Warehouse\'s chart of accounts includes the following: No. 101 Cash, No. sBkRece
ID: 2478104 • Letter: W
Question
Warehouse's chart of accounts includes the following: No. 101 Cash, No. sBkReceivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales . 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Book st of Goods Sold ions for the month of June for Powell's Book Warehouse using a inventory system. na Hardware Store completed the following merchandising transactions in Journalize, post, and prepare Lator May At the beginning of May, the ledger of Latona showed Cash of $5,000 a partial ncome statement iowner's Capital of $5,000 (LO 2,3,5) Purchased merchandise on account from Gray's Wholesale Supply $4,200, 1terms 2/10, n/30 Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the 2 merchandise sold was $1,300. Received credit from Gray's Wholesale Supply for merchandise returned $300. Received collections in full, less discounts, from customers billed on sales of 9 $2,100 on May 2 1o Paid Gray's Wholesale Supply in full, less discount. 1t Purchased supplies for cash $400. Purchased merchandise for cash $1,400. 12 5 Received refund for poor quality merchandise from sup Received refund for poor quality merchandise from supplier on cash purchase 15 $150 Purchased merchandise from A 17 merchandise from Amland Distributors $1,300, FOB shipping point, terms 2/10, n/30. Paid freight on May 17 purchase $130. 19 Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. 24 Sold nm s Purchased merchandise from Horvath, Inc. $620, FOB destination, terms 25 2/10, n/30 Paid Amland Distributors in full, less discount. Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30. Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $560. 27 31 Latona h Acunts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable Lisona Hardware's chart of accounts includes the following: No. 101 Cash, No. 112 o. 301 Owner's Capital, No. 401 Sales Reverue, No. 412 Sales Returns and Allowances, 301 Owner's Capital, No. 401 Sales Revenue, No. 412 414 Sales Discounts, and No. 505 Coe, of Goods Sold. structions al kumalize the transactions using a perpetsal inventory system. Enter the beginning cash and capitai balances and post the transactions. (Use J1 for the journal reference.) Prepare an income statement through gross profit for the month of May 2014. (c) Gross profit B3A The Deluxe Store is located in midtown Madíson. During the past several years, net Prepare financi otne has been declining because of suburban shopping centers. At the end of the and adjusting tal balances. on November 30, 2014, the following accounts appeared in two of its entries. LO 4, 5) helances iExplanation / Answer
Adjusting Entries S.No. Particulars debit $ credit $ 1 Depreciation 11,000 Accumulated depreciation 11,000 2 Insurance 7,000 Prepaid Insurance 7,000 3 Property Tax Expense 2,500 Property tax payable 2,500 4 Sales Commission Expense 4,500 Sales Commission Payable 4,500 Closing Entries Date Particulars debit $ credit $ Nov, 30 Sales revenue 692,000 Interest Revenue 8,000 Income and Expense Summary 700,000 To Close the revenue account Nov, 30 Income and Expense Summary 670,900 Cost of goods sold 507,000 Fright out 6,500 Depreciation 11,000 Insurance Expense 7,000 Interest Expense 6,400 Property Tax expense 2,500 Rent Expense 15,000 Salaries and Wages Expense 96,000 Sales commission Expense 11,000 Utilities Expense 8,500 To Close the Expense account Nov, 30 Income and Expense Summary 29,100 Owner's Capital 29,100 To close the net income to owner's equity account Nov, 30 Owner's Capital 10,000 Owner's Drawings 10,000 To close the owner's drawings to owner's equity account