There are 100,000 shares of common stock outstanding. During December, the last
ID: 2559521 • Letter: T
Question
There are 100,000 shares of common stock outstanding. During December, the last month of the fiscal year, the following transactions were completed Dec.1 |Received $3,000 in advance payment for December, January, and February rent of warehouse space 3Purchased $24,500 of merchandise on account, FOB shipping point, terms 2/10,n/30 4Paid transportation costs of $475 on the December 3 purchase 7|Returned $4,000 of the merchandise purchased on December 3 11 Sold merchandise on account, $12,700, FOB destination, 2/15,n/30. The cost of the merchandise sold was $7,600 12 Paid transportation charges of $300 for the merchandise sold on December 11 13 Paid for the purchase of December 3 less the return and the discount 15 Received payment from customers on account, S8,430. Amount received is net of discount 22|Received payment on account for the sale of December 11, less the discount 23Purchased supplies on account, n/30 $500 27 Paid sales salaries, $2,300, and office salaries, $1,400 28 Sold merchandise for cash, $16,500. The cost of the merchandise sold was $11,200 30 Paid rent on parking lot for December, $1,000, 31Paid cash for a web page advertisement, $400Explanation / Answer
Notes:
Cash = 65900+3000-475-20090+8261-2300-1400+16500-1000-400 = $67,996
Accounts Receivable = 200200+12700-8430 = $204,470
Inventory = 376400+24500+475-4000-12700-410-11200 = $373,065
Supplies = 12100+500 = $12,600
Accounts Payable = 111300+24500-4000-20500+500 = $111,800
Deferred Rent Revenue = 33200+3000 = $36,200
Sales = 4381190+12700+16500 = $4,410,390
Cost of Goods Sold = 2122100+12700+11200 = $2,146,000
Sales Salaries Expense = 650600+2300 = $652,900
Advertising Expense = 220000+400 = $220,400
Miscellaneous Selling Expense = 42800+169 = $42,969
Office Salaries Expense = 407000+1400 = $408,400
Rent Expense = 125000+1000 = $126,000
Unadjusted Trial Balance Account No. Account Debit Credit 110 Cash $67,996 111 Accounts Receivable $204,470 112 Allowance for Bad Debts $2,110 113 Allowance for sales returns $1,900 114 Inventory $373,065 115 Estimated Returns Inventory 116 Supplies $12,600 117 Prepaid Insurance $30,000 121 Investments in Available for Sale securities: Noncurrent(net) $18,300 131 Land $140,000 132 Equipment $997,100 133 Accumulated Depreciation - Equipment $289,600 141 Deferred Tax Asset 211 Accounts Payable $111,800 212 Salaries Payable 213 Refund liability 214 Deferred Rent Revenue $36,200 215 Notes Payable (due in 8 months) $50,000 216 Interest Payable 217 Income taxes payable 311 Common Stock, $1 Par $100,000 312 Additional paid in capital $59,000 313 Retained Earnings $600,800 314 Accumulated Other Comprehensive Income/(Loss) $1,200 315 Income Summary 316 Dividends $75,000 411 Sales $4,410,390 412 Sales Returns $79,200 511 Cost of Goods Sold $2,146,000 521 Sales Salaries Expense $652,900 522 Advertising Expense $220,400 523 Delivery Expense $36,000 524 Depreciation Expense-Equip. $29,600 525 Miscellaneous Selling Expense $42,969 526 Office Salaries Expense $408,400 527 Rent Expense $126,000 528 Insurance Expense 529 Supplies Expense 530 Bad debts expense 531 Income taxes expense 611 Rent Revenue 711 Interest Expense $3,000 Total $5,663,000 $5,663,000Related Questions
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