E12-3 (Classification Issues - Intangible Asset) Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008.
Organization costs $24,000
Trademarks $15,000
Discount on bonds payable $35,000
Deposits with advertising agency for ads to promote goodwill of company $10,000
Excess of cost over fair value of net identifiable assets of acquired subsidiary $75,000
Cost of equipment acquired for research and development projects; the equipment has an alternative future use $90,000
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years. $80,000
Instructions
a.) On the basis of the information above, compute the total amount to be reported by Hyde for intangible assets on its balance sheet at December 31, 2008.
b.) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
Click here for the solution: Joni Hyde Inc. has the following amounts included in its general ledger at December 31, 2008
Showing posts with label ledger. Show all posts
Showing posts with label ledger. Show all posts
Wednesday, November 11, 2015
Wednesday, October 14, 2015
The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations
E2-10 The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations.
Cash No. 101
4/1 15,000 4/15 600
4/12 900 4/25 1,500
4/29 400
4/30 1,000
Accounts Receivable No. 112
4/7 3,200 4/29 400
Supplies No. 126
4/4 1,800
Accounts Payable No. 201
4/25 1,500 4/4 1,800
Unearned Revenue No. 205
4/30 1,000
Common Stock No. 311
4/1 15,000
Service Revenue No. 400
4/7 3,200
4/12 900
Salaries Expense No. 726
4/15 600
Instructions
(a) Prepare the complete general journal from which the postings to Cash were made.
(b) Prepare a trial balance at April 30, 2008.
Click here for the solution: The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations
Cash No. 101
4/1 15,000 4/15 600
4/12 900 4/25 1,500
4/29 400
4/30 1,000
Accounts Receivable No. 112
4/7 3,200 4/29 400
Supplies No. 126
4/4 1,800
Accounts Payable No. 201
4/25 1,500 4/4 1,800
Unearned Revenue No. 205
4/30 1,000
Common Stock No. 311
4/1 15,000
Service Revenue No. 400
4/7 3,200
4/12 900
Salaries Expense No. 726
4/15 600
Instructions
(a) Prepare the complete general journal from which the postings to Cash were made.
(b) Prepare a trial balance at April 30, 2008.
Click here for the solution: The T accounts below summarize the ledger of Simon Landscaping Company at the end of the first month of operations
Los Lobos Ledger Preparation
1. Los Lobos Ledger Preparation
Review the following information:
12-31-2007 12-31-2006
Cash $ 35,000 $ 32,000
Accounts receivable 33,000 30,000
Allowance for doubtful accounts (1,300) (1,100)
Inventory 31,000 47,000
Property, plant, & equipment 100,000 95,000
Accumulated depreciation (16,500) (15,000)
Trade accounts payable (25,000) (15,500)
Income taxes payable (21,000) (29,100)
Deferred income taxes (5,300) (4,600)
8% callable bonds payable (45,000) (20,000)
Unamortized bond discount 4,500 5,000
Common stock (50,000) (40,000)
Additional paid-in capital (9,100) (7,500)
Retained earnings (25,200) (64,600)
Sales (558,300) (778,700)
Cost of goods sold 250,000 380,000
Selling expenses 141,500 172,000
General and administrative expenses 137,000 151,300
Interest expense 4,300 2,600
Income tax expense 20,400 61,200
$ - $ -
Additional information:
1. Los Lobos purchased $5,000 in equipment during 2007.
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800.
4. $12,000 of the debt is current portion.
Cash Sales $72,600
Collections on Receivables 477,900
Purchases (219,500)
Purchase of Equipment (5,000)
Wages (150,700)
Payments to Suppliers (126,300)
Tax Payments (27,800)
Borrowing 30,000
Repayment of Debt (5,000)
Interest Payments (3,800)
Sale of Stock 11,600
Dividends (51,000)
Prepare a statement of cash flows using the direct and indirect methods.
Prepare a classified balance sheet.
Click here for the solution: Los Lobos Ledger Preparation
Review the following information:
12-31-2007 12-31-2006
Cash $ 35,000 $ 32,000
Accounts receivable 33,000 30,000
Allowance for doubtful accounts (1,300) (1,100)
Inventory 31,000 47,000
Property, plant, & equipment 100,000 95,000
Accumulated depreciation (16,500) (15,000)
Trade accounts payable (25,000) (15,500)
Income taxes payable (21,000) (29,100)
Deferred income taxes (5,300) (4,600)
8% callable bonds payable (45,000) (20,000)
Unamortized bond discount 4,500 5,000
Common stock (50,000) (40,000)
Additional paid-in capital (9,100) (7,500)
Retained earnings (25,200) (64,600)
Sales (558,300) (778,700)
Cost of goods sold 250,000 380,000
Selling expenses 141,500 172,000
General and administrative expenses 137,000 151,300
Interest expense 4,300 2,600
Income tax expense 20,400 61,200
$ - $ -
Additional information:
1. Los Lobos purchased $5,000 in equipment during 2007.
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800.
4. $12,000 of the debt is current portion.
Cash Sales $72,600
Collections on Receivables 477,900
Purchases (219,500)
Purchase of Equipment (5,000)
Wages (150,700)
Payments to Suppliers (126,300)
Tax Payments (27,800)
Borrowing 30,000
Repayment of Debt (5,000)
Interest Payments (3,800)
Sale of Stock 11,600
Dividends (51,000)
Prepare a statement of cash flows using the direct and indirect methods.
Prepare a classified balance sheet.
Click here for the solution: Los Lobos Ledger Preparation
Sunday, September 27, 2015
(Case-It Co) The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010
PR 6-1A The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010:
Cash $37,700 Sales Returns and Allowances $37,800
Accounts Receivable 111,600 Sale Discounts 19,800
Merchandise Inventory 180,000 Cost of Merchandise Sold 1,926,000
Office Supplies 5,000 Sales Salaries Expense 378,000
Prepaid Ins. 12,000 Advertising Expense 50,900
Office Equipment 115,200 Depreciation Exp - Store Equip 8,300
Accumulated Depreciation - Office Equip 49,500 Misc Selling Expense 2,000
Store Equipment 311,500 Office Salaries Expense 73,800
Accumulated Depreciation - Store Equip 87,500 Rent Expense 39,900
A/P 48,600 Insurance Expense 22,950
Salaries Payable 3,600 Depreciation Expense - Office Equip 16,200
Note Payable (final payment due 2025) 54,000 Office Supplies Expense 1,650
Gina Hennessy, Capital 454,800 Misc Admin Exp 1,900
Gina Hennessy, Drawing 45,000 Interest Expense 4,400
Sales 2,703,600
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $8,000
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report form and account form balance sheets differ.
Click here for the solution: The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010
Cash $37,700 Sales Returns and Allowances $37,800
Accounts Receivable 111,600 Sale Discounts 19,800
Merchandise Inventory 180,000 Cost of Merchandise Sold 1,926,000
Office Supplies 5,000 Sales Salaries Expense 378,000
Prepaid Ins. 12,000 Advertising Expense 50,900
Office Equipment 115,200 Depreciation Exp - Store Equip 8,300
Accumulated Depreciation - Office Equip 49,500 Misc Selling Expense 2,000
Store Equipment 311,500 Office Salaries Expense 73,800
Accumulated Depreciation - Store Equip 87,500 Rent Expense 39,900
A/P 48,600 Insurance Expense 22,950
Salaries Payable 3,600 Depreciation Expense - Office Equip 16,200
Note Payable (final payment due 2025) 54,000 Office Supplies Expense 1,650
Gina Hennessy, Capital 454,800 Misc Admin Exp 1,900
Gina Hennessy, Drawing 45,000 Interest Expense 4,400
Sales 2,703,600
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $8,000
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report form and account form balance sheets differ.
Click here for the solution: The following selected accounts and their current balances appear in the ledger of Case-It Co. for the fiscal year ended November 30, 2010
Thursday, September 24, 2015
An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
ACC 560 Week 9 Assignment
E13-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
(a) Payment of interest on notes payable.
(b) Exchange of land for patent.
(c) Sale of building at book value.
(d) Payment of dividends.
(e) Depreciation.
(f) Receipt of dividends on investment in stock.
(g) Receipt of interest on notes receivable.
(h) Issuance of capital stock.
(i) Amortization of patent.
(j) Issuance of bonds for land.
(k) Purchase of land.
(l) Conversion of bonds into common stock.
(m) Loss on sale of land.
(n) Retirement of bonds.
Instructions
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
Click here for the solution: An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
E13-2 An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.
