Question

In: Accounting

Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in...

Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following:

Jan. 2 Sold $20,400 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $12,240. Schneider uses the perpetual inventory system.
Feb. 1 Accepted a $20,400, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity.
15 Sold $14,400 of merchandise costing $8,640 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity.
Mar. 15 Sold $10,700 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $6,420.
April 15 Collected the amount owing from Hoffman Co. in full.
May 15 Collected the Garrison note in full. (See February 15 transaction.)
31 Accrued interest at year end.
July 1 Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement.
13 Sold $6,000 merchandise costing $3,600 to Weber Enterprises and accepted Weber’s $6,000, three-month, 7% note for the amount due, with interest payable at maturity.
Oct. 13

The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed.

Record the above transactions. Assume Schneider Company has no stated return policy. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Solutions

Expert Solution

Date Account Titles Debit Credit
Jan-02 Accounts Receivable $ 20,400.00
Sales Revenue $ 20,400.00
Cost of Goods Sold $ 12,240.00
Inventory $ 12,240.00
Feb-01 Notes Receivable $ 20,400.00
Accounts Receivable $ 20,400.00
Feb-15 Notes Receivable $ 14,400.00
Sales Revenue $ 14,400.00
Cost of Goods Sold $ 8,640.00
Inventory $ 8,640.00
Mar-15 Accounts Receivable $ 10,700.00
Sales Revenue $ 10,700.00
Cost of Goods Sold $ 6,420.00
Inventory $ 6,420.00
Apr-15 Cash $ 10,700.00
Accounts Receivable $ 10,700.00
May-15 Cash $ 14,580.00
Notes Receivable $ 14,400.00
Interest Revenue $ 180.00
May-31 Interest Receivable $ 340.00
Interest Revenue $ 340.00
Jul-01 Allowance for Doubtful accounts $ 20,740.00
Interest Receivable $ 340.00
Notes Receivable $ 20,400.00
Jul-13 Notes Receivable $ 6,000.00
Sales Revenue $ 6,000.00
Cost of Goods Sold $ 3,600.00
Inventory $ 3,600.00
Oct-13 Accounts Receivable $ 6,105.00
Interest Revenue $ 105.00
Notes Receivable $ 6,000.00


Related Solutions

Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in...
Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following: Jan. 2 Sold $20,400 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $12,240. Schneider uses the perpetual inventory system. Feb. 1 Accepted a $20,400, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity. 15 Sold $14,400 of merchandise costing $8,640 to Garrison...
Assume the year end for Oblix Company is December 31. Selected transactions of fiscal year 2018...
Assume the year end for Oblix Company is December 31. Selected transactions of fiscal year 2018 for Oblix Company are presented below. All accounts are in normal balance: Beginning balance account receivable, $8,162; beginning balance allowance for doubtful accounts, $272. Service revenue all on account, $75,906. Collections on account, $74,628. Write-offs of uncollectible accounts receivable, $200. Recovered an account receivable that had been previously been written off, $100. Aging schedule of accounts receivable at year-end: Days Outstanding Outstanding Amount %...
Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts...
Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances). General Ledger M. Muncel, Capital Acct. No. 301 Salaries Expense Acct. No. 622 Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 83,000 May 31 G2 41,500 M. Muncel, Withdrawals Acct. No. 302 Insurance Expense Acct. No. 637 Date PR Debit Credit Balance Date PR Debit Credit Balance May 31 G2 48,000 May 31 G2 3,900 Services...
Abbot Equipment Repair has a September 30 year end. The company adjusts and closes its accounts...
Abbot Equipment Repair has a September 30 year end. The company adjusts and closes its accounts on an annual basis. On August 31, 2021, the account balances of Abbot Equipment Repair were as follows: ABBOT EQUIPMENT REPAIR Trial Balance August 31, 2021 ​​​​​​​​Debit ​​Credit Cash ​ ​​​​​​​$ 2,790 ​ ​ Accounts receivable ​​​​​​ 7,910 ​ Supplies ​​​​​​​ 8,500 ​ Equipment ​​​​​​​ 9,000 ​ Accumulated depreciation—equipment ​​​​​​$ 1,800 Accounts payable ​​​​​​​​ 3,100 Unearned revenue ​​​​​​​​ 400 J. Abbot, capital ​​​​​​​​ 21,200...
Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista...
Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista Company for two independent situations as at December 31, 2021: 1. Carla Vista purchased a patent from Tamarisk Inc. for $411,000 on January 1, 2018. The patent expires on January 1, 2026. Carla Vista has been amortizing it over its legal life. During 2021, Carla Vista determined that the patent’s economic benefits would not last longer than six years from the date of acquisition....
The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on...
The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the May 31 month-end adjustments: Prepare and post adjusting entries, and prepare adjusted trial balance and financial statements. HIGHLAND COVE RESORT Trial Balance May 31, 2021 Debit Credit Cash    $  17,520    Prepaid insurance 1,590 Supplies 995 Land 35,000 Building 150,000 Accumulated depreciation—building $  47,750 Furniture 33,000 Accumulated depreciation—furniture 12,925 Accounts payable 8,500 Unearned revenue 15,000...
The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on...
The Highland Cove Resort has a May 31 fiscal year end and prepares adjusting entries on a monthly basis. The following trial balance was prepared before recording the May 31 month-end adjustments: Prepare and post adjusting entries, and prepare adjusted trial balance and financial statements. HIGHLAND COVE RESORT Trial Balance May 31, 2021 Debit Credit Cash    $  17,520    Prepaid insurance 1,590 Supplies 995 Land 35,000 Building 150,000 Accumulated depreciation—building $  47,750 Furniture 33,000 Accumulated depreciation—furniture 12,925 Accounts payable 8,500 Unearned revenue 15,000...
2. The Sandcastle Motel adjusts and closes its accounts at the end of each year on...
2. The Sandcastle Motel adjusts and closes its accounts at the end of each year on 30 June. Most guests pay at the time they check out but a few guests pay in advance and these amounts are posted to Unearned Rental Revenue account at the time of receipt. The following transactions are being considered for adjustment: (i) A one-year bank loan of $80,000 was obtained on 1 May. No interest has yet been paid. The interest accrued at 30...
Windsor Games Inc. adjusts its accounts annually. The following information is available for the year ended...
Windsor Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $1,560 cash. 2. Paid $5,590 on August 31 for 5 months’ rent in advance. 3. On September 4, received $3,150 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school. 4. Signed a contract...
Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended...
Blossom Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $2,520 cash. 2. Paid $7,670 on August 31 for 5 months’ rent in advance. 3. On September 4, received $4,320 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school. 4. Signed a contract...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT