Question

In: Accounting

Accounting Cycle Review 5 a-b, c1-c2, d, e1-e3 On December 1, 2019, Prosen Distributing Company had...

Accounting Cycle Review 5 a-b, c1-c2, d, e1-e3 On December 1, 2019, Prosen Distributing Company had the following account balances. Debit Credit Cash $7,400 Accumulated Depreciation—Equipment $2,200 Accounts Receivable 4,700 Accounts Payable 4,500 Inventory 11,900 Salaries and Wages Payable 1,000 Supplies 1,300 Common Stock 29,000 Equipment 22,000 Retained Earnings 10,600 $47,300 $47,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,600 for salaries and wages due to employees, of which $600 is for December, and $1,000 is for November salaries and wages payable. 8 Received $1,900 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,400. The cost of the merchandise sold was $4,100. 13 Purchased merchandise on account from Maglio Co. $9,300, terms 2/10, n/30. 15 Purchased supplies for cash $2,100. 18 Sold merchandise on account $12,100, terms 3/10, n/30. The cost of the merchandise sold was $8,100. 20 Paid salaries and wages $1,900. 23 Paid Maglio Co. in full, less discount. 27 Received collections in full, fewer discounts, from customers billed on December 18. Adjustment data: 1. Accrued salaries and wages payable $800. 2. Depreciation $200 per month. 3. Supplies on hand $1,400. Journalize the December transactions using a perpetual inventory system. (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 Dec. 6 Salaries and Wages Expense 600 Salaries and Wages Payable 1,000 Cash 1600 Dec. 8 Cash 1900 Accounts Receivable 1900 Dec. 10 Cash 6400 Sales Revenue 6400 (To record sales revenue.) Cost of Goods Sold 4100 Inventory 4100 (To record cost of goods sold.) Dec. 13 Inventory 9300 Accounts Payable 9300 Dec. 15 Supplies 2100 Cash 2100 Dec. 18 Accounts Receivable 12,100 Sales Revenue 12,100 (To record the sales revenue.) Cost of Goods Sold 8,100 Inventory 8,100 (To record cost of goods sold.) Dec. 20 Salaries and Wages Expense 1,900 Cash 1,900 Dec. 23 Accounts Payable 9,300 Inventory Cash Dec. 27 Cash Sales Discounts Accounts Receivable Enter the December 1 balances ledger T-accounts and post the December transactions. Use Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Sales Revenue, Sales Discounts, and Supplies Expense. (Post entries in the order of journal entries presented above. If an answer is zero, please enter 0. Do not leave any fields blank.) Cash 12/1 Bal. 7,400 12/6 1,600 12/8 1,900 12/15 2,100 12/10 6700 12/20 1900 12/27 12028 12/23 9300 12/31 Bal. 13316 Accounts Receivable 12/1 Bal. 5,000 12/8 1800 12/18 12400 12/27 12400 12/31 Bal. 3200 Inventory 12/1 Bal. 12,400 12/10 3900 12/13 9400 12/18 8200 12/23 188 12/31 Bal. 9512 Supplies 12/1 Bal. 1500 12/15 1800 Equipment 12/1 Bal. 22,000 12/31 Bal. 22,000 Accumulated Depreciation—Equipment 12/1 Bal. 2,200 Accounts Payable 12/23 9400 12/1 Bal. 4,800 12/13 9400 12/31 Bal. 4800 Salaries and Wages Payable 12/6 1000 12/1 Bal. 1000 Retained Earnings 12/1 Bal. 25,100 12/31 Bal. 25,100 Sales Revenue 12/10 6700 12/18 12400 12/31 Bal. 19100 Sales Discounts 12/27 372 12/31 Bal. 372 Cost of Goods Sold 12/10 3900 12/18 8200 12/31 Bal. 12100 Salaries and Wages Expense 12/6 900 12/20 1600 Journalize the adjusting entries. (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.