
1.
Prepare
1.

Explanation of Solution
Merchandise Inventory:
Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a trader, to be sold within a year. Merchandise Inventory is a current asset account which includes all the costs incurred to acquire merchandise, and process it further for sale.
Date | Account Titles and explanation | Post.Ref | Debit ($) | Credit ($) |
March 4 | 113 | 47.25 | ||
Sales | 411 | 45.00 | ||
Sales tax payable | 214 | 2.25 | ||
(To record the sale of merchandise to Company D, sales slip no.236) | ||||
March 7 | Accounts receivable | 113 | 64.05 | |
Sales | 411 | 61.00 | ||
Sales tax payable | 214 | 3.05 | ||
(To record the sale of merchandise to Company C, sales slip no.272) | ||||
March 12 | Accounts receivable | 113 | 66.15 | |
Sales | 411 | 63.00 | ||
Sales tax payable | 214 | 3.15 | ||
(To record the sale of merchandise to Company A, sales slip no.294) | ||||
March 17 | Accounts receivable | 113 | 178.50 | |
Sales | 411 | 170.00 | ||
Sales tax payable | 214 | 8.50 | ||
(To record the sale of merchandise to Company T, sales slip no.299) | ||||
March 20 | Sales returns and allowances | 412 | 36.00 | |
Sales tax payable | 214 | 1.80 | ||
Accounts receivable | 113 | 37.80 | ||
(To record the issuance of credit memo no.27) | ||||
March 21 | Accounts receivable | 113 | 247.80 | |
Sales | 411 | 236.00 | ||
Sales tax payable | 214 | 11.80 | ||
(To record the sale of merchandise to Company P, sales slip no.310) | ||||
March 22 | Sales returns and allowances | 412 | 25.00 | |
Sales tax payable | 214 | 1.25 | ||
Accounts receivable | 113 | 26.25 | ||
(To record the issuance of credit memo no.28) | ||||
March 27 | Accounts receivable | 113 | 31.50 | |
Sales | 411 | 30.00 | ||
Sales tax payable | 214 | 1.50 | ||
(To record the sale of merchandise to Company B, sales slip no.332) |
Table (1)
2.
2.

Explanation of Solution
Accounts Receivable Account No: 113 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 111.22 | ||||
4 | 28.35 | 139.57 | |||||
6 | 56.70 | 196.27 | |||||
12 | 16.80 | 213.07 | |||||
16 | 109.20 | 322.27 | |||||
18 | 273.00 | 595.27 | |||||
21 | 31.50 | 563.77 | |||||
23 | 189.00 | 752.77 | |||||
24 | 26.25 | 726.52 | |||||
Table (2)
Sales tax payable Account No: 214 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 72.84 | ||||
4 | 1.35 | 74.19 | |||||
6 | 2.70 | 76.89 | |||||
12 | 0.80 | 77.69 | |||||
16 | 5.20 | 82.89 | |||||
18 | 13.00 | 95.89 | |||||
21 | 1.50 | 94.39 | |||||
23 | 9.00 | 103.39 | |||||
24 | 1.25 | 102.14 |
Table (3)
Sales Account No: 411 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 4 | 27.00 | 27.00 | ||||
6 | 54.00 | 81.00 | |||||
12 | 16.00 | 97.00 | |||||
16 | 104.00 | 201.00 | |||||
18 | 260.00 | 461.00 | |||||
23 | 180.00 | 641.00 |
Table (4)
Sales returns and allowance Account No: 412 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 21 | 30.00 | 30.00 | ||||
24 | 25.00 | 55.00 |
Table (5)
Accounts receivable ledger | ||||||
Name : Company A | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 34.22 | |||
16 | 66.15 | 100.37 |
Table (6)
Accounts receivable ledger | ||||||
Name : Company B | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 27 | 31.50 | 31.50 | |||
Table (7)
Accounts receivable ledger | ||||||
Name : Company D | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 4 | 47.25 | 47.25 | |||
Table (8)
Accounts receivable ledger | ||||||
Name : Company M | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 19.50 | |||
7 | 64.05 | 83.55 |
Table (9)
Accounts receivable ledger | ||||||
Name : Company P | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 57.50 | |||
21 | 247.80 | 305.30 | ||||
22 | 26.25 | 279.05 |
Table (10)
Accounts receivable ledger | ||||||
Name : Company T | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 17 | Balance | 178.50 | 178.50 | ||
20 | 37.80 | 140.70 |
Table (11)
3.
Prepare Company A’s schedule of accounts receivable and compare the total with accounts receivable controlling ledger.
3.

Explanation of Solution
Prepare Company A’s schedule of accounts receivable:
Company A | |
Schedule of accounts receivable | |
March 31,20-- | |
Particulars | Amount in $ |
Company A | 100.37 |
Company B | 31.50 |
Company D | 47.25 |
Company M | 83.55 |
Company P | 279.05 |
Company T | 140.70 |
Total accounts receivable | 682.42 |
(Table 12)
Want to see more full solutions like this?
Chapter 9 Solutions
Bundle: College Accounting: A Career Approach, Loose-leaf Version, 13th + Quickbooks Online + Working Papers With Study Guide
- Roach and Sulman own a grocery shop. Their first financial year ended on 31 December 19x0. The following balance were taken from the books on that date. Capital - Roach R60000, Suleman R48000 Partnership salaries - Roach R9000, Suleman R6000 Drawings - Roach R12860, Suleman R13400 The first net profit for the year was R32840 Interest on capital is to be allowed at 10% per year Profits and losses are to be shared equally. From the above, prepare the firms appropriation statement and the partners current accountsarrow_forwardI am looking for the correct answer to this financial accounting problem using valid accounting standards.arrow_forwardI am trying to find the accurate solution to this financial accounting problem with appropriate explanations.arrow_forward
- I need help solving this general accounting question with the proper methodology.arrow_forwardHenderson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2024: • Asset #1: 7-year property; $940,000 cost; placed into service on January 20. Asset #2: 5-year property; $410,000 cost; placed into service on August 1. View the MACRS half-year convention rates. Read the requirements. Calculate Henderson's depreciation deductions for 2024. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) 2024 Depreciation Asset #1 Asset #2 Total depreciation 134,326 82,000 216,326 Calculate Henderson's depreciation deductions for 2025. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) 2025 Depreciation Asset #1 Asset #2 Total depreciation 230,206 131,200 361,406 b. What are Henderson's depreciation deductions for 2024 and 2025 if this is the only property it places into service in those years and Henderson elects Sec. 179 expensing for…arrow_forwardPlease explain the solution to this general accounting problem with accurate principles.arrow_forward
- Henderson Corporation uses the calendar year as its tax year. It acquires and places into service two depreciable assets during 2024: • Asset #1: 7-year property; $940,000 cost; placed into service on January 20. Asset #2: 5-year property; $410,000 cost; placed into service on August 1. View the MACRS half-year convention rates. Read the requirements. Calculate Henderson's depreciation deductions for 2024. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) 2024 Depreciation Asset #1 Asset #2 Total depreciation 134,326 82,000 216,326 Calculate Henderson's depreciation deductions for 2025. (Use MACRS rates to two decimal places, X.XX%. Round the MACRS depreciation to the nearest dollar.) 2025 Depreciation Asset #1 Asset #2 Total depreciation 230,206 131,200 361,406 b. What are Henderson's depreciation deductions for 2024 and 2025 if this is the only property it places into service in those years and Henderson elects Sec. 179 expensing for…arrow_forwardCarlyon Company listed the following items in its December 31, Year 1, financial statements: Investment in Man Company bonds $21,000 Dividends payable: preferred 4,000 Dividends payable: common 50,000 Preferred stock, 8%, $100 par 100,000 Common stock, $10 par 500,000 Additional paid-in capital on preferred stock 20,000 Additional paid-in capital on common stock 262,500 Retained earnings 270,000 During Year 2, the following transactions occurred: Feb. 2 Paid the semiannual dividends declared on December 15, Year 1. Mar. 5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $21,000) have a current market value of $30,000. Apr. 5 Paid the property dividend. Jul. 6 Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17. Aug. 17 Paid the cash dividends.…arrow_forwardRequired information [The following information applies to the questions displayed below.] Jarvie loves to bike. In fact, he has always turned down better-paying jobs to work in bicycle shops where he gets an employee discount. At Jarvie's current shop, Bad Dog Cycles, each employee is allowed to purchase four bicycles a year at a discount. Bad Dog has an average gross profit percentage on bicycles of 25 percent. During the current year, Jarvie bought the following bikes: Description Retail Price Specialized road bike $ 4,000 Cost $ 3,600 Employee Price $ 2,800 Rocky Mountain mountain bike 5,000 4,100 4,000 Trek road bike 3,900 3,300 2,730 Yeti mountain bike 4,600 3,400 3,680 b. What amount of deductions is Bad Dog allowed to claim from these transactions? Amount of deductionsarrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubIndividual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning


