Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations Req. 2 Comprehensive Problem Chs 1-5 St. Paul Technology Worksheet For the Month Ended January 31, 2012 ADJUSTED ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE INCOME STATEMENT BALANCE SHEET DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash ,260 ,260 ,260 Accounts receivable 18,930 18,930 18,930 Inventory 65,000 (e) ,540 6,,460 Supplies 2,580 (a) 1,400 1,180 1,180 Building 188,,,090 Accum. Depre. - building ,300 (b) 3,800 ,100 ,100 Furniture 44,800 44,800 44,800 Accum. Depre. - furniture 5,500 (b) 4,600 10,100 10,100 Accounts payable 27,900 27,900 27,900 Salary payable 0 (d) 1,100 1,100 1,100 Unearned sales revenue 6,480 (c) ,420 2,060 2,060 Note payable, long-term 85,000 85,000 85,000 Tarsus, capital 152,,,190 Tarsus, drawing 9,100 9,100 9,100 Sales revenue 179,930 (c) 4,,350 4,350 Sales discounts 7,100 7,100 7,100 Sales returns and allowances 8,080 8,080 8,080 Cost of goods sold 101,900 (e) 1,,,440 Selling expense 21,380 (a) 700 24,180 24,180 (b) 950* (b) 1,150* General expense 9,080 (a) 700 17,180 17,180 (b) 2,850* (b) 3,450* (d) 1,100 2,300 2,300 ,860 ,860 1,800 1,800 9,980 4,350 1,820 7,450 Net income 24,370 24,370 4,350 4,350 1,820 1,820 *Students may combine the b-1 and b-2 amounts as

Comprehensive Problem Chapters 1 5 Solutions For Requirements 1 And

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations Req. 2 Comprehensive Problem Chs 1-5 St. Paul Technology Worksheet For the Month Ended January 31, 2012 ADJUSTED ACCOUNT TITLE TRIAL BALANCE ADJUSTMENTS TRIAL BALANCE INCOME STATEMENT BALANCE SHEET DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Cash $16,260 $16,260 $16,260 Accounts receivable 18,930 18,930 18,930 Inventory 65,000 (e) $1,540 6,,460 Supplies 2,580 (a) 1,400 1,180 1,180 Building 188,,,090 Accum. Depre. - building $35,300 (b) 3,800 $39,100 $39,100 Furniture 44,800 44,800 44,800 Accum. Depre. - furniture 5,500 (b) 4,600 10,100 10,100 Accounts payable 27,900 27,900 27,900 Salary payable 0 (d) 1,100 1,100 1,100 Unearned sales revenue 6,480 (c) $4,420 2,060 2,060 Note payable, long-term 85,000 85,000 85,000 Tarsus, capital 152,,,190 Tarsus, drawing 9,100 9,100 9,100 Sales revenue 179,930 (c) 4,,350 $184,350 Sales discounts 7,100 7,100 7,100 Sales returns and allowances 8,080 8,080 8,080 Cost of goods sold 101,900 (e) 1,,,440 Selling expense 21,380 (a) 700 24,180 24,180 (b) 950* (b) 1,150* General expense 9,080 (a) 700 17,180 17,180 (b) 2,850* (b) 3,450* (d) 1,100 $492,300 $492,300 $16,860 $16,860 $501,800 $501,800 $159,980 $184,350 $341,820 $317,450 Net income 24,370 24,370 $184,350 $184,350 $341,820 $341,820 *Students may combine the b-1 and b-2 amounts as $2,100 Selling expense and $6,300 General expense.

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req. 3 (financial statements) St. Paul Technology Income Statement Month Ended January 31, 2012 Revenue: Sales revenue $184,350 Less: Sales returns and allowances $88,080 Sales discounts 7,100 15,180 Net sales revenue $169,170 Cost of goods sold 103,440 Gross profit $65,730 Operating expenses: Selling expense $24,180 General expense 17,180 41,360 Net income $24,370 St. James Technology Statement of Owner’s Equity Month Ended January 31, 2012 Tarsus, capital, January 1, 2012 $152,190 Net income 24,,560 Drawing (9,100) Tarsus, capital, January 31, 2012 $167,460 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req.

3 (financial statements) St. Paul Technology Balance Sheet January 31, 2012 ASSETS Current assets: Cash $ 16,260 Accounts receivable 18,930 Inventory 63,460 Supplies 1,180 Total current assets 99,830 Plant assets: Building $188,090 Accumulated depreciation— building (39,,990 Furniture $44,800 Accumulated depreciation— furniture (10,,700 Total assets $283,520 LIABILITIES Current liabilities: Accounts payable $27,900 Salary payable 1,100 Unearned sales revenue 2,060 Total current liabilities 31,060 Long-term liabilities: Note payable, long-term 85,000 Total liabilities 116,060 OWNER’S EQUITY Tarsus, capital 167,460 Total liabilities and owner’s equity $283,520 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req.

4 (adjusting and closing entries) Journal Entry DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Adjusting Entries 2012 a. Jan 31 Selling expense 700 General expense 700 Supplies 1,400 b. 31 Selling expense 950 General expense 2,850 Accumulated depreciation— building 3,800 b.

31 Selling expense 1,150 General expense 3,450 Accumulated depreciation— furniture 4,600 c. 31 Unearned sales revenue 4,420 Sales revenue 4,420 d. 31 General expense 1,100 Salary payable 1,100 e. 31 Cost of goods sold 1,540 Inventory 1,540 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req. 4 (adjusting and closing entries) Journal Entry DATE ACCOUNTS AND EXPLANATIONS POST.

REF. DEBIT CREDIT Closing Entries Jan 31 Sales revenue 184,350 Sales discounts 7,100 Sales returns and allowances 8,080 Income summary 169, Income summary 144,800 Cost of goods sold 103,440 Selling expense 24,180 General expense 17, Income summary ($169,170 − $144,,370 Tarsus, capital 24, Tarsus, capital 9,100 Tarsus, drawing 9,100 Completing a Merchandiser's Accounting Cycle The end-of-month trial balance of St. Paul Technology at January 31, 2012, follows: St. Paul Technology Trial Balance January 31, 2012 Account Debit Credit Cash $ 16,260 Accounts Receivable $ 18,930 Inventory $ 65,000 Supplies $ 2,580 Building $ 188,090 Accumulated Depreciation-Building $ 35,300 Furniture $ 44,800 Accumulated Depreciation- Furniture $ 5,500 Accounts Payable $ 27,900 Salary Payable Unearned sales revenue $ 6,480 Notes Payable, Long-Term $ 85,000 Tarsus, Capital $ 152,190 Tarsus, Drawing $ 9,100 Sales Revenue $ 179,930 Sales Discounts $ 7,100 Sales returns and allowances $ 8,080 Cost of Goods Sold $ 101,900 Selling Expense $ 21,380 General Expense $ 9,080 Total $ 492,300 $ 492,300 Additional data at January 31, 2012: A: Supplies consumed during the month $1,400.

Half is selling expense, and the other half is general expense. B: Depreciation for the month: Building, $3,800; furniture, $4,600. One-fourth of depreciation is selling expense, and three-fourths is general expense. C: Unearned sales revenue earned during January, $4,420. D: Accrued salaries, a general expense $1,100.

E: Inventory on hand, $63,460. St. Paul uses the perpetual inventory system. Requirements: 1) Using four column accounts, open the accounts listed on the trial balance, inserting their unadjusted balances. Date the balances of the following accounts January 1: Supplies; Building; Accumulated depreciation--building; Furniture; Accumulated depreciation--furniture; Unearned sales revenue; Tarsus, Capital.

Date the balance of Tarsus, Drawing, January 31. Also open the Income Summary account. 2) Enter the trial balance on an accounting work sheet, complete the and complete the work sheet for the month ended January 31, 2012. St. Paul Technology groups all operating expenses under two accounts, Selling Expense and General Expense.

Leave two blank lines under Selling expense and three blank lines under General Expense. 3) Prepare the company's multi-step income statement and statement of owner's equity for the month ended January 31, 2012. Also prepare the balance sheet at that date in report form. 4) Journalize the adjusting and closing entries at January 31. 5) Post the adjusting and closing entries.

