Can you please Journalize the tranactions and do a T-account of each one used? N
ID: 2559767 • Letter: C
Question
Can you please Journalize the tranactions and do a T-account of each one used?
Note:
On december 11, the transaction is $12,446 (12,700 x 2%) because sales revenue is included at the point of sale net of customer discount and purchases of inventory are recorded at invoive price.
Fall Back Inc. is a merchandising business headquartered in the U.S. and selling primarily to wholesalers. The accounting information system is based upon the principles and rules of U.S. Generally Accepted Accounting Principles (GAAP). Business activity is recorded on an accrual basis. The company employs the perpetual inventory system in accounting for its merchandise inventory. Sales revenue is recorded at the point of sale net of customer discounts Purchases of inventory are recorded at invoice price. Fall Back operates using a January through December fiscal year The balances of the accounts in the general ledger as of November 30 of the current fiscal year are as follows: (Assume all balances are normal balances 65,900 200,200 2,110 1,900 376,400 0 12,100 30,000 110 Cash 111 Accounts Receivable 112 Allowance for bad debts 113 Allowance for sales returns 114 Inventor 115 Estimated Returns Inventory 116 Supplies 117 Prepaid Insurance 121 Investments in Available for sale securities: Noncurrent (net)18,300 131 Land 132 Equipment 133 Accumulated Depreciation- Equip 141 Deferred Tax Asset 211 Accounts Payable 212|Salaries Payable 213Refund liability 214 Deferred Rent Revenue 215 Notes Payable (due in 8 months) 216 Interest Payable 217 Income taxes payable 311 Common Stock, $1 Par 312 Additional paid in capital 313 Retained Earnings 314 Accumulated Other Comprehensive Income/(Loss) 315 Income Summar 316 Dividends 411 Sales 412 Sales returns 511 Cost of Goods Sold 521Sales Salaries Expense 522Advertising Expense 523Delivery Expense 524Depreciation Expense Equip 525Miscellaneous Selling Expense 526 Office Salaries Expense 527Rent Expense 528 Insurance Expense 529Supplies Expense 530 Bad debts expense 531 Income taxes expense 611 Rent Revenue 711 Interest Expense 140,000 997,100 289,600 0 111,300 0 33,200 50,000 0 0 100,000 59,000 600,800 1,200 0 75,000 4,381,190 79,200 2,122,100 650,600 220,000 36,000 29,600 42,800 407,000 125,000 0 0 0 3,000Explanation / Answer
In the books of Fall Back Inc. :
T- Accounts:
Cash:
Accounts Receivable :
Inventory:
Supplies:
Accounts Payable:
Deferred Rent Revenue:
Sales:
Cost of Goods Sold:
Sales Salaries Expense
Office Salaries Expense:
Rent Expense:
Advertising Expense:
Date Account Titles Debit Credit December $ $ 1 Cash 3,000 Deferred Rent Revenue 3,000 3. Inventory 24,500 Accounts Payable 24,500 4. Inventory 475 Cash 475 7 Accounts Payable 4,000 Inventory 4,000 11. Accounts Receivable 12,446 Sales 12,446 Cost of Goods Sold 7,600 Inventory 7,600 12. Delivery Expense 300 Cash 300 13. Accounts Payable 20,500 Cash 20,090 Inventory 410 15. Cash 8,430 Accounts Receivable 8,430 22. Cash 12,446 Accounts Receivable 12,446 23. Supplies 500 Accounts Payable 500 27. Sales Salaries Expense 2,300 Office Salaries Expense 1,400 Cash 3,700 28. Cash 16,500 Sales 16,500 Cost of Goods Sold 11,200 Inventory 11,200 30 Rent Expense 1,000 Cash 1,000 31 Advertising Expense 400 Cash 400