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 Salaries and Wages Expense 600 Salaries and Wages Payable 600 2. Depreciation Expense 200 Accumulated Depreciation-Equipment 200 3. Supplies Expense 1600 Supplies 1600 Post the adjusting entries. (Post entries in the order of journal entries presented above.) Cash 12/1 Bal. 7,400 12/6 1,600 12/8 1,900 12/15 2,100 12/10 6,400 12/20 1,900 12/27 11,737 12/23 9,114 12/31 Bal. 12,723 Accounts Receivable 12/1 Bal. 4,700 12/8 1,900 12/18 12,100 12/27 12,100 12/31 Bal. 2,800 Inventory 12/1 Bal. 11,900 12/10 4,100 12/13 9,300 12/18 8,100 12/23 186 12/31 Bal. 8,814 Supplies 12/1 Bal. 1,300 1,600 12/15 2,100 12/31 Bal. 1,700 Equipment 12/1 Bal. 22,000 12/31 Bal. 22,000 Accumulated Depreciation—Equipment 12/1 Bal. 2,200 12/1 Bal. 200 12/31 Bal. 2,400 Accounts Payable 12/23 9,300 12/1 Bal. 4,500 12/13 9,300 12/31 Bal. 4,500 Salaries and Wages Payable 12/6 1,000 12/1 Bal. 1,000 12/31 600 12/31 Bal. 600 Retained Earnings 12/1 Bal. 10,600 12/31 Bal. 10,600 Sales Revenue 12/10 6,400 12/18 12,100 12/31 Bal. 18,500 Sales Discounts 12/27 363 12/31 Bal. 363 Cost of Goods Sold 12/10 4,100 12/18 8,100 12/31 Bal. 12,200 Depreciation Expense 12/31 200 12/31 Bal. 200 Salaries and Wages Expense 12/6 600 12/20 1,900 12/31 600 12/31 Bal. 3,100 Supplies Expense 12/31 1,600 12/31 Bal. 1,600 Prepare an adjusted trial balance. PROSEN DISTRIBUTING COMPANY Adjusted Trial Balance December 31, 2019, Debit Credit Cash $ 13316 $ Accounts Receivable 3200 Inventory 9512 Supplies 1700 Equipment 22000 Accumulated Depreciation-Equipment 2400 Accounts Payable 4800 Salaries and Wages Payable 600 Retained Earnings 25100 Sales Revenue 19100 Sales Discounts 372 Cost of Goods Sold 12100 Depreciation Expense 200 Salaries and Wages Expense 3100 Supplies Expense 1600 Income Summary 190 $ 67290 $ 67290 Prepare an income statement for December. PROSEN DISTRIBUTING COMPANY Income Statement For the Year Ending December 31, 2019 Sales Revenue $ 19100 Less: Sales Discounts -372 Net Sales 18728 Less: cost of goods sold -12100 Gross Profit / (Loss) 6628 Operating Expenses Depreciation Expense $ 200 Salaries, and Wages Expense 3100 Supplies Expense 1600 4900 Net Income / (Loss) $ 1538 Prepare a retained earnings statement for December. PROSEN DISTRIBUTING COMPANY Retained Earnings Statement For the Month Ended December 31, 2019, $: $ Prepare a classified balance sheet on December 31. (List Current Assets in order of liquidity.) PROSEN DISTRIBUTING COMPANY Balance Sheet For the Month Ending December 31, 2019 Assets $ $: $ Liabilities and Stockholder’s Equity $ $ $

