Question

In: Accounting

The Trial Balance for Terry’s Auto Shop as of January 1, Year 2 follows:     Account Debit...

The Trial Balance for Terry’s Auto Shop as of January 1, Year 2 follows:    

Account Debit Credit
Cash $16,000
Inventory 8,000
Common Stock $20,000
Retained Earnings 4,000
     Total $24,000 $24,000

The following events affected the company during the Year 2 accounting period:

  1. Purchased merchandise on account that cost $15,000.
  2. The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash.
  3. Returned $2,600 of damaged merchandise for credit on account.
  4. Sold merchandise that cost $15,000 for $31,000 cash.
  5. Delivered merchandise to customers in Event 4 under terms FOB destination with freight costs amounting to $500 cash.
  6. Paid $8,000 on the merchandise purchased in Event 1.
  7. Paid $9,000 cash for operating expenses.
  8. A physical count identified $5,100 of merchandise inventory on hand.

By how much must the accounting records be adjusted to bring Inventory in line with the physical count balance?

What is the ending Accounts Payable balance?

What is the ending Cash balance?

What is the Gross Margin Terry will report on the Year 2 Income Statement?

What is Terry's Net Income for Year 2?

What is the value of Total Assets on the Year 2 Balance Sheet?

What is Terry's Net Cash Flow from Operating Activities?

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows:
  The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,760         Inventory   3,170         Common Stock       $ 7,310   Retained Earnings         10,620   Total $ 17,930   $ 17,930     The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,140. The goods in Event...
The beginning account balances for Terry's Auto Shop as of January 1, Year XXX1, follows: Account...
The beginning account balances for Terry's Auto Shop as of January 1, Year XXX1, follows: Account titles Beginning balances Cash $6,100 Inventory $3,180 Common stock $7,460 Retained earnings $1,820 The following events affected the company during the year: 1 Purchased merchandise on account that cost $4,230 2 The goods in event 1 were purchased FOB shipping point with freight cost of $230 cash. 3 Returned $480 of damaged merchandise for credit on account. 4 Agreed to keep other damaged merchandise...
[The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
[The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, 2016, follows:   Account Titles Debit Credit   Cash $ 6,090   Inventory 3,150   Common Stock $ 7,480   Retained Earnings 1,760        Total $ 9,240 $ 9,240     The following events affected the company during the 2016 accounting period: 1. Purchased merchandise on account that cost $4,280. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash....
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,860 Inventory 3,060 Common Stock $ 7,350 Retained Earnings 10,570 Total $ 17,920 $ 17,920 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,130. The goods in Event 1 were purchased FOB shipping point with freight cost of $225 cash. Returned...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,860 Inventory 3,060 Common Stock $ 7,350 Retained Earnings 10,570 Total $ 17,920 $ 17,920 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,130. The goods in Event 1 were purchased FOB shipping point with freight cost of $225 cash. Returned...
Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial...
Account Unadjusted trial balance(debit) Unadjusted trial balance(credit Adjusting entries(debit) adjusting entries(credit) adjusted trial balance(debit) Adjusted trial balance(credit) Cash 32,236.75 32,236.75 baking supplies 18,500 18,500 merchandise inventory(fifo) 175.65 175.65 prepaid rent 1500 1500 prepaid insurance 2400 2400 baking equipment 6000 6000 accumulated depreciation 208.33 208.33 office supplies 600 600 accounts receivable 7700 7700 notes payable 10,000 10,000 wages payable 480 480 common stock 16,000 16,000 dividends 10,000 10,000 bakery sales 55,000 55,000 merchandise sales 221 221 baking supplies expense rent expense...
The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash...
The adjusted trial balance at April 30, 2017, for Willard Co. follows. Account Debit Credit Cash $106,300 Accounts receivable 25,620 Trucks 560,000 Accumulated depreciation, trucks $84,000 Franchise 55,000 Accounts payable 20,540 Salaries payable 10,200 Unearned revenue 35,000 Sid Willard, capital 250,000 Sid Willard, withdrawals 75,000 Plumbing revenue 850,630 Depreciation expense, trucks 84,000 Salaries expense 272,450 Rent expense 60,000 Advertising expense 12,000 Income summary Totals $1,250,370 $1,250,370 Required: 1.      Prepare the four closing entries. 2.      Prepare a post-closing trial balance.
The Revenue account balance of $42 000 was listed on the trial balance as a debit....
The Revenue account balance of $42 000 was listed on the trial balance as a debit. How much is the balance sheet off by, and is the debits more than the credits?
Cycle Company had the following trial balance at 3/1/2021: Opening trial balance Account name Debit Credit...
Cycle Company had the following trial balance at 3/1/2021: Opening trial balance Account name Debit Credit Cash 100 Accounts receivable 450 Supplies 0 Equipment 600 Accumulated depreciation 70 Payables 0 Long-term debt 0 Contributed capital--common stock 400 Retained earnings 680 Dividends 0 Revenue 0 Selling Expense 0 Administrative Expense 0 Depreciation expense 0 Other expense 0 Total      1,150      1,150 4.3 Activity for the month of March Date Activity 3/1/2021 The company borrowed $1,000 on a two-year note, with...
trial balance of pioneer corp. on July 1, 2010 is: account -------------------debit ---------------credit cash............................ $26,000   ...
trial balance of pioneer corp. on July 1, 2010 is: account -------------------debit ---------------credit cash............................ $26,000    accounts receivable...... $4,500 accounts payable....................................$2,000 common stock.........................................$10,000 retained earnings.....................................$18,500 total...............................$30,500 .............$30,500 transactions during august 2010 a.loan of $45,000 from chasebank in note form b.bought land for $40,000 cash c. received $5,000 for services performed for customer d. bought $300 supplies on credit e. paid $1000 on account f. paid salary expenses of $3000 g.received $3000 on account h. declared dividend of $1,800 i. paid...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT