During May, the last month of the fiscal year, the following transactions were completed: May 1 Paid
Question:
During May, the last month of the fiscal year, the following transactions were completed:
May 1 Paid rent for May, $5,000.
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4 Paid freight on purchase of May 3, $600.
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on the account.
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13 Paid for merchandise purchased on May 3.
15 Paid advertising expense for last half of May, $11,000.
16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
19 Paid $33,450 to Buttons Co. on account.
20 Sold merchandise on account to Crescent Co. $110,000. The cost of the merchandise sold was $70,000.
21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
21 Received $42,900 cash from Gee Co. on account.
21 Purchased merchandise on account from Osterman Co., $88,000.
28 Paid sales salaries of $56,000 and office salaries of $29,000.
29 Purchased store supplies for cash, $2,400.
30 Sold merchandise on account to Turner Co., $78,750. The cost of the merchandise sold was $47,000.
30 Received cash from sale of May 20 plus freight paid on May 21.
31 Paid for purchase of May 21
At the end of May the following adjustment data were assembled.
a. Merchandising Inventory on May 31 $550,000
b. Insurance expired during the year 12,000
c. Store supplies on hand on May 31 4,000
d. Depreciation for the current year 14,000
e. Accrued salaries on May 31:
Sales salaries $7,000
Office salaries 6,600 13,600
Journalize and point out the adjusting entries. Record the adjusting entries of the journal.
Prepare an adjusted trial balance.
Prepare an income statement, a statement of owner's equity, and a balance sheet.
Expert Answer:
Journal Entries May 1 Rent Expense 5000 Cash 5000 3 Accounts Receivable 36000 Merchandise Inventory 36000 4 Cash 600 Freight Expense 600 6 Accounts Re... View the full answer
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