(a) Payment of interest on notes payable.
(b) Exchange of land for patent.
(c) Sale of building at book value.
(d) Payment of dividends.
(e) Depreciation.
(f) Receipt of dividends on investment in stock.
(g) Receipt of interest on notes receivable.
(h) Issuance of capital stock.
(i) Amortization of patent.
(j) Issuance of bonds for land.
(k) Purchase of land.
(l) Conversion of bonds into common stock.
(m) Loss on sale of land.
(n) Retirement of bonds.
Instructions
Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.
Click here for the solution: An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Gagliano Corp
The three accounts shown below appear in the general ledger of Cesar Corp. during 2008
ACC 560 Week 9 Assignment
E13-6 The three accounts shown below appear in the general ledger of Cesar Corp. during 2008.
Equipment
Date Debit Credit Balance
Jan. 1 Balance 160,000
July 31 Purchase of equipment 70,000 230,000
Sept. 2 Cost of equipment constructed 53,000 283,000
Nov. 10 Cost of equipment sold 49,000 234,000
Accumulated Depreciation-Equipment
Date Debit Credit Balance
Jan. 1 Balance 71,000
Nov. 10 Accumulated depreciation on equipment sold 30,000 41,000
Dec. 31 Depreciation for year 28,000 69,000
Retained Earnings
Date Debit Credit Balance
Jan. 1 Balance 105,000
Aug. 23 Dividends (cash) 14,000 91,000
Dec. 31 Net income 67,000 158,000
Instructions
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)
Click here for the solution: The three accounts shown below appear in the general ledger of Cesar Corp. during 2008
E13-6 The three accounts shown below appear in the general ledger of Cesar Corp. during 2008.
Equipment
Date Debit Credit Balance
Jan. 1 Balance 160,000
July 31 Purchase of equipment 70,000 230,000
Sept. 2 Cost of equipment constructed 53,000 283,000
Nov. 10 Cost of equipment sold 49,000 234,000
Accumulated Depreciation-Equipment
Date Debit Credit Balance
Jan. 1 Balance 71,000
Nov. 10 Accumulated depreciation on equipment sold 30,000 41,000
Dec. 31 Depreciation for year 28,000 69,000
Retained Earnings
Date Debit Credit Balance
Jan. 1 Balance 105,000
Aug. 23 Dividends (cash) 14,000 91,000
Dec. 31 Net income 67,000 158,000
Instructions
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on sale of equipment was $5,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $53,000.)
Click here for the solution: The three accounts shown below appear in the general ledger of Cesar Corp. during 2008
Sunday, September 20, 2015
Cardinal Paz Corp. carries an account in its general ledger called Investments
Cardinal Paz Corp. carries an account in its general ledger called
Investments, which contained debits for investment purchases, and no
credits, with the following descriptions.
Feb. 1, 2010 Sharapova Company common stock, $100 par, 200 shares $ 37,400
April 1 U.S. government bonds, 11%, due April 1, 2020, interest payable
April 1 and October 1, 110 bonds of $1,000 par each 110,000
July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2010 purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2030 54,000
Instructions
(Round all computations to the nearest dollar.)
(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.
(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2010 using the straight-line method.
(c) The fair values of the securities on December 31, 2010, were:
Sharapova Company common stock $ 31,800
U.S. government bonds 124,700
McGrath Company bonds 58,600
What entry or entries, if any, would you recommend be made?
(d) The U.S. government bonds were sold on July 1, 2011, for $119,200 plus accrued interest. Give the proper entry.
Click here for the solution: Cardinal Paz Corp. carries an account in its general ledger called Investments
Feb. 1, 2010 Sharapova Company common stock, $100 par, 200 shares $ 37,400
April 1 U.S. government bonds, 11%, due April 1, 2020, interest payable
April 1 and October 1, 110 bonds of $1,000 par each 110,000
July 1 McGrath Company 12% bonds, par $50,000, dated March 1, 2010 purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 2030 54,000
Instructions
(Round all computations to the nearest dollar.)
(a) Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.
(b) Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2010 using the straight-line method.
(c) The fair values of the securities on December 31, 2010, were:
Sharapova Company common stock $ 31,800
U.S. government bonds 124,700
McGrath Company bonds 58,600
What entry or entries, if any, would you recommend be made?
(d) The U.S. government bonds were sold on July 1, 2011, for $119,200 plus accrued interest. Give the proper entry.
Click here for the solution: Cardinal Paz Corp. carries an account in its general ledger called Investments
Tuesday, September 15, 2015
The ledger of Amid Moshref and Alex Weekley, lawyers, contains the following accounts and balances after adjustments
The ledger of Amid Moshref and Alex Weekley, lawyers, contains the following accounts and balances after adjustments have been recorded on December 31, 2010:
Debit Credit
Balances Balances
Cash 24,200
Accounts Receivable 41,300
Supplies 6,700
Land 120,000
Building 160,000
Accumulated Amortization—Building 52,300
Office Equipment 53,000
Accumulated Amortization—Office Equipment 21,300
Accounts Payable 3,400
Salaries Payable 5,200
Amid Moshref, Capital 125,000
Amid Moshref, Withdrawals 50,000
Alex Weekley, Capital 160,000
Alex Weekley, Withdrawals 60,000
Professional Fees 562,200
Salaries Expense 312,300
Amortization Expense 81,700
Property Tax Expense 3,500
Heating and Lighting Expense 11,200
Supplies Expense 3,400
Miscellaneous Expense 2,100
929,400 929,400
The balance in Weekley’s capital account includes an additional investment of $20,000 made on April 5, 2010.
Instructions
1. Prepare an income statement for the current fiscal year, indicating the division of net income as shown on page 568. The articles of partnership provide for salary allowances of $60,000 to Moshref and $75,000 to Weekley, allowances of 12% on each partner’s capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.
2. Prepare a statement of partners’ equity for 2010.
3. Prepare a balance sheet as of the end of 2010.
Check: 2. Dec. 31 capital—Weekley, $182,400
Click here for the solution: The ledger of Amid Moshref and Alex Weekley, lawyers, contains the following accounts and balances after adjustments
Debit Credit
Balances Balances
Cash 24,200
Accounts Receivable 41,300
Supplies 6,700
Land 120,000
Building 160,000
Accumulated Amortization—Building 52,300
Office Equipment 53,000
Accumulated Amortization—Office Equipment 21,300
Accounts Payable 3,400
Salaries Payable 5,200
Amid Moshref, Capital 125,000
Amid Moshref, Withdrawals 50,000
Alex Weekley, Capital 160,000
Alex Weekley, Withdrawals 60,000
Professional Fees 562,200
Salaries Expense 312,300
Amortization Expense 81,700
Property Tax Expense 3,500
Heating and Lighting Expense 11,200
Supplies Expense 3,400
Miscellaneous Expense 2,100
929,400 929,400
The balance in Weekley’s capital account includes an additional investment of $20,000 made on April 5, 2010.
Instructions
1. Prepare an income statement for the current fiscal year, indicating the division of net income as shown on page 568. The articles of partnership provide for salary allowances of $60,000 to Moshref and $75,000 to Weekley, allowances of 12% on each partner’s capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.
2. Prepare a statement of partners’ equity for 2010.
3. Prepare a balance sheet as of the end of 2010.
Check: 2. Dec. 31 capital—Weekley, $182,400
Click here for the solution: The ledger of Amid Moshref and Alex Weekley, lawyers, contains the following accounts and balances after adjustments
Tuesday, September 8, 2015
At the beginning of the current season on April 1, the ledger of Wichita Pro Shop showed Cash $2,500
P5-9A At the beginning of the current season on April 1, the ledger of Wichita Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Common Stock $6,000. These transactions occurred during April, 2010.
Apr. 5 Purchased golf bags, clubs and balls on account from Roland Co. $1,500, terms 3/10, n/60.
7 Paid freight on Roland Co. purchases $80.
9 Received credit from Roland Co. for merchandise returned $200.
10 Sold merchandise on account to members $910, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Eagle Sportswear $830, terms 1/10, n/30.
14 Paid Roland Co. in full.
17 Received credit from Eagle Sportswear for merchandise returned $30.
20 Made sales on account to members $810, terms n/30.
21 Paid Eagle Sportswear in full.
27 Granted credit to members for clothing that did not fit $60.
30 Received payments on account from members $1,100.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions
(c) Prepare a trial balance on April 30, 2010.
(d) Prepare an income statement through gross profit.
