciation Expense − Administrative 12,125 Accumulative Depreciation 48,500 (Being adjustment entry passed) Dec 31 Supplies Expense − Selling 375 Warehouse Supplies 375 (Being adjustment entry passed) Supplies Expense − Office 400 Office Supplies 400 (Being adjustment entry passed) Dec 31 Cost of goods sold 205 Merchandise Inventory 205 (Being adjustment entry passed) Accumulated Depreciation Beg Bal. $ 194,000 48,500 Dec 31 Balance $ 242,500 Supplies Expense - Selling Beg Bal. $ 0 Dec 31 375 Depreciation Expense - Selling Beg Bal. $ 0 Dec 31 36,375 Supplies Expense - Administrative Beg Bal. $ 0 Dec 31 400 Depreciation Expense - Administrative Beg Bal. $ 0 Dec 31 12,125 Warehouse supplies Beg Bal. $ 350 Nov 10 675 Balance $ 1,025 375 Adj. Balance $ 650 Office Supplies Beg Bal. $ 275 Nov 10 325 Balance $ 600 400 Adj. Balance $ 200 Cost of Goods Sold Beg Bal. $ 1,061,450 Oct 12 73,000 Oct 15 8,000 Oct 28 105,500 Nov 1 25,500 Nov 15 18,000 Nov 18 88,500 Dec 27 146,500 Balance $ 1,526,450 Adj 205 Balance $ 1,526,655 Merchandise Inventory Beg Bal. $ 126,000 $ 73,000 Oct 12 Oct 1 250,000 8,000 Oct 15 Nov 5 395,000 105,500 Oct 28 25,500 Nov. 1 18,000 Nov 15 88,500 Nov 18 146,500 Dec 27 Balance $ 306,000 205 Adj. Balance $ 305,795 (6) To prepare : Adjusted Trial Balance Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Adjusted Trial Balance D L Company for the year ended December 31, 2024 Account Name Debit Credit Cash 407,630 Accounts Receivables 315,000 Merchandise Inventory 305,795 Office Supplies 200 Warehouse Supplies 650 Land 20,000 Building 780,000 Office Furniture & Fixtures 125,000 Warehouse Fixtures 260,000 Accumulated Depreciation 242,500 Accounts Payable 0 Common Stock 100,000 Retained earnings 298,925 Dividends 50,000 Sales revenue 3,744,150 Cost of goods sold 1,526,655 Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 Total $ 4,385,575 $ 4,385,575 (7) To prepare : Summary of Inventory. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. DESK Lamps TABLE Lamps FLOOR Lamps Number of lamps Dollar Amount Number of lamps Dollar Amount Number of lamps Dollar Amount Beginning Balance 2,500 $ 20,000 3,000 $ 54,000 2,000 $ 52,000 Add: Purchases 10,000 $ 95,000 17,500 $ 352,500 7,500 $ 197,500 Less: COGS 10,510 95,100 14,505 $ 280,605 3,500 $ 89,500 Ending Balance 1,990 $ 19,900 5,995 $ 125,895 6,000 $ 160,000 (8) To prepare : Income statement and balance sheet. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Income Statement Particular Amount Sales revenue $ 3,744,150 Less: Cost of goods sold 1,526,655 Gross profit 2,217,495 Less: Operating Expenses Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 594,645 Net Income $ 1,622,850 Statement of Retained Earnings Retained Earnings Statement Particular Amount Opening Balance $ 298,925 Less: Dividend $ 50,000 Add: Net Income 1,622,850 1,572,850 Ending Balance $ 1,871,775 Balance Sheet Liabilities and capital Amount Assets Amount Liabilities: Current Assets: Accounts Payable $ 0 Cash $ 407,630 Accumulated Depreciation 242,500 Accounts Receivables 315,000 Total Liabilities $ 242,500 Merchandise Inventory 305,795 Office Supplies 200 Capital: Warehouse Supplies 650 Common Stock 100,000 Total Current Assets $ 1,029,275 Retained earnings 1,871,775 Total Capital $ 1,971,775 Fixed Assets: Land 20,000 Building 780,000 Office Furniture and equipment 125,000 Warehouse Fixtures 260,000 Total Fixed Assets $ 1,185,000 Total Liabilities and capital $ 2,214,275 Total Assets $ 2,214,275 (9) To prepare : Calculation of Ratios. Introduction: Accounting ratios help in analyzing the profitability, liquidity as well as the financial stability of the organization and also assume the risk of the markets operating. Gross Profit Ratio = Gross profit/Net Sales × 100 = $2,217,495/$3,744,150 × 100 = 59.23% Inventory turnover = Cost of Goods sold/Average Inventory Average inventory = $126,000+$305,795/2 = $215,898 = $1,526,655/$215,898 = 7.07 Day’s sales in inventory = 365/Inventory Turnover = 365/7.07 = 51.63 days (10.) To prepare : Closing entries for the period. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Date Particular Debit Credit 2024 Dec 31 Sales revenue $ 3,744,150 Income Summary $ 3,744,150 (To close the sales revenue account) Dec 31 Income Summary 2,120,925 Cost of goods sold 1,526,655 Salaries Expense − Selling 360,000 Utilities Expense − Selling 37,022 Supplies Expense − Selling 375 Depreciation Expense − Selling 36,375 Salaries Expense − Administrative 120,000 Utilities Expense − Administrative 28,348 Supplies Expense − Administrative 400 Depreciation Expense − Administrative 12,125 (To close the expenses account) Dec 31 Net Income $ 1,622,850 Retained Earnings $ 1,622,80 (To close the retained earnings account) Dec 31 Retained Earnings 50,000 Dividend 50,000 (To transfer to dividend account) (11) To prepare : Post closing trial balance. Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company. Post Closing Trial Balance Account Name Debit Credit Cash $ 407,630 Accounts Receivables 315,000 Merchandise Inventory 305,795 Office Supplies 200 Warehouse Supplies 650 Land 20,000 Building 780,000 Office Furniture & Fixtures 125,000 Warehouse Fixtures 260,000 Accumulated Depreciation $ 242,500 Accounts Payable 0 Common Stock 100,000 Retained earnings 1,871,775 Total $2,214,275 $2,214,275

MYLAB ACCOUNTING WITH PEARSON ETEXT --

MYLAB ACCOUNTING WITH PEARSON ETEXT --

7th Edition

ISBN: 2819120053883

Author: MILLER-NOBLES

Publisher: PEARSON

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MYLAB ACCOUNTING WITH PEARSON ETEXT --

Ch. 6 - Which principle or concept states that businesses...Ch. 6 - Which inventory costing method assigns to ending...Ch. 6 - Assume Nile.com began April with 14 units of...Ch. 6 - Suppose Nile.com used the weighted-average...Ch. 6 - Which inventory costing method results in the...Ch. 6 - Prob. 6QC Ch. 6 - At December 31, 2016, Stevenson Company overstated...Ch. 6 - Suppose Maestros had cost of goods sold during the...Ch. 6 - Suppose Nile.com used the LIFO inventory costing...Ch. 6 - Prob. 1RQ

Ch. 6 - Prob. 2RQ Ch. 6 - Prob. 3RQ Ch. 6 - What is the goal of conservatism?Ch. 6 - Prob. 5RQ Ch. 6 - Under a perpetual inventory system, what are the...Ch. 6 - Prob. 7RQ Ch. 6 - Prob. 8RQ Ch. 6 - What does the lower-of-cost-or-market (LCM) rule...Ch. 6 - What account is debited when recording the...Ch. 6 - What is the effect on cost of goods sold, gross...Ch. 6 - When does an inventory error cancel out, and why?Ch. 6 - Prob. 13RQ Ch. 6 - Prob. 14RQ Ch. 6 - Prob. 15ARQ Ch. 6 - Prob. 16ARQ Ch. 6 - Determining inventory accounting principles Ward...Ch. 6 - Prob. 6.2SE Ch. 6 - Prob. 6.3SE Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Use the following information to answer Short...Ch. 6 - Comparing Cost of Goods Sold under FIFO, UFO, and...Ch. 6 - Prob. 6.8SE Ch. 6 - Prob. 6.9SE Ch. 6 - Prob. 6.10SE Ch. 6 - Prob. 6.11SE Ch. 6 - Prob. 6.12SE Ch. 6 - Prob. 6.13SE Ch. 6 - Using accounting vocabulary Match the accounting...Ch. 6 - Prob. 6.15E Ch. 6 - Prob. 6.16E Ch. 6 - Use the following information to answer Exercises...Ch. 6 - Prob. 6.19E Ch. 6 - Prob. 6.20E Ch. 6 - Prob. 6.21E Ch. 6 - Prob. 6.22E Ch. 6 - Prob. 6.23E Ch. 6 - Prob. 6.24E Ch. 6 - Prob. 6.25E Ch. 6 - Prob. 6.26E Ch. 6 - Prob. 6.27E Ch. 6 - Prob. 6.28AP Ch. 6 - Prob. 6.29AP Ch. 6 - Prob. 6.30AP Ch. 6 - Prob. 6.31AP Ch. 6 - Prob. 6.32AP Ch. 6 - Prob. 6.33BP Ch. 6 - Prob. 6.34BP Ch. 6 - Prob. 6.35BP Ch. 6 - Prob. 6.36BP Ch. 6 - Prob. 6.37BP Ch. 6 - Prob. 6.38CP Ch. 6 - Prob. 6.39PS Ch. 6 - Prob. 6.1COP Ch. 6 - Prob. 6.1CTDC

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