Solutions

Expert Solution

Trial balance
(amount $) (amount $) (amount $)
Dec1st During the month Closing balance
Debit   Credit Debit   Credit Debit   Credit
Cash     7,400.00 13,637.00 14,714.00     6,323.00
Accu dep equip     2,200.00        200.00     2,400.00
accounts receivable     4,700.00 18,500.00 14,000.00     9,200.00
accounts payable     4,500.00     9,300.00     9,300.00     4,500.00
inventory 11,900.00     9,300.00 12,200.00     9,000.00
salaries and wages paayble     1,000.00     1,000.00        800.00        800.00
supplies     1,300.00     2,100.00     2,000.00     1,400.00
common stock 29,000.00 29,000.00
equipment 22,000.00 22,000.00
retained earnings 10,600.00 10,600.00
salaries and wages     3,300.00     3,300.00
Sales 18,500.00 18,500.00
Cost of goods sold 12,200.00 12,200.00
Supplies expenses a/c     2,000.00     2,000.00
Discount given        363.00        363.00    
Discount received        186.00        186.00
Depreciation 200        200.00
47,300.00 47,300.00 71,900.00 71,900.00 65,986.00 65,986.00
Journal entries (Amount $)
Debit Credit
Salaries and wages a/c Dr        600.00
Salaries and wages Payable a/c Dr     1,000.00
To Cash A/c     1,600.00
(Being Salaries and wages for the month of december and nov in payable a/c accounted)
Cash a/c Dr     1,900.00
To Accounts receivable a/c     1,900.00
(Being Cash received on account from the customers)
Accounts receivable a/c Dr     6,400.00
To sales a/c     6,400.00
(Being sales made on account accounted)
Cost of goods sold a/c Dr     4,100.00
To inventory a/c     4,100.00
(Being sale related cost accounted)
Merchandise-invneotyr a/c Dr     9,300.00
To Account payable a/c     9,300.00
(Being merchandise purchased on account accounted)
Supplies a/c Dr     2,100.00
To cash a/c     2,100.00
(Being supplies purchased by cash accounted)
Accounts receivable a/c Dr 12,100.00
To sales a/c 12,100.00
(Being sales made on account accounted)
Cost of goods sold a/c Dr     8,100.00
To inventory a/c     8,100.00
(Being sale related cost accounted)
Salaries and wages a/c Dr     1,900.00
To cash a/c     1,900.00
(Being salaries paid accounted)
Accounts payable a/c Dr     9,300.00
To cash a/c     9,114.00
To Discount received a/c 186
(Being accounts payable paid receiving 2% discount on 9300, 186)
Cash A/c Dr 11,737.00
Discount given a/c Dr        363.00
To Accounts receivable a/c 12,100.00
(Being accounts receivable cleared by giving discount of 3% on 12,100=363)
adjustment entries:
Salaries and wages a/c Dr        800.00
To salaries and wages payable a/c        800.00
(Being salaries and wages accured)
Depreciation a/c Dr        200.00
To accumulated depreciation a/c        200.00
(Being depreciation accounted)
Supplies expenses a/c Dr     2,000.00
To Supplies inventory a/c     2,000.00
(Being supplies transferred from inventory a/c to expenses a/c to maintain closing stock as 1400)
Cash A/c
(Amount $) (Amount $)
Debit Credit
To bal b/d     7,400.00 Salaries and wages a/c          600.00
Accounts receivable a/c 11,737.00 Salaries and wages payable a/c       1,000.00
Accounts receivable a/c     1,900.00 Supplies a/c       2,100.00
Salaries and wages a/c       1,900.00
Accounts payable a/c       9,114.00
By bal c/d       6,323.00
21,037.00     21,037.00
Accumulated depreciation a/c
(Amount $) (Amount $)
Debit Credit
By bal b/d       2,200.00
To bal c/d     2,400.00 By Depreciaiton a/c          200.00
    2,400.00       2,400.00
Accounts receivable a/c
(Amount $) (Amount $)
Debit Credit
To bal b/d     4,700.00 By cash a/c     12,100.00
To Sales revenue a/c     6,400.00 By cash a/c       1,900.00
To Sales revenue a/c 12,100.00 By bal c/d       9,200.00
23,200.00     23,200.00
   
Account payable a/c
(Amount $) (Amount $)
Debit Credit
To Cash a/c     9,300.00 By bal c/d       4,500.00
To bal c/d     4,500.00 By merchandise-inventory a/c       9,300.00
13,800.00     13,800.00
Inventory A/c
(Amount $) (Amount $)
Debit Credit
To bal b/d 11,900.00 By Cost of Goods sold a/c       4,100.00
To Accounts payable a/c     9,300.00 By Cost of Goods sold a/c       8,100.00
By bal c/d       9,000.00
21,200.00     21,200.00
   
