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In: Accounting

Product Name Description Fish Finders Helm module using sonar to identify fish Propellers Propulsion unit designed...

Product Name Description
Fish Finders Helm module using sonar to identify fish
Propellers Propulsion unit designed specifically for V-drives
Downriggers Transom mounted deep lake fishing device
Panther Marine Corporation
Account Name May Balances
Four Winns $       7,000.00
Chris Craft $     86,350.00
Sea Ray $     65,000.00
Boston Whaler $     92,500.00
Donzi $   300,000.00
Panther Marine Corporation
Chart of Accounts - Accounts Payable Ledger
Account Name May Balances
Raydar Marine $     25,000.00
Acme $   362,500.00
Scotty $   104,000.00
DU Utility Company $       3,300.00
Staples $           500.00
Panther Marine Corporation
Chart of Accounts - General Ledger
BALANCE SHEET ACCOUNTS
   Assets
     Current Assets
Acct # Account Name
100 Cash
102 Accounts Receivable
103 Allowance for Doubtful Accounts
104 Merchandise Inventory
105 Estimated Returns Inventory
106 Office Supplies
107 Prepaid Insurance
Other Assets
120 Investments - Trading
121 Investments - Available for Sale
122 Investments - Held to Maturity
123 Valuation Allowance
     Property, Plant and Equipment
140 Land
145 Building
146 Accumulated Depreciation - Building
151 Equipment
152 Accumulated Depreciation - Equipment
153 Office Furniture
154 Accumulated Depreciation - Office Furniture
   Liabilities
     Current Liabilities
201 Accounts Payable
202 Wages Payable
203 Interest Payable
204 Dividends Payable
205 Unearned Rent
206 Customer Refunds Payable
     Long-Term Liabilities
250 Notes Payable
251 Bonds Payable
252 Premium on Bonds Payable
253 Discount on Bonds Payable
252 Mortgage (Warehouse) Payable
   Capital (Equity)
300 Common Stock, $1 Par, 100,000 Authorized; 40,000 shares Issued/Outstanding
301 Paid In Capital - Excess of Par (APIC)
330 Retained Earnings
331 Cash Dividends
340 Treasury Stock
341 Unrealized (Gain) Loss - Available for Sale
INCOME STATEMENT ACCOUNTS
   Revenue
500 Sales
   Cost of Goods Sold
600 Cost of Goods Sold
   Operating Expenses
700 Wage Expense (hourly workers)
701 Salaries Expense (Exempt Staff)
702 Marketing Expense
703 Travel and Entertainment Expense
704 Bad Debt Expense
705 Property Tax Expense
706 Office Maintenance & Repair Expense
707 Legal Expenses
708 Insurance Expense
709 Utilities Expense
710 Office Supplies Expense
711 Telecommunications Expense
712 Depreciation Expense - Equipment
713 Depreciation Expense - Office Furniture
   Other Income
800 Rent Income
801 Unrealized Gain - Trading Securities
802 Realized Gain - Investment Securities
   Other Expenses
900 Interest Expense
901 Urealized Loss - Trading
902 Realized Loss - Investment Securities
Journal Entry Instructions
Within this worksheet you will find a list of transactions for the month of June. Use these to write the corresponding journal entries. You are to write all the journal entries in general journal format (double entry accounting). LIST DEBITS BEFORE CREDITS. SKIP 1 LINE AFTER EACH ENTRY.MAKE SURE TO INPUT THE CORRECT TRANSACTIONS ON EACH GENERAL JOURNAL PAGE - THERE WILL BE EXTRA ROWS ON EACH PAGE!!!
Before starting work, review the entire project: all instructions, business transactions descriptions, workbook sections , check figures, due dates, and submission requirements.
Credit Terms & Inventory Accounting
When Panther Marine purchases merchandise inventory from a supplier or vendor on account, they receive credit terms of 2/20, net 30.
When Panther Marine sells merchandise to a customer on account, they offer that customer credit terms of 2/30, net 45. Do NOT round intermediate calculations. If required round final number to nearest cent.
Panther Marine uses a perpetual inventory accounting system and a last-in, first-out (LIFO) inventory costing method. Within this workbook there is a worksheet labeled "Inventory Control". You will need to update this worksheet EVERYTIME a purchase or sale is made. As part of that process you will be calculating the value of CGS each time you generate a sale. Use the "Inventory Control" worksheet to calcluate your Cost of Goods Sold values.
Panther Marine uses the net method of accounting for purchases and sales. The net method assumes that discounts are taken when a purchase or sale is made on account. Discounts are applied right away.   
JUNE JOURNAL TRANSACTIONS
June 1 Purchased 5,000 Fish Finder units on Credit from Raydar Marine for $42.00 per unit.