Click here for the solution: At the beginning of the current season on April 1, the ledger of Wichita Pro Shop showed Cash $2,500
Apr. 5 Purchased golf bags, clubs and balls on account from Roland Co. $1,500, terms 3/10, n/60.
7 Paid freight on Roland Co. purchases $80.
9 Received credit from Roland Co. for merchandise returned $200.
10 Sold merchandise on account to members $910, terms n/30.
12 Purchased golf shoes, sweaters, and other accessories on account from Eagle Sportswear $830, terms 1/10, n/30.
14 Paid Roland Co. in full.
17 Received credit from Eagle Sportswear for merchandise returned $30.
20 Made sales on account to members $810, terms n/30.
21 Paid Eagle Sportswear in full.
27 Granted credit to members for clothing that did not fit $60.
30 Received payments on account from members $1,100.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions
(c) Prepare a trial balance on April 30, 2010.
(d) Prepare an income statement through gross profit.
Click here for the solution: At the beginning of the current season on April 1, the ledger of Wichita Pro Shop showed Cash $2,500
Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger
Bluma Co. uses a perpetual inventory system and both an accounts
receivable and an accounts payable subsidiary ledger. Balances related
to both the general ledger and the subsidiary ledger for Bluma are
indicated in the working papers. Presented below are a series of
transactions for Bluma Co. for the month of January. Credit sales terms
are 2/10, n/30. The cost of all merchandise sold was 60% of the sales
price.
Jan. 3 Sell merchandise on account to B. Richey $3,100, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.
5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.
7 Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.
9 Issue credit of $300 to J. Forbes for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.
12 Pay rent of $1,000 for January.
13 Receive payment in full from B. Richey and J. Forbes less cash discounts.
15 Withdraw $800 cash by M. Bluma for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to S. Hoyt and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
21 Receive payment in full from S. LaDew less cash discount.
22 Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $1,300, invoice no. 515.
22 Post all entries to the subsidiary ledgers.
23 Send checks to D. Omara and S. Hoyt in full payment less cash discounts.
25 Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.
27 Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $200 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay sales salaries $4,300 and office salaries $3,800.
Instructions
(a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown on page 313, a cash payments journal as shown on page 318, and a two-column general journal.
(b) Post the journals to the general ledger.
(c) Prepare a trial balance at January 31, 2010, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on October 31, 2010.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
TB totals $202,900; Adj. T/B totals $203,075
(d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January.
Net income $20,755; total assets $143,505
(e) Prepare and post adjusting and closing entries.
(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
PCTB $145,130
Click here for the solution: Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger
Jan. 3 Sell merchandise on account to B. Richey $3,100, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.
5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.
7 Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.
8 Pay freight on merchandise purchased $235.
9 Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.
9 Issue credit of $300 to J. Forbes for merchandise returned.
10 Summary daily cash sales total $15,500.
11 Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.
12 Pay rent of $1,000 for January.
13 Receive payment in full from B. Richey and J. Forbes less cash discounts.
15 Withdraw $800 cash by M. Bluma for personal use.
15 Post all entries to the subsidiary ledgers.
16 Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.
17 Pay $400 cash for office supplies.
18 Return $200 of merchandise to S. Hoyt and receive credit.
20 Summary daily cash sales total $20,100.
21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.
21 Receive payment in full from S. LaDew less cash discount.
22 Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $1,300, invoice no. 515.
22 Post all entries to the subsidiary ledgers.
23 Send checks to D. Omara and S. Hoyt in full payment less cash discounts.
25 Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.
27 Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.
27 Post all entries to the subsidiary ledgers.
28 Pay $200 cash for office supplies.
31 Summary daily cash sales total $21,300.
31 Pay sales salaries $4,300 and office salaries $3,800.
Instructions
(a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown on page 313, a cash payments journal as shown on page 318, and a two-column general journal.
(b) Post the journals to the general ledger.
(c) Prepare a trial balance at January 31, 2010, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.
1. Office supplies at January 31 total $900.
2. Insurance coverage expires on October 31, 2010.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.
TB totals $202,900; Adj. T/B totals $203,075
(d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January.
Net income $20,755; total assets $143,505
(e) Prepare and post adjusting and closing entries.
(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.
PCTB $145,130
Click here for the solution: Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger
Monday, August 31, 2015
On January 1, 2008, the ledger of Mane Company contains the following liability accounts
P11-1A On January 1, 2008, the ledger of Mane Company contains the following liability accounts.
Accounts Payable $52,000
Sales Taxes Payable 7,700
Unearned Service Revenue 16,000
During January the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $22,680, which includes 8% sales taxes.
12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2007 ($7,700).
20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax.
21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note.
25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the UCLA Bank note.)
(c) Prepare the current liabilities section of the balance sheet at January 31, 2008. Assume no
change in accounts payable.
Click here for the solution: On January 1, 2008, the ledger of Mane Company contains the following liability accounts
Accounts Payable $52,000
Sales Taxes Payable 7,700
Unearned Service Revenue 16,000
During January the following selected transactions occurred.
Jan. 5 Sold merchandise for cash totaling $22,680, which includes 8% sales taxes.
12 Provided services for customers who had made advance payments of $10,000. (Credit Service Revenue.)
14 Paid state revenue department for sales taxes collected in December 2007 ($7,700).
20 Sold 800 units of a new product on credit at $50 per unit, plus 8% sales tax.
21 Borrowed $18,000 from UCLA Bank on a 3-month, 8%, $18,000 note.
25 Sold merchandise for cash totaling $12,420, which includes 8% sales taxes.
Instructions
(a) Journalize the January transactions.
(b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the UCLA Bank note.)
(c) Prepare the current liabilities section of the balance sheet at January 31, 2008. Assume no
change in accounts payable.
Click here for the solution: On January 1, 2008, the ledger of Mane Company contains the following liability accounts
Saturday, August 22, 2015
On January 1, 2006, the ledger of Shumway Software Company contains the following liability accounts
P11-1A On January 1, 2006, the ledger of Shumway Software Company contains the following liability accounts.
Accounts payable $42,500
Sales Taxes payable 5,800
Unearned service revenue 15,000
During January the following selected transactions occurred.
Jan. 1: Borrowed $15,000 in cash from Amsterdam bank on a 4 month 8%, $15,000 note.
Jan. 5: Sold merchandise for cash totaling $10,400 which includes 4% sales taxes.
Jan. 12: Provided services for customers who had made advance payments of $9,000. (Credit service revenue)
Jan. 14: Paid state treasurer's dept. for sales tax collected in Dec. 2005, $5,800.
Jan 20: Sold 700 units of a new product on credit at $52 per unit, plus 4% sales tax.
Jan 25: Sold merchandise for cash totaling $12,480, which includes 4% sales tax.
Instructions:
a. Journalize the January transactions.
b. Journalize the adjusting entry at January 31 for the outstanding notes payable.
c. Prepare the current liabilities section of the balance sheet at Jan 31, 2006. Assume no change in accounts payable. (current liability total $65,936)
Click here for the solution: On January 1, 2006, the ledger of Shumway Software Company contains the following liability accounts
Accounts payable $42,500
Sales Taxes payable 5,800
Unearned service revenue 15,000
During January the following selected transactions occurred.
Jan. 1: Borrowed $15,000 in cash from Amsterdam bank on a 4 month 8%, $15,000 note.
Jan. 5: Sold merchandise for cash totaling $10,400 which includes 4% sales taxes.
Jan. 12: Provided services for customers who had made advance payments of $9,000. (Credit service revenue)
Jan. 14: Paid state treasurer's dept. for sales tax collected in Dec. 2005, $5,800.
Jan 20: Sold 700 units of a new product on credit at $52 per unit, plus 4% sales tax.
Jan 25: Sold merchandise for cash totaling $12,480, which includes 4% sales tax.
Instructions:
a. Journalize the January transactions.
b. Journalize the adjusting entry at January 31 for the outstanding notes payable.
c. Prepare the current liabilities section of the balance sheet at Jan 31, 2006. Assume no change in accounts payable. (current liability total $65,936)
Click here for the solution: On January 1, 2006, the ledger of Shumway Software Company contains the following liability accounts
Property Tax- Record the following transactions in the general ledger account of the Coleman County General Fund
Property Tax- Record the following transactions in the general ledger account of the Coleman County General Fund.
1. Coleman County levied its 20x7 property tax on Jan 1, 20x7. The total tax levy was 80,000,000; 2% is expected to be uncollectible.
2. Coleman collected 55,000,000 of property taxes before the due date. The remaining taxes are past due.
3. Interest and penalties 0f 2,500,000 were assessed on the past due taxes. 6% is expected to be uncollectible.
4. Coleman County collected 20,000,m0000 of delinquent taxes and 2,000,000 of interest and penalties at the end of 20x7, Coleman estimates that it will collect 3,000,000 of delinquent taxes and 300,000 of the previously accrued interest and penalties in the first 60 days of 20x8.
Click here for the solution: Property Tax- Record the following transactions in the general ledger account of the Coleman County General Fund
1. Coleman County levied its 20x7 property tax on Jan 1, 20x7. The total tax levy was 80,000,000; 2% is expected to be uncollectible.
2. Coleman collected 55,000,000 of property taxes before the due date. The remaining taxes are past due.
3. Interest and penalties 0f 2,500,000 were assessed on the past due taxes. 6% is expected to be uncollectible.
4. Coleman County collected 20,000,m0000 of delinquent taxes and 2,000,000 of interest and penalties at the end of 20x7, Coleman estimates that it will collect 3,000,000 of delinquent taxes and 300,000 of the previously accrued interest and penalties in the first 60 days of 20x8.
Click here for the solution: Property Tax- Record the following transactions in the general ledger account of the Coleman County General Fund
Friday, August 21, 2015
The following information has been taken from the ledger accounts of Isaac Stern Corporation
E15-16 (Computation of Retained Earnings) The following information has been taken from the ledger accounts of Isaac Stern Corporation
Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000
Instructions: Determine the current balance of retained earnings.
Click here for the solution: The following information has been taken from the ledger accounts of Isaac Stern Corporation
Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000
Instructions: Determine the current balance of retained earnings.
Click here for the solution: The following information has been taken from the ledger accounts of Isaac Stern Corporation
Tuesday, August 4, 2015
The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2011
P11-8A The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2011.
Common Stock ($10 stated value) $1,500,000
Paid-in Capital from Treasury Stock 6,000
Paid-in Capital in Excess of Stated Value-Common Stock 690,000
Paid-in Capital in Excess of Par Value-Preferred Stock 288,400
Preferred Stock (8%, $100 par, noncumulative) 400,000
Retained Earnings 776,000
Treasury Stock-Common (8,000 shares) 88,000
Complete the stockholders' equity section at December 31, 2011.
Click here for the solution: The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2011
Common Stock ($10 stated value) $1,500,000
Paid-in Capital from Treasury Stock 6,000
Paid-in Capital in Excess of Stated Value-Common Stock 690,000
Paid-in Capital in Excess of Par Value-Preferred Stock 288,400
Preferred Stock (8%, $100 par, noncumulative) 400,000
Retained Earnings 776,000
Treasury Stock-Common (8,000 shares) 88,000
Complete the stockholders' equity section at December 31, 2011.
Click here for the solution: The following stockholders' equity accounts arranged alphabetically are in the ledger of McGrath Corporation at December 31, 2011
The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012
Problem 6-1A Multiple-Step Income Statement and Report-Form of Balance Sheet
The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012:
AND SO ON
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $16,000.
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report form and account-form balance sheets differ.
Check: 1. Net Income: $775,000
Click here for the solution: The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012
The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012:
AND SO ON
Instructions
1. Prepare a multiple-step income statement.
2. Prepare a statement of owner's equity.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $16,000.
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report form and account-form balance sheets differ.
Check: 1. Net Income: $775,000
Click here for the solution: The following selected accounts and their current balances appear in the ledger of Carpet Land Co. for the fiscal year ended October 31, 2012
Monday, August 3, 2015
The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000
E8-3 The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000.
Instructions
a) If Hixson uses the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that fells 1.400 balance is uncollectible.
b) If allowance for doubtful accounts has a credit balance of 2,100 in the trial balance journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1 % of net sales, and (2) 10 % of accounts receivable
c) If allowance for doubtful accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.
Click here for the solution: The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000
Instructions
a) If Hixson uses the direct write off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Hixson determines that fells 1.400 balance is uncollectible.
b) If allowance for doubtful accounts has a credit balance of 2,100 in the trial balance journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1 % of net sales, and (2) 10 % of accounts receivable
c) If allowance for doubtful accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.
Click here for the solution: The ledger of Hixson Company at the end of the current year shows accounts receivable 120,000, sales 840,000 and sales returns and allowance 30,000
Saturday, August 1, 2015
The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared
E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 6,300
Rent Revenue 60,000
Interest Expense –0–
Wage Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $650.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense. (Omit explanations.)
Click here for the solution: The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 6,300
Rent Revenue 60,000
Interest Expense –0–
Wage Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was earned during the quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $650.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense; Insurance Expense; Interest Payable; and Supplies Expense. (Omit explanations.)
Click here for the solution: The ledger of Chopin Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared
Sunday, July 12, 2015
At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200
P5-7A At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200. The following transactions were completed during April.
Apr. 4 Purchased racquets and balls from Denton Co. $740, terms 3/10, n/30.
6 Paid freight on Denton Co. purchase $60.
8 Sold merchandise to members $900, terms n/30.
10 Received credit of $40 from Denton Co. for a damaged racquet that was returned.
11 Purchased tennis shoes from Newbee Sports for cash $300.
13 Paid Denton Co. in full.
14 Purchased tennis shirts and shorts from Venus's Sportswear $600, terms 2/10, n/60.
15 Received cash refund of $50 from Newbee Sports for damaged merchandise that was returned.
17 Paid freight on Venus's Sportswear purchase $30.
18 Sold merchandise to members $1,000, terms n/30.
20 Received $500 in cash from members in settlement of their accounts.
21 Paid Venus's Sportswear in full.
27 Granted an allowance of $30 to members for tennis clothing that did not fit properly.
30 Received cash payments on account from members $500.
The chart of accounts for the tennis shop includes Cash; Accounts Receivable; Merchandise Inventory; Accounts Payable; Common Stock; Sales; Sales Returns and Allowances; Purchases; Purchase Returns and Allowances; Purchase Discounts; and Freight-in.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T accounts, enter the beginning balances in the ledger accounts and post the April Transactions.
(c) Prepare a trial balance on April 30, 2008.
(d) Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $2,296.
Click here for the solution: At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200
Apr. 4 Purchased racquets and balls from Denton Co. $740, terms 3/10, n/30.
6 Paid freight on Denton Co. purchase $60.
8 Sold merchandise to members $900, terms n/30.
10 Received credit of $40 from Denton Co. for a damaged racquet that was returned.
11 Purchased tennis shoes from Newbee Sports for cash $300.
13 Paid Denton Co. in full.
14 Purchased tennis shirts and shorts from Venus's Sportswear $600, terms 2/10, n/60.
15 Received cash refund of $50 from Newbee Sports for damaged merchandise that was returned.
17 Paid freight on Venus's Sportswear purchase $30.
18 Sold merchandise to members $1,000, terms n/30.
20 Received $500 in cash from members in settlement of their accounts.
21 Paid Venus's Sportswear in full.
27 Granted an allowance of $30 to members for tennis clothing that did not fit properly.
30 Received cash payments on account from members $500.
The chart of accounts for the tennis shop includes Cash; Accounts Receivable; Merchandise Inventory; Accounts Payable; Common Stock; Sales; Sales Returns and Allowances; Purchases; Purchase Returns and Allowances; Purchase Discounts; and Freight-in.
Instructions
(a) Journalize the April transactions using a periodic inventory system.
(b) Using T accounts, enter the beginning balances in the ledger accounts and post the April Transactions.
(c) Prepare a trial balance on April 30, 2008.
(d) Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $2,296.
Click here for the solution: At the beginning of the current season, the ledger of Village Tennis Shop showed Cash $2,500; Merchandise Inventory $1,700; and Common Stock $4,200
Thursday, July 2, 2015
The general ledger account for Accounts Receivable shows a debit balance of $40,000
The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000. Net sales for the year were $250,000. In the past, 3 percent of net sales have proved uncollectible. An aging of accounts receivable results in an estimate of $9,000 of uncollectible accounts receivable.
Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.
Create an Excel spreadsheet to submit your assignment.
Click here for the solution: The general ledger account for Accounts Receivable shows a debit balance of $40,000
Calculate (1) Uncollectible Accounts Expense and (2) the ending balance of the Allowance for Uncollectible Accounts using (a) the percentage of net sales method and (b) the accounts receivable aging method.
Create an Excel spreadsheet to submit your assignment.
Click here for the solution: The general ledger account for Accounts Receivable shows a debit balance of $40,000
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