jackson sales company

Project Description:

the following trial balance is for jackson sales company, a home improvement retailer, at january 1, 2012:

debit credit
cash $49,950
accounts receivable 14,000
allowance for doubtful accounts $2,600
merchandise inventory 20,200
land 50,000
buildings 81,000
accumulated depreciation – buildings 37,500
equipment 45,000
accumulated depreciation – equipment 18,000
accounts payable 3,750
notes payable 38,500
common stock, $10 par 40,000
retained earnings 119,800
$260,150 $260,150


part 1—transactions –

instructions: journalize the appropriate entries for the following transactions for the period january 1, 2012 to december 31, 2012. the company uses a perpetual inventory system and fifo cost method. beginning inventory on january 1 consisted of 1,000 units at $20.20 per unit.


february 1 paid $3,750 accounts payable balance due to a supplier.
march 15 received $2,500 partial payment on a $5,000 accounts receivable balance. wrote off the rest of the account as uncollectible.
april 1
april 15 purchased on account 2,500 units merchandise for resale at $21.50 per unit, with 2/10, n/30 terms.
paid the invoice for april 1 purchase
october 10 sold 700 units of merchandise for a cash price of $40/unit.
november 1 borrowed $20,000 at 6% interest for 5 years with annual payments of principal and interest on october 31. used the loan proceeds plus cash to purchase a $25,000 delivery truck.
december 1 bought back 500 shares of outstanding stock, paying $15/share.
december 5 sold 2,400 units of merchandise on account for $41/unit. payment terms on the invoice were 1/10, n/30.
december 7 of the merchandise sold on december 5, 50 units were returned.
december 15 paid $3,000 for rent of a warehouse facility. the payment covers rent for december and january.
december 15 declared a $1/share cash dividend, payable january 14 to shareholders of record on january 3.
december 18 purchased office supplies of $1,500 on account.
december 31 recorded depreciation for the year
buildings have a 30-year life, a $6,000 residual value and use straight-line depreciation
equipment has a 5-year life, no residual value and use double-declining balance depreciation
note: equipment was all purchased january 1, 2011
vehicles have a 5-year life, no residual value and use straight-line depreciation
december 31 the allowance for doubtful accounts balance is estimated as follows:
2% of current balances are estimated as uncollectible
20% of past-due balances are estimated as uncollectible.
december 31 a count of office supplies shows $550 still on hand on december 31.
january 2, 2013 paid salaries of $24,500 for the pay period december 31 through january 4. salaries are earned evenly during the pay period.


part 2 – trial balance

instructions: prepare a trial balance as of december 31, 2012.




instructions: prepare a december 31, 2012 classified balance sheet, classified income statement and statement of cash flows
Skills Required:
Project Stats:

Price Type: Negotiable

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