A B BH20 CORPORATION CASE 2 4 4-DecMade cash sales of $3 million. For simplicity

Question

A B BH20 CORPORATION CASE 2 4 4-DecMade cash sales of $3 million. For simplicity of this case, BH20 Corporation uses a PERIODIC inventory system. 7-Dec Purchased $2.4 million of merchandise on account, FOB shipping point. Paid $50,000 related freight-in charges 8 11-Dec Customers returned $600,000 of merchandise for credit to their accounts 10 14-Dec Collected $900,000 of accounts receivable (no cash discount) 12 18-Dec Sold land for $7.8 million, The land originally cost $5 million 13 14 20-Dec Made credit sales of $4 million 15 16 21-Dec BH20 returned $300,000 of merchandise to its merchandise inventory supplier. BH20 received suppliers debit memo 17 1827-Dec Purchased $1.25 million of merchandise for cash 19 20 28-Dec Paid $1.1 million of accounts payable (no cash discount) 21 22 31-Dec Purchased land at a cost of $6 million; Paid $1 million down; signed a 12%, 2-year note for the balance. 23

Explanation / Answer

Unadjusted Trial Balance For the Period Ended 11/30/20x2 Particulars Dr. Amt. Cr. Amt. Cash        8,500.00 Accounts Receivable      15,400.00 Allowance for Doubtful Accounts            685.00 Short Term Investments (AFS Securities)        3,500.00 Fair Value Allowance - AFS Securities            750.00 Inventory        1,500.00 Supplies        1,400.00 Prepiad Insurance                     -   Land      10,000.00 Building      57,000.00 Equipment        7,500.00 Accumulated Dep - Building      17,900.00 Accumulated Dep - Equipment        1,500.00 Accounts Payable      11,100.00 Salaries Payable                     -   Income Tax Payable                     -   Deferred Sales Revenue                     -   Notes Payable @12%        5,000.00 Bank Notes Payable @6%        6,000.00 Capital Stock        9,150.00 Retained Earnings      47,260.00 Dividends        2,000.00 Accumulated other Comprehensive Income (AOCI)            750.00 Sales      88,000.00 Sales Return & Allowances        6,900.00 Purchases      41,400.00 Purchase Return & Allowances        5,800.00 Freight In        4,350.00 Depreciation Expense - Building        1,575.00 Salaries Expenses      16,500.00 Advertisement Expense        8,100.00 Bad Debts Expense            550.00 Insurance Expense        1,200.00 Income Tax Expense        1,200.00 Supplies Expense        2,100.00 Interest Expense        4,520.00 Gain on Sale of Land        2,800.00    195,945.00    195,945.00

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