Question

In: Accounting

King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria....

King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria. The following balances were reported in the Balance Sheet as at 30 June 2019; Account Name Balance ($) Cash at bank 39 400 Accounts receivable 2 800 Accounts payable 1 200 Capital – Tim Lane 41 000 July transactions for 2019 were as follows: July 2 Received $2800 from accounts receivable 3 Paid $1000 of accounts payable 4 Paid rent for July $700 5 Sent invoice to customer $5600 7 Purchased office equipment for cash $2000 9 Recorded cash sales $800 10 Recorded credit sales $1500 14 Purchased office supplies for cash $330 23 Recorded cash sales $2000 31 Cash drawing by Tim Lane $800 Required: a. Record Journal entries for the business transactions for the month ended 31 July 2019. b. Record the transactions in the following ledger accounts for King Sports for the month ended 31 July 2019. (i) Cash account.) (ii) Accounts receivable. (iii) Office equipment. (iv) Rent expense. (v) Office supplies expense. (vi) Drawings account. (vii) Tim Lane’s capital account. (viii) Sales revenue account. c. Prepare a trial balance at 31 July 2019.

Solutions

Expert Solution


Related Solutions

King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria....
King Sports owned by Tim Lane, sells sports equipment to schools and sporting clubs in Victoria. The following balances were reported in the Balance Sheet as at 30 June 2019. Account Name Balance ($) Cash at bank 39 400 Accounts receivable 2 800 Accounts payable 1 200 Capital – Tim Lane 41 000 (Note this question continues over the page) 4 Week 8 – Question 3 (Cont’d) Transactions for July 2019 were as follows: July 2 Received $2800 from accounts...
You have decided to open a sports store that sells sporting equipment and competes with the...
You have decided to open a sports store that sells sporting equipment and competes with the local sporting goods chain. List an internal control procedure that you would implement in the store. Describe the procedure and explain how it would safeguard the business and/or its assets. Explain why it would be important to implement this internal control and what potential loss you would be safeguarding against.  
Big Apple Sporting Goods is a retail store that sells a variety of sports equipment. The...
Big Apple Sporting Goods is a retail store that sells a variety of sports equipment. The company's fiscal year ends on December 31. Information to be used for the operating budget this coming year follows. Sales and Merchandise Purchases Budget Information • Sales for this coming year ending December 31 are expected to be as follows: First quarter: $600,000 Second quarter: $650,000 Third quarter: $660,000 Fourth quarter: $800,000 • Cost of goods sold is 40 percent of sales (this is...
Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static...
Vaughn Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 2,000 kits was prepared for the year. Fixed operating expenses account for 80% of total operating expenses at this level of sales. Sales Revenue $ 100,280 Cost of goods sold (all variable) 60,000 Gross margin 40,280 Operating expenses 35,170 Operating income $ 5,110 Prepare a flexible budget based on sales of 1,467, 2,570, and 3,840 units.
Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static...
Bonita Sports sells volleyball kits that it purchases from a sports equipment distributor. The following static budget based on sales of 800 kits was prepared for the year. Fixed operating expenses account for 32% of total operating expenses at this level of sales. Sales $ 40,000 Cost of goods sold (all variable) 24,000 Gross margin 16,000 Operating expenses 14,000 Operating income $ 2,000 Assume that Bonita Sports actually sold 840 volleyball kits during the year at a price of $49...
Jake’s Sporting Goods presented two years of data for its Clothing Division and Sports Equipment Division....
Jake’s Sporting Goods presented two years of data for its Clothing Division and Sports Equipment Division. Clothing Division: Year 1 Year 2 Sales $21,550,000 $22,320,000 Operating Income 2,430,000 1,960,000 Average Operating Assets 5,150,000 5,150,000 Sports Equipment Division: Year 1 Year 2 Sales $28,070,000 $31,250,000 Operating Income 475,000 1,006,000 Average Operating Assets 7,012,000 7,012,000 PART A Compute the ROI and the margin and turnover ratios for the first year for the Clothing Division. PART B Compute the ROI and the margin...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130 and had transactions as follows: Mar 1st beginning inventory 5 units at $30 per unit Mar 3rd sold 3 units Mar 6th purchased inventory 30 units at $40 per unit Mar 17th sold 20 units Mar 23rd purchased inventory 25 units at $50 per unit Mar 31st sold 30 units...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130 and had transactions as follows: Mar 1st beginning inventory 5 units at $30 per unit Mar 3rd sold 3 units Mar 6th purchased inventory 30 units at $40 per unit Mar 17th sold 20 units Mar 23rd purchased inventory 25 units at $50 per unit Mar 31st sold 30 units...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130. Description Units Unit Cost Mar. 1 Beginning Inventory 7 $32 Mar. 3 Purchase 52 $37 Mar. 6 Purchase 102 $42 Mar. 17 Sale 47 Mar. 23 Purchase 34 $42 Mar. 31 Sale 124 Required: Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases...
Sport Box sells a wide variety of sporting equipment. The following is information on the purchases and sales of their top selling hockey stick. The hockey stick sells for $130. Description Units Unit Cost Mar. 1 Beginning Inventory 24 $49 Mar. 3 Purchase 69 $54 Mar. 6 Purchase 119 $59 Mar. 17 Sale 64 Mar. 23 Purchase 68 $59 Mar. 31 Sale 158 Required: Calculate the cost of goods sold and ending inventory under the perpetual inventory system using the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT