Food Lion, Inc. Beginning Balances for Chart of Accounts Debits Credits Accounts
ID: 2431205 • Letter: F
Question
Food Lion, Inc. Beginning Balances for Chart of Accounts Debits Credits Accounts 6 Cash & Cash Equivalents 70,035.00 127,995.00 881,021.00 73,362.00 1,051,069.00 7 Accounts Receivable 8 Inventories 9 Prepaid Expenses 10 Property, at Cost 11 Accumulated Deprec. $360,000.00 12 Goodwill 13 Current Liabilities 1,783.00 14 Long-term Liabilities 15 Contributed Capital 16 Retained Earnings 498,695.00 244,060.00 237,568.00 864,942 00 17 Net Sales 18 Cost of Goods Sold Selling and 19 Administrative Expense Depreciation and 20 Amoritazion 21 Interest Expense 22 Income Tax Expense 3 TOTAL 2,205.265.00 $2.205,265.00 t1 Sheeta ype here search TOSHIBA
Explanation / Answer
Hey there !!
Well, this is a pretty long question, but don't worry !! we will solve each and every journal entry :)
This question asks you to prepare Income statement and Balance sheet as well. This we will be able to do only after we first pass our Journal entries, then post the same to ledgers and prepare trial balance. Thereafter, we will be able to prepare our financial statements !!
Now let us pass the journal entries ....
I hope, you have also correctly passed all the journal entries ... now you can post them to ledger and prepare trial balance ase well. don''t forget to make adjustment entries in your trial balance.
I hope, After this you will be easily able to prepare the Balance sheet and Income statement.
Do let me know if you face any difficulties. I'll be happy to help :)
All the best :)
Date Accounts and Explanation Debit ($) Credit ($) Purchases A/c Dr 55,00,000 To Accounts Payables Cr 55,00,000 Cash A/c Dr 94,00,000 To Sales Cr 94,00,000 Sales Dr 94,00,000 To COGS Cr 65,00,000 To Gross Profit Cr 29,00,000 Accounts Receivable Dr 5,29,000 To Sales Cr 5,29,000 Sales Dr 5,29,000 To COGS Cr 4,10,000 To Gross Profit Cr 1,19,000 Accounts Payable A/c Dr 61,00,000 To Bank A/c Cr 61,00,000 Employees Wages A/c Dr 12,50,000 To Cash A/c Cr 12,50,000 Bank A/c Dr 2,50,000 To Short Term Note Payable Cr 2,50,000 No entry for report on brand name Bank A/c Dr 5,05,000 To Accounts Receivable Cr 5,05,000 Property, Plant and Equip A/c Dr 2,83,000 To Cash A/c Cr 2,83,000 Bond A/c Dr 83,500 To Bank Cr 83,500 Interest on Bonds Dr 76,600 To Bank Cr 76,600 Long term Liabilities A/c Dr 12,250 To bank A/c Cr 12,250 Cash A/c Dr 3,086 To Stocks A/c Cr 3,086 Dividend A/c Dr 50,000 Dividends payable A/c 50,000 Dividends payable A/c Dr 50,000 To bank a/c Cr 50000