In: Accounting
eginning balances of FRS Company’s accounts as of January 1, 2018 as given below:
Beg Balance |
||
Account Title |
Debit |
Credit |
Cash |
365,800 |
|
Accounts Receivable |
42,500 |
|
Supplies |
13,000 |
|
Prepaid Insurance |
0 |
|
Inventory |
18,000 |
|
Equipment |
46,000 |
|
Accumulated Depreciation-Equipment |
20,000 |
|
Accounts Payable |
82,500 |
|
Salary Payable |
16,000 |
|
Unearned Sales Revenue |
25,000 |
|
Capital |
341,800 |
|
Withdrawals |
0 |
|
Sales Revenue |
||
Sales Returns& Allowances |
||
Sales Discounts |
||
Cost of Goods Sold |
||
Insurance Expense |
||
Depreciation Expense-Equipment |
||
Supplies Expense |
||
Salary Expense |
||
Total |
485,300 |
485,300 |
During January 2018, FRS Company completed the following transactions:
On January 31, 2018 FRS Company completed following adjusting entries:
Requirements:
Pre-apid insurance | 10800 | |
To cash | 10800 | |
(being insurance premium paid) | ||
Purchases | 32000 | |
To accounts payable | 32000 | |
(being purchase of 400 units from great company) | ||
Commission and freight | 2000 | |
To cash | 2000 | |
Purchases | 13500 | |
To accounts payable | 13500 | |
Accrued salaries | 16000 | |
To cash | 16000 | |
(being accrued salary paid) | ||
Accounts payable | 32000 | |
To cash | 32000 | |
(being cash paid to great company post discount period) | ||
Accounts Receivable | 90000 | |
To Sales | 90000 | |
(being sold 600 units to shine company) | ||
Cost of goods sold | 48000 | |
To purchases | 48000 | |
(being purchases assigned to goods sold) | ||
Sales return | 7500 | |
Accounts receivable | 7500 | |
(Being sales return accounted) | ||
Inventory | 4250 | |
To cost of goods sold | 4250 | |
(COGS reversed on return) | ||
Cash | 88200 | |
Discount | 1800 | |
To accounts receivable | 90000 | |
(being cash received from receivables) | ||
Accounts receivable | 6000 | |
To Sales | 6000 | |
(being sales made) | ||
Cost of goods sold | 3350 | |
To Purchases | 3350 | |
(being debited from inventory) | ||
Supplies | 13000 | |
To cash | 13000 | |
(being supplies purchased) | ||
Insurance | 1800 | |
To prepaid insurance | 1800 | |
(insurance expensed) | ||
Depreciation | 8500 | |
To accumulated depreciationon equipment) | 8500 | |
(depreciation accounted for) | ||
Supplies expense | 12000 | |
To Supplies | 12000 | |
(being supplies used) | ||
Unearned revenue | 13000 | |
To Sales | 13000 | |
(revenue earned during the period) | ||
Salaries and Wage | 16000 | |
To accrued salaries payable | 16000 | |
(Salaries payable) |
Cash | |||
Particulars | Amount | Particulars | Amount |
Opening | 365800 | By Prepaid Insurance | 10800 |
To accounts receivable | 88200 | By Commission and freight | 2000 |
By accrued salary | 16000 | ||
By Accounts payable | 32000 | ||
By Supplies | 13000 | ||
By Balance | 380200 | ||
454000 | 454000 | ||
Accounts Receivable | |||
Particulars | Amount | Particulars | Amount |
Opening | 42500 | By Sales return | 7500 |
To sales | 90000 | By discount | 1800 |
To Sales | 6000 | By Cash | 88200 |
By Balance | 41000 | ||
138500 | 138500 | ||
Supplies | |||
Particulars | Amount | Particulars | Amount |
Opening | 13000 | By Supplies expense | 12000 |
To cash | 13000 | By Balance | 14000 |
26000 | 26000 | ||
Prepaid insurance | |||
Particulars | Amount | Particulars | Amount |
Opening | 0 | By Insurance expense | 1800 |
To cash | 10800 | By Balance | 9000 |
10800 | 10800 | ||
Inventory | |||
Particulars | Amount | Particulars | Amount |
Opening | 18000 | By cost of goods sold | 47100 |
To purchase | 32000 | By inventory | 16400 |
To purchase | 13500 | ||
Equipment | |||
Particulars | Amount | Particulars | Amount |
Opening | 46000 | By balance | 46000 |
Accumulated depreciation | |||
Particulars | Amount | Particulars | Amount |