June 1 Issued 10,000 shares of common stock for $20 per share (Refer to the Chart of Accounts for description of common stock).
June 1 Signed a one-year 15%, $216,000 note payable with Boat US Bank.
June 1 Sold 4,000 Propellers on account to Chris Craft for $85 per units, Invoice #5555.
June 2 Rented part of the warehouse to a new tenant and received $6,000 for three months rent (June, July, August).
June 2 Sold 5,200 Fish Finder units on account to Sea Ray for $82 per unit, Invoice #5556.
June 2 Purchased office supplies from Staples on credit for $4,800.
June 2 Sold 900 Downriggers for $66 per unit and 800 propeller units for $86 per unit on account to Boston Whaler, Invoice #5560.
June 3 The Board of Directors declared a cash dividend of $2 per share for shareholders of record on June 5th, payable on June 12th. Refer to the chart of accounts for # of outstanding shares. Please include ALL outstanding shares as of June 5th.
June 4 Received payment from Chris Craft for May 20th sale.  
June 4 A bankruptcy judge disallowed Panther Marine's claim for $7,000 due from Four Winns. Management decided to write off this accounts receivable.
June 5 Paid $3,300 to DU Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278.
June 6 Purchased 8,000 shares of Grand Valley Marine, Inc. stock for $15 per share. The investment is intended to be held for less then 1 year.
June 7 Received and paid expense reports for travel and entertainment totaling $5,925, Check #5279.
June 8 Paid for office supplies purchased on June 2nd, Check #5280.
June 11 Paid in full for the June 1 purchase from Raydar Marine, Check #5281.
June 11 Received a bill from the law firm Bob Loblaw for $4,100, payable upon receipt, for bond consulting fees, paid the bill immediately-no payable recognized. Issued Check #5282.
June 12 Paid the dividend that was declared on June 3, Check #5283.
June 13 Took advantage of a trade discount of 20% on the purchase of 3,250 Propellers on account from Acme. Before applying trade discount the propellers are selling for $52 per unit. (Trade discount taken on total BEFORE purchase discount).
June 13 Purchased 1,850 Fish Finder units on credit from Raydar Marine for $50 per unit.
June 15 Sold 3,500 Propellers on credit to Donzi for $99.00 per unit, Invoice 5557.
June 15 Check # 5284 was issued for payroll: $20,500 for salaried and $6,600 for wages.
June 16 Purchased 2,500 Downriggers on credit from Scotty for $32 per unit.
June 17 Issued a credit to Sea Ray for the return of 350 defective fish finder units from the June 2nd sale. These units has a cost basis of $41.16 per unit.
June 17 Returned the 350 defective units received from Sea Ray to Raydar Marine. Raydar Marine issued a cash refund.
June 18 Received payment in full from Chris Craft for the June 1st sale.
June 20 While inspecting the June 13th purchase, it was discovered that the Fish Finder units were programmed for South America instead of North America. Panther Marine returned the entire order to Raydar Marine.
June 20 Panther Marine purchased 2,800 shares of it's own stock for $10 per share.
June 22 Sold 2,650 Downriggers on credit to Sea Ray for $56 per unit, Invoice #5559.
June 23 Paid $195,000 of the $362,500 owed to Acme from May 25, Check #5285.
June 23 Received payment from Donzi for $175,000 of the $300,000 owed from May 5.
June 24 Purchased a $3,000 international phone card for one of the sales representative's upcoming European business trip, Check #5286.
June 25 Paid in full for the purchase from Acme on June 13, Check #5287
June 26 Purchased 1,250 Downriggers from Scotty for $33 per unit paying in cash, Check #5288
June 27 Sold 1,500 Downriggers on credit to Donzi for $61 per unit, Invoice 5558.
June 27 Hired and paid a consultant $85,000 to devise a marketing plan. Panther Marine's management felt this was necessary to develop brand awareness. Check #5289.
June 28 Panther Marine is behind in its mortgage payments to LMCU. Paid a total of $20,000 ($4,000 principal and $16,000 interest), Check #5290.
June 28 Sold 1,000 treasury shares from June 20th transaction for $15 per share
June 29 Received payment in full from Donzi for the June 27th transaction.
June 29 Sold 3,000 shares of Grand Valley Marine, Inc stock for $18 per share.
June 29 Check #5292 was issued for payroll: $20,500 for salaries and $7,750 for wages.
June 30 Paid the first month's principal payment of $18,000 on the note payable. In addition, paid one month's interest, Check #5293
June 30 Issued bonds payable at 97 discount. Face value of the bonds is $400,000. Contract rate on bond is 8% and bond matures in 5 years.

Solutions

Expert Solution

In the books of Panther Marine Corporation

Journal

Date Particulars Debit Credit
June 1 Cost of Goods Sold - Fish Finder [(5000 x $42) x 98%] $205800
Accounts Payable - Raydar Marine $205800
Cash (10000 x $20) $200000
Equity Capital - Common stock (10000 x $1) $10000
Paid In Capital - Excess of Par (APIC) (10000 x $19) $190000
Cash $216,000
Note Payable $216,000
Accounts Receivables - Chris Craft $333200
Sales - Propellers [(4000 x $85) x 98%] $333200
June 2 Cash $6000
Rent Income (6000 / 3) $2000
Unearned Rent $4000
Accounts Receivables - Sea Ray [(5200 x 82) x 98%] $417872
Sales - Fish Finder $417872
Office Supplies $4,800.
Accounts Payable - Staples $4,800.
Accounts Receivables - Boston Whaler $125636
Sales - Downriggers  (900 x 66) x 98% $58212
Sales - propeller (800 x 86) x 98% $67424
June 3 Retain Earnings (40000 + 10000) x $2 $100000
Dividend Payable $100000
June 4 Cash $86,350
Accounts Receivables - Chris Craft $86,350
Bad Debt $7,000
Accounts Receivables - Four Winns $7,000
June 5 Accounts Payable - DU Utility Co $3,300
Cash [note - Assuming paid with in 20days] $3,300
June 6 Investments - Trading (8000 x 15) $120000
Cash $120000
June 7 Travel and Entertainment Expense $5,925
Cash $5,925
June 8 Accounts Payable - Staples $4,800
Cash $4,800
June 11 Accounts Payable - Raydar Marine $205800
Cash $205800
Legal Expenses $4,100
Cash $4,100
June 12 Dividend Payable $100000
Cash $100000
June 13 Cost of Goods Sold - Propellers (3250 x 80%of$52) x 98% $132496
Account Payables - Acme $132496
Cost of Goods Sold -  Fish Finder ( 1,850 x $50) x 98% $90650
Accounts Payables - Raydar Marine $90650
Date Particulars Debit Credit
June 15 Accounts Receivables - Donzi $339570
Sales - Propellers (3,500 x $99) x 98% $339570
Net Payroll Payable
-Salaries $20,500
-Wages $6,600
Cash $27100
June 16 Cost of Goods Sold - Downriggers $78400
Accounts Payables - Scotty ( 2,500 x $32) x 98% $78400
June 17 Sales - fish finder (350 x $82) x 98% $28126
Accounts Receivables - Sea Ray $28126
Cash ($41.16 x 350)
Cost of goods sold - fish finder
June 18 Cash $333200
Accounts Receivables - Chris Craft $333200
Date Particulars Debit Credit
20 June Accounts Payables - Raydar Marine $90650
Cost of Goods Sold -  Fish Finder ( 1,850 x $50) x 98% $90650
Treasury stock $28000
Cash (2,800 x $10) $28000
June 22 Accounts receivables - Sea Ray $145432
Sales - Downriggers (2,650 x $56) x 98% $145432
June 23 Accounts Payable - Acme $195,000
Cash $195,000
Discount Lost ($362,500 / 98) x 2 $7398
Accounts Payable - Acme $7398
Cash $175,000
Accounts Receivables - Donzi $175,000
Accounts Receivables - Donzi $6123
Discount Gained ($300,000 / 98) x 2 $6123
Date Particulars Debit Credit
24 June Telecommunications Expense $3,000
Cash $3,000
25 June Account Payables - Acme $132496
Cash $132496
26 June Cost of goods sold - Downriggers $41250
Cash (1,250 x  $33 ) $41250
27 June Accounts Receivables - Donzi $89670
Sales - Downriggers (1,500 x $61) x 98% $89670
Marketing Expense $85,000
Cash $85,000
June 28 Mortgage Payable $4,000
Interest Payable $16,000
Cash $20,000
Cash (1000 x 15) $15000
Treasury Stock (1000 x $10) $10000
Paid In Capital - Excess of Par (APIC) $5000
June 29 Cash $89670
Accounts Receivables - Donzi $89670
Cash (3000 x 18) $54000
Investments - Trading (3000 x 15) $45000
Realized Gain - Investment Securities (3000 x 3) $9000
Payroll Payable-
Salaries $20,500
Wages $7,750
Cash $28250
30 june Note Payable $18,000
Interest expenses ($216,000 x 15%) / 12 $2700
Cash $20700
Cash 12000
Discount on Bonds Payable ($400,000 x 97%) 388000
Bond Payable $400,000

[Note -
Above are the journal entries of only those transactions which is stated in given question.
Although Panther Marine uses LIFO but for calculating CGS in each time of sales, data of inventory control (like, opening balance of each product) is needed but it is not given in above question.
There is no bank account given in this question. Hence, Cash account is taken instead of Bank account]


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