Journal Date Accounts and Explanations Post Ref. Debit Credit 2012 Adjusting Entries Jan. a) 31 Selling Expense $ 700 General Expense $ 700 Supplies $ 1,400 b) 31 Selling Expense $ 950 General Expense $ 2,850 Accumulated Dep. - Building $ 3,800 b) 31 Selling Expense $ 1,150 General Expense $ 3,450 Accumulated Dep. - Furniture $ 4,600 c) 31 Unearned Sales Revenue $ 4,420 Sales Revenue $ 4,420 d) 31 General Expense $ 1,100 Salary Payable $ 1,100 e) 31 Cost of Goods Sold $ 1,540 Inventory $ 1,540 Post the adjusting and closing entries Journal Date Accounts and Explanations Post Ref. Debit Credit 2012 Closing Entries Jan. 31 Sales Revenue $ 184,350 Sales Discounts $ 7,100 Sales Returns and Allowances $ 8,080 Income Summary $ 169, Income Summary $ 144,800 Cost of Goods Sold $ 103,440 Selling Expenses $ 24,180 General Expense $ 17, Income Summary $ 24,370 Tarsus, Capital $ 24, Tarsus, Capital $ 9,100 Tarsus, Drawing $ 9,100

Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req. 3 (financial statements) St. Paul Technology Income Statement Month Ended January 31, 2012 Revenue: Sales revenue 4,350 Less: Sales returns and allowances ,080 Sales discounts 7,100 15,180 Net sales revenue 9,170 Cost of goods sold 103,440 Gross profit ,730 Operating expenses: Selling expense ,180 General expense 17,180 41,360 Net income ,370 St. James Technology Statement of Owner’s Equity Month Ended January 31, 2012 Tarsus, capital, January 1, 2012 2,190 Net income 24,,560 Drawing (9,100) Tarsus, capital, January 31, 2012 7,460 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req.

3 (financial statements) St. Paul Technology Balance Sheet January 31, 2012 ASSETS Current assets: Cash $ 16,260 Accounts receivable 18,930 Inventory 63,460 Supplies 1,180 Total current assets 99,830 Plant assets: Building 8,090 Accumulated depreciation— building (39,,990 Furniture ,800 Accumulated depreciation— furniture (10,,700 Total assets 3,520 LIABILITIES Current liabilities: Accounts payable ,900 Salary payable 1,100 Unearned sales revenue 2,060 Total current liabilities 31,060 Long-term liabilities: Note payable, long-term 85,000 Total liabilities 116,060 OWNER’S EQUITY Tarsus, capital 167,460 Total liabilities and owner’s equity 3,520 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req.

4 (adjusting and closing entries) Journal Entry DATE ACCOUNTS AND EXPLANATIONS POST. REF. DEBIT CREDIT Adjusting Entries 2012 a. Jan 31 Selling expense 700 General expense 700 Supplies 1,400 b. 31 Selling expense 950 General expense 2,850 Accumulated depreciation— building 3,800 b.

31 Selling expense 1,150 General expense 3,450 Accumulated depreciation— furniture 4,600 c. 31 Unearned sales revenue 4,420 Sales revenue 4,420 d. 31 General expense 1,100 Salary payable 1,100 e. 31 Cost of goods sold 1,540 Inventory 1,540 Comprehensive Problem, Chapters 1-5 *Solutions for Requirements 1 and 5 are omitted in this problem Chapter 5 Merchandising Operations (continued) Comprehensive Problem Chs 1-5 Req. 4 (adjusting and closing entries) Journal Entry DATE ACCOUNTS AND EXPLANATIONS POST.

REF. DEBIT CREDIT Closing Entries Jan 31 Sales revenue 184,350 Sales discounts 7,100 Sales returns and allowances 8,080 Income summary 169, Income summary 144,800 Cost of goods sold 103,440 Selling expense 24,180 General expense 17, Income summary (9,170 − 4,,370 Tarsus, capital 24, Tarsus, capital 9,100 Tarsus, drawing 9,100 Completing a Merchandiser's Accounting Cycle The end-of-month trial balance of St. Paul Technology at January 31, 2012, follows: St. Paul Technology Trial Balance January 31, 2012 Account Debit Credit Cash $ 16,260 Accounts Receivable $ 18,930 Inventory $ 65,000 Supplies $ 2,580 Building $ 188,090 Accumulated Depreciation-Building $ 35,300 Furniture $ 44,800 Accumulated Depreciation- Furniture $ 5,500 Accounts Payable $ 27,900 Salary Payable Unearned sales revenue $ 6,480 Notes Payable, Long-Term $ 85,000 Tarsus, Capital $ 152,190 Tarsus, Drawing $ 9,100 Sales Revenue $ 179,930 Sales Discounts $ 7,100 Sales returns and allowances $ 8,080 Cost of Goods Sold $ 101,900 Selling Expense $ 21,380 General Expense $ 9,080 Total $ 492,300 $ 492,300 Additional data at January 31, 2012: A: Supplies consumed during the month ,400.

Half is selling expense, and the other half is general expense. B: Depreciation for the month: Building,