Opening | 20000 | ||
By balance | 28500 | To depreciation | 8500 |
28500 | 28500 | ||
Accounts payable | |||
Particulars | Amount | Particulars | Amount |
To cash | 32000 | Opening | 82500 |
By balance | 96000 | By purchase | 32000 |
By purchase | 13500 | ||
128000 | 128000 | ||
Salary payable | |||
Particulars | Amount | Particulars | Amount |
To cash | 16000 | Opening | 16000 |
To balance | 16000 | To salaries expense | 16000 |
32000 | 32000 | ||
Unearned sales revenue | |||
Particulars | Amount | Particulars | Amount |
To sales | 13000 | Opening | 25000 |
To balance | 12000 | ||
25000 | 25000 | ||
Capital | |||
Particulars | Amount | Particulars | Amount |
Opening | 341800 | ||
Balance | 351850 | Profit | 10050 |
351850 | 351850 | ||
Sales | |||
Particulars | Amount | Particulars | Amount |
By accounts receivable | 90000 | ||
By P&L | 109000 | By accounts receivable | 6000 |
By unearned reveneue | 13000 | ||
109000 | 109000 | ||
Sales returns | |||
Particulars | Amount | Particulars | Amount |
opening | 0 | ||
To accounts receivable | 7500 | By P&L | 7500 |
7500 | 7500 | ||
Sales discounts | |||
Particulars | Amount | Particulars | Amount |
opening | 0 | ||
To accounts receivable | 1800 | By P&L | 1800 |
1800 | 1800 | ||
Cost of goods sold | |||
Particulars | Amount | Particulars | Amount |
opening | 0 | Return | 4250 |
To purchases | 48000 | ||
To purchases | 3350 | By P&L | 47100 |
51350 | 51350 | ||
Insurance expense | |||
Particulars | Amount | Particulars | Amount |
Opening | 0 | ||
Prepaid insurance | 1800 | By P&L | 1800 |
1800 | 1800 | ||
Depreciation expense | |||
Particulars | Amount | Particulars | Amount |
Opening | 0 | ||
Accumulated depreciation on equipment | 8500 | By P&L | 8500 |
8500 | 8500 | ||
Supplies expense | |||
Particulars | Amount | Particulars | Amount |
Opening | 0 | ||
Accumulated depreciation on equipment | 12000 | By P&L | 12000 |
12000 | 12000 | ||
Salary expense | |||
Particulars | Amount | Particulars | Amount |
Opening | 0 | ||
Accrued salary | 16000 | By P&L | 16000 |
16000 | 16000 | ||
Inventory | |||||||||
Purchase | Sales | Balance | |||||||
Paticulars | Qty | Price | Qty | Price | Qty | Price | |||
Opening | 225 | 80 | 18000 | 225 | 80 | 18000 | |||
Purchases | 400 | 80 | 32000 | 625 | 80 | 50000 | |||
Purchases | 150 | 90 | 13500 | 625 | 80 | 50000 | |||
150 | 90 | 13500 | |||||||
Sales | 600 | 80 | 48000 | 25 | 80 | 2000 | |||
150 | 90 | 13500 | |||||||
Sales return | 50 | 85 | 4250 | 25 | 80 | 2000 | |||
150 | 90 | 13500 | |||||||
50 | 85 | 4250 | |||||||
Sales | 40 | 83.75 | 3350 | 135 | 90 | 12150 | |||
50 | 85 | 4250 | |||||||
185 | 16400 | ||||||||
Assuming sales return was considered as purchase on date of return the goods and hence acc to FIFO they were added later than the goods costing 90 rs and 80 rs each) |
Trail Balance | Unadjusted | Adjusted | |||
Cash | 3,80,200 | 380200 | |||
Accounts Receivable | 41,000 | 41000 | |||
Supplies | 26,000 | 14000 | |||
Prepaid Insurance | 10800 | 9000 | |||
Inventory | 16,400 | 16400 | |||
Equipment | 46,000 | 46000 | |||
Accumulated Depreciation-Equipment | 20,000 | 28500 | |||
Accounts Payable | 96,000 | 96000 | |||
Salary Payable | 16,000 | 16000 | |||
Unearned Sales Revenue | 25,000 | 12000 | |||
Capital | 3,41,800 | 3,41,800 | |||
Withdrawals | 0 | 0 | |||
Sales Revenue | 96000 | 109000 | |||
Sales Returns& Allowances | 7500 | 7500 | 7500 | ||
Sales Discounts | 1800 | 1800 | 1800 | ||
Cost of Goods Sold | 47100 | 47100 | 40500 | ||
Insurance Expense | 0 | 1800 | |||
Depreciation Expense-Equipment | 0 | 8500 | |||
Supplies Expense | 0 | 12000 | |||
Salary | 16000 | 16000 | 16000 | ||
Commission and freight | 2000 | 0 | 2000 | ||
5,94,800 | 5,94,800 | 6,03,300 | 6,03,300 |