May 31, 2016 Debit Credit Account Names Cash Petty Cash Fund Accounts Receivable

Question

May 31, 2016 Debit Credit Account Names Cash Petty Cash Fund Accounts Receivable Merchandise Inventory, 5/1/16 Store Supplies Office Supplies Prepaid Insurance Land Forklift Accumulated Depreciation, Forklift Delivery Truck Accumulated Depreciation, Delivery Truck Accounts Payable Salaries Payable Unearned Sales Revenue Notes Payable (Long-Term) Nicholas Ram, Capital Nicholas Ram, Drawings Sales Revenue Sales Discounts Sales Returns and Allowances Purchases Purchases Discounts Purchases Returns and Allowances Freight-in Salaries Expense Utilities Expense Repair Supplies Expense Postage Expense Rent Expense Depreciation Expense, Delivery Truck Depreciation Expense, Forklift Office Supplies Expense Insurance Expense Cash Short & Over $333,555 4,900 24,000 56,700 10,900 4,200 3,300 38,000 32,100 $600 153,000 1,600 67,500 1,900 15,200 121,500 397,500 4,000 263,300 621 5,000 147,600 3,876 8,800 1,900 35,500 8,300 850 380 15,000 800 600 1,300 300 170

Explanation / Answer

Nicholas Company Income Statement For the Month Ended May 31, 2016 Sales Revenue Sales        263,300.00 Less: Sales Return & Allowances            5,000.00 Less: Sales Discounts                621.00 Net Sales       257,679.00 Less: Cost of Goods Sold Merchandise Inventory, Beginning          56,700.00 Purchases        147,600.00 Less: Purchases Discount            3,876.00 Less: Purchases Returns & Allowances            8,800.00 Net Purchases        134,924.00 Goods Available for Sale        191,624.00 Add: Freight In            1,900.00 Net Cost of Goods Purchased        193,524.00 Less: Merchandise Inventory, Ending          66,000.00 Cost of Goods Sold       127,524.00 Gross Margin       130,155.00 Operating Expenses Salaries Expenses          35,500.00 Utilities Expenses            8,300.00 Repair Supplies Expenses                850.00 Postage Expenses                380.00 Rent Expenses          15,000.00 Depreciation Expense, Delivery Truck                800.00 Depreciation Expense, Fork Lift                600.00 Office Supplies Expenses            1,300.00 Insurance Expenses                300.00 Cash Short & Over                170.00         63,200.00 Net Operating Income         66,955.00 Other Income & Losses Interest Expense            3,300.00 Interest Revenue            4,500.00            1,200.00 Net Income (Loss)         68,155.00 Owners' Equity Statement May 31, 2016 Nicholas Ram, Capital        397,500.00 Net Income (Loss)          68,155.00 Sub-total        465,655.00 Less: Nicholas Ram, Drawings          (4,000.00) Ending Balance        461,655.00 Answer e. Nicholas Company Balance Sheet May 31, 2016 Assets Current Assets Cash        333,555.00 Petty Cash Fund            4,900.00 Accounts Receivable          24,000.00 Inventory          66,000.00 Store Supplies          10,900.00 OfficeSupplies            4,200.00 Prepaid Insurance            3,300.00 Total Current Assets       446,855.00 Property, Plant & Equipment Land          38,000.00 Forklift          32,100.00 Accumulated Depreciation - Forklift              (600.00)          31,500.00 Delivery Truck        153,000.00 Accumulated Depreciation - Delivery Truck          (1,600.00)        151,400.00 Total Property, Plant & Equipment       220,900.00 Total Assets       667,755.00 Liabilities & Owners' Equity Liabilities Current Liabilities Accounts Payable          67,500.00 Salaries Payable            1,900.00 Unearned Sales Revenue          15,200.00 Total Current Liabilities         84,600.00 Long Term Liabilities                         -   Notes Payable       121,500.00 Total Liabilities       206,100.00 Owners' Equity       461,655.00 Total Laibilities & Owners' Equity       667,755.00 Answer 4. Post Closing Trial Balance May 31, 2016 Particulars Dr. Amt. Cr. Amt. Cash        333,555.00 Petty Cash Fund            4,900.00 Accounts Receivable          24,000.00 Inventory          66,000.00 Store Supplies          10,900.00 OfficeSupplies            4,200.00 Prepaid Insurance            3,300.00 Land          38,000.00 Forklift          32,100.00 Accumulated Depreciation - Forklift                600.00 Delivery Truck        153,000.00 Accumulated Depreciation - Delivery Truck            1,600.00 Accounts Payable          67,500.00 Salaries Payable            1,900.00 Unearned Sales Revenue          15,200.00 Notes Payable        121,500.00 Nicholas Ram, Capital        461,655.00 Total        669,955.00        669,955.00 Post Closing Journal Entry Date Particulars Dr. Amt. Cr. Amt. 31-May Income Summary                                            Dr.    278,321.00 To Sales return & Allowances        5,000.00    To Sales Discounts            621.00    To Merchandise Inventory, Beginning      56,700.00    To Purchases    147,600.00    To Freight In        1,900.00    To Salaries Expenses      35,500.00    To Utilities Expenses        8,300.00 To Repair Supplies Expenses            850.00 To Postage Expenses            380.00 To Rent Expenses      15,000.00 To Depreciation Expense, Delivery Truck            800.00 To Depreciation Expense, Fork Lift            600.00 To Office Supplies Expenses        1,300.00 To Insurance Expenses            300.00 To Cash Short & Over            170.00 To Interest Expense        3,300.00 31-May Ending Inventory                                         Dr.      66,000.00 Sales                                                                  Dr.    263,300.00 Purchases Discount                                     Dr.        3,876.00 Purchases Returns & Allowances          Dr.        8,800.00 Interest Revenue                                         Dr.        4,500.00    To Income Summary    346,476.00 31-May Income Summary                                            Dr.      68,155.00    To Nicholas Ram, Capital      68,155.00 31-May Nicholas Ram, Capital                                    Dr.        4,000.00    To Nicholas Ram, Drawing        4,000.00

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