Salaries and wages payable a/c
(Amount $) (Amount $)
Debit Credit
To cash a/c     1,000.00 By Bal b/d       1,000.00
To Bal c/d        800.00 By salaries and wages a/c          800.00
    1,800.00       1,800.00
Supplies a/c
(Amount $) (Amount $)
Debit Credit
To bal b/d     1,300.00 By Cost of Goods sold a/c       2,000.00
To Accounts payable a/c     2,100.00 By bal c/d       1,400.00
    3,400.00       3,400.00
Common stock a/c
(Amount $) (Amount $)
Debit Credit
    By bal b/d     29,000.00
To bal c/d 29,000.00        
29,000.00     29,000.00
Equipment a/c
(Amount $) (Amount $)
Debit Credit
To bal c/d 22,000.00 By bal b/d     22,000.00
           
22,000.00     22,000.00
Supplies expenses a/c
(Amount $) (Amount $)
Debit Credit
To Cost of Goods sold a/c     2,000.00 By profit and loss a/c       2,000.00
Salaries and wages
(Amount $) (Amount $)
Debit Credit
To Cash a/c        600.00 By Profit and loss a/c     3,300.00
To cash a/c     1,900.00        
To salaries and wages payable a/c        800.00
    3,300.00     3,300.00
Sales a/c
(Amount $) (Amount $)
Debit Credit
To Profit and loss a/c 18,500.00 By Accounts receivable a/c     6,400.00
    By Accounts receivable a/c 12,100.00
   
18,500.00 18,500.00
Cost of goods sold a/c
(Amount $) (Amount $)
Debit Credit
To Merchandise-inventory a/c     8,100.00
To Merchandise-inventory a/c     4,100.00 By profit and loss account 12,200.00
12,200.00 12,200.00
Discount a/c
(Amount $) (Amount $)
Debit Credit
To Cash a/c          363.00 By Cash          186.00
    By Profit and loss a/c          177.00
         363.00          363.00
Depreciation a/c
(Amount $) (Amount $)
Debit Credit
To Accumulated depr          200.00 By profit and loss a/c          200.00
Retained earnings
(Amount $) (Amount $)
Debit Credit
    By bal c/d     10,600.00
To bal c/d 11,223.00 By net profit for the month 623.00
11,223.00     11,223.00
income Statement
For the period ended 31st Dec    
(Amount $) (Amount $)
Sales revenue 18,500.00
Less: Cost of goods sold 12,200.00
                                    6,300.00
Salaries and wages     3,300.00
Supplies expenses a/c     2,000.00
Discount given        363.00
Discount received       (186.00)
Depreciation        200.00                                     5,677.00
Net profit for the period                                        623.00
Balance Sheet
As at Dec 31st
(Amount $) (Amount $)
Assets:
Current assets:
Cash     6,323.00
accounts receivable     9,200.00
inventory     9,000.00
supplies     1,400.00
Total Current Assets                                  25,923.00
Fixed Assets:
Equipment 22,000.00
Less: Accumulated dep-equip     2,400.00                                  19,600.00
Total Assets                                  45,523.00
ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company’s balance sheet at December 31, 2019, is presented...
Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company’s balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December 31, 2019 Cash $30,000 Accounts Payable $12,250 Inventory 30,500 Interest Payable 300 Prepaid Insurance 6,084 Notes Payable 60,000 Equipment 38,520 Owner’s Capital 32,554 $105,104 $105,104 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $300 interest on the note payable on January 1, 2020. The note is due December 31,...
Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company’s balance sheet at December 31, 2019, is presented...
Accounting Cycle Review 11-01 a,b, c1-c3 Morgan Company’s balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December 31, 2019 Cash $31,500 Accounts Payable $12,500 Inventory 30,750 Interest Payable 233 Prepaid Insurance 5,808 Notes Payable 46,500 Equipment 37,800 Owner’s Capital 46,625 $105,858 $105,858 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $233 interest on the note payable on January 1, 2020. The note is due December 31,...
Accounting Cycle Review 6 a- f On December 1, 2020, Bonita Company had the account balances...
Accounting Cycle Review 6 a- f On December 1, 2020, Bonita Company had the account balances shown below. Debit Credit Cash       $5,300       Accumulated Depreciation—Equipment       $1,300 Accounts Receivable       4,000       Accounts Payable       3,600 Inventory       2,760*       Owner’s Capital       30,160 Equipment       23,000                  $35,060               $35,060 *(4,600 x $0.60) The following transactions occurred during December: Dec. 3       Purchased 4,800 units of inventory on account at a cost of...
You cross the following two individuals: Individual 1: A/a;B/b;C1/C2 Individual 2: a/a;B/b;C1/C2 A is fully dominant,...
You cross the following two individuals: Individual 1: A/a;B/b;C1/C2 Individual 2: a/a;B/b;C1/C2 A is fully dominant, B is dominant lethal, whereas C1 and C2 are incompletely dominant The proportion of offspring that are expected to have the same phenotype as individual 1 is _________
Comprehensive Accounting Cycle Review 6 On December 1, 2017, Blue Spruce Corp. had the account balances...
Comprehensive Accounting Cycle Review 6 On December 1, 2017, Blue Spruce Corp. had the account balances shown below. Debits Credits Cash $4,810 Accumulated Depreciation—Equipment $1,550 Accounts Receivable 3,740 Accounts Payable 3,150 Inventory (3,300 x $0.60) 1,980 Common Stock 9,900 Equipment 22,700 Retained Earnings 18,630 $33,230 $33,230 The following transactions occurred during December. Dec. 3 Purchased 4,300 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,700 units of inventory on account for $0.80 per unit....
Comprehensive Accounting Cycle Review 6 On December 1, 2017, Sarasota Corp. had the account balances shown...
Comprehensive Accounting Cycle Review 6 On December 1, 2017, Sarasota Corp. had the account balances shown below. Debits Credits Cash $5,230 Accumulated Depreciation—Equipment $1,600 Accounts Receivable 3,570 Accounts Payable 3,230 Inventory (3,100 x $0.60) 1,860 Common Stock 10,900 Equipment 23,000 Retained Earnings 17,930 $33,660 $33,660 The following transactions occurred during December. Dec. 3 Purchased 4,100 units of inventory on account at a cost of $0.73 per unit. 5 Sold 4,500 units of inventory on account for $0.90 per unit. (It...
Problem 22-03A a-b, c1, d Hill Industries had sales in 2019 of $7,520,000 and gross profit...
Problem 22-03A a-b, c1, d Hill Industries had sales in 2019 of $7,520,000 and gross profit of $1,128,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 101,000 units. At...
On December 1, 2017, Rodriguez Distributing Company had the following account balances.
Comprehensive Problem 5  On December 1, 2017, Rodriguez Distributing Company had the following account balances. During December, the company completed the following summary transactions. Dec. 6 Paid $ 1,500 for salaries and wages due employees, of which $ 500 is for December and $ 1,000 is for November salaries and wages payable. 8 Received $ 1,800 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $ 6,500. The cost of the merchandise sold was...
Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Kingbird had the following...
Comprehensive Accounting Cycle Review 5-02 (Part Level Submission) On November 1, 2022, Kingbird had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $25,200 Accumulated Depreciation—Equipment $2,800 Accounts Receivable 6,272 Accounts Payable 9,520 Supplies 2,408 Unearned Service Revenue 11,200 Equipment 70,000 Salaries and Wages Payable 4,760 $103,880 Common Stock 56,000 Retained Earnings 19,600 $103,880 During November, the following summary transactions were completed. Nov. 8 Paid $9,940 for salaries due employees, of which $5,180 is for...
Comprehensive Accounting Cycle Review 5-2 (Part Level Submission) On November 1, 2017, Teal Mountain Inc. had...
Comprehensive Accounting Cycle Review 5-2 (Part Level Submission) On November 1, 2017, Teal Mountain Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Cash $10,440 Accumulated Depreciation—Equipment $1,160 Accounts Receivable 2,598 Accounts Payable 3,944 Supplies 998 Unearned Service Revenue 4,640 Equipment 29,000 Salaries and Wages Payable 1,972 $43,036 Common Stock 23,200 Retained Earnings 8,120 $43,036 During November, the following summary transactions were completed. Nov. 8 Paid $4,118 for salaries due employees, of which $2,146...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT