I am working on an accounting assignment and am having problems. Firstly, 1.I ne

Question

I am working on an accounting assignment and am having problems. Firstly,

1.I need to journalize these entries and post the closing entries

2. i need to prepare Dalhanis multi-step income statement and statement of owners equity for August 2010

3. i need to prepare the blance sheet at august 31,2010

4. i need to prepare a post-closing trial balance at august 31,2010

DALHANI makes all credit sales on terms 2/10 n/30 and uses the Perpetual Inventory System
Aug 1 Issued check no 682 for august office rent 2,000
Aug 2 Issued chek no 683 to pay salaries of 3,240, which includes salary payable of 930 from july 31. The company does not use reversing entries.
Aug 2* Issued invoice no 503 for sale on account to R.T. Loeb $600 Dalhani's cost of this merchandise was $190.
Aug 3 Purchased inventory on credit terms of 1/15 n/60 from grant ltd $1,400
Aug 4 recieved net amount of cash on account from fullam corp, $4,116 within the discount period.
Aug 4 sold inventory for cash $2,330 (cost $1,104)
Aug 5 received from park-hee inc. merchandise that had been sold earlier for $550 (cost $174). the wrong merchandise had been sent
Aug 5 issued check no 684 to purchase supplies for cash $780
Aug 6 collected interest revenue of $1,100
Aug 7 issued invoice no 504 for sale on account to k.d. skipper inc $2,400 (cost $760)
Aug 8 issued check no 685 to pay fayda corp $2,600 of the amount owed at july 31st. This payment occurred after the end of the discount period
Aug 11 issued check no 686 to pay grant led the net amount owed from august 3.
Aug 12* received cash from r.t. loeb in full settlement of her account from aug 2nd. r.t. loeb notified dalhani that only one quarter of the goods ordered had been received, but agreed to pay now if dalhani held the remaining goods in his warehouse until september.

* dalhani distributors sold inventory on account to r.t. loeb on august 2 and collected in full on august 12th. loeb indicated that the shipment was incomplete and arranged with dalhani that he would ship the goods to loeb in september. at august 31, $450 of unearned sales revenue needs to be recorded and the cost of this merchandise (142) needs to be removed from cost of goods sold and returned to inventory.

Aug 16 issued check no 687 to pay salary expense of $1,240
Aug 19 purchased inventory for cash $850, issuing check no 688
Aug 22 purchased furniture on credit terms of 3/15 n/60 from beaver corporation, $510
Aug 23 sold inventory on account to fullam corp, issuing invoice no 505 for 9,966 (cost 3,152)
Aug 24 received half the july 31st amount receivable from k.d. skipper inc. after the discount period
Aug 25 issued check no 689 to pay utilities $2,432
Aug 26 purchased supplies on credit terms of 2/10 n/30 from fayda corp $180
Aug 30 returned damaged inventory to company from whom dalhani made the cash purchase on august 19th, receiving cash of $850
Aug 30 granted a sales allowance of $176 to k.d. skipper inc.
Aug 31 purchased inventory on credit terms of 1/10 n/30 from suncrest supply ltd $10,330
Aug 31 issued check no 690 to jack west, owner of dalhani for $1,700

Explanation / Answer

1. In the books of Dalhani:

Date Account Titles Debit Credit $ $ Aug 1 Rent Expense 2,000 Cash 2,000 Aug 2 Salaries Expense 2,310 Salary Payable 930 Cash 3,240 Aug 2 Accounts Receivable : R.T. Loeb 600 Sales Revenue 600 Aug 2 Cost of Goods Sold 190 Inventory 190 Aug 3 Inventory 1,400 Accounts Payable : Grant Ltd. 1,400 Aug 4 Cash 4,116 Sales Discounts 84 Accounts Receivable : Fullam Corp. 4,200 Aug 4 Cash 2,330 Sales Revenue 2,330 Aug 4 Cost of Goods Sold 1,104 Inventory 1,104 Aug 5 Sales Returns and Allowances 550 Accounts Receivable: Park Hee 550 Aug 5 Inventory 174 Cost of Goods Sold 174 Aug 5 Supplies 780 Cash 780 Aug 6 Cash 1,100 Interest Revenue 1,100 Aug 7 Accounts Receivable : KD Skipper 2,400 Sales Revenue 2,400 Aug 7 Cost of Goods Sold 760 Inventory 760 Aug 8 Accounts Payable: Fayda Corp. 2,600 Cash 2,600 Aug 11 Accounts Payable: Grant Ltd. 1,386 Inventory 14 Cash 1,400 Aug 12 Cash 588 Sales Discounts 12 Accounts Receivable: R.T Loeb 600 Aug 12 Sales Revenue 450 Unearned Sales Revenue 450 Aug 12 Inventory 142.50 Cost of Goods Sold 142.50 Aug 16 Salary Expense 1,240 Cash 1,240 Aug 19 Inventory 850 Cash 850 Aug 22 Furniture 510 Accounts Payable: Beaver Corporation 510 Aug 23 Accounts Receivable : Fullam Corp 9,966 Sales Revenue 9,966 Aug 23 Cost of Goods Sold 3,152 Inventory 3,152 Aug 24 Cash ??? Accounts Receivable: K.D. Skipper Inc. ??? Aug 25 Utilities Expense 2,432 Cash 2,432 Aug 26 Supplies 180 Accounts Payable: Fayda Corp. 180 Aug 30 Cash 850 Inventory 850 Aug 30 Sales Returns and Allowance 176 Accounts Receivable: K.D. Skipper Inc. 176 Aug 31 Inventory 10,330 Accounts Payable: Suncrest Supply Ltd. 10,330 Aug 31 Jack West, Withdrawals 1,700 Cash 1,700

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.