Question: Coastal Boards Co is a merchandising business The account balances

Coastal Boards Co. is a merchandising business. The account balances for Coastal Boards Co. as at December 1, 2015 (unless otherwise indicated), are as follows:
During December, the following transactions were completed.
Dec. 1. Paid rent for December, $5,000.
6. Sold merchandise on account to Modesto Co., terms 2/10, n/30, FOB shipping point, $25,000. The cost of the goods sold was $15,000.
7. Received $26,500 cash from Yuba Co. on account, no discount.
14. Received merchandise returned on sale of December 6, $6,000. The cost of the goods returned was $4,500.
15. Paid advertising expense for last half of December, $7,500.
16. Received cash from sale of December 6, less return of December 14 and discount.
19. Paid $18,000 to Bakke Co. on account, no discount.
21. Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination, $20,000.
24. Returned $2,000 of damaged merchandise purchased on December 21, receiving credit from the seller.
28. Paid sales salaries of $22,800 and office salaries of $15,200.
29. Purchased store supplies for cash, $2,400.
31. Paid for purchase of December 21, less return of December 24 and discount.
1. Enter the balances of each of the accounts in the appropriate balance column of a three-column account. Write Balance in the item section, and place a check mark (✓) in the Posting Reference column. Journalize the transactions for December.
2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. You are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
3. Prepare an unadjusted trial balance.
4. At the end of December, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).
5. Optional: Enter the unadjusted trial balance on a 10-column end-of-period spread-sheet (work sheet), and complete the spreadsheet. See Appendix F for how to prepare an end-of-period spreadsheet (work sheet) for a merchandising business.
6. Journalize and post the adjusting entries.
7. Prepare an adjusted trial balance.
8. Prepare a multiple-step income statement, a statement of owner’s equity, and a balance sheet.
9. Prepare and post the closing entries. Indicate closed accounts by inserting a line in the Balance column opposite the closing entry. Insert the new balance in the owner’s capital account.
10. Prepare a post-closing trial balance.

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  • CreatedSeptember 15, 2015
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