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Tree Top Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new year, Tree Top Company decided to carry and sell T-shirts with its logo printed on them. Tree Top Company uses the perpetual inventory system to account for the inventory. During January 2025, Tree Top Company completed these merchandising transactions, and posted the merchandising transactions to the ledger accounts. Merchandising Transactions Jan. 1 Purchased 7 T-shirts at $12 each and paid cash. Jan. 2 Sold 6 T-shirts for $21 each, total cost of $72. Received cash. Purchased 70 T-shirts on account at $14 each. Terms 5/10, n/30. Jan. 3 Jan. 7 Paid the supplier for the T-shirts purchased on January 3, less discount. Jan. 8 Realized 1 T-shirts from the January 1 order were printed wrong and returned them for a cash refund. Jan. 10 Sold 50 T-shirts on account for $21 each, total cost of $700. Terms 4/15, n/45. Jan. 12 Received payment for the T-shirts sold on account on January 10, less discount. Jan. 14 Purchased 110 T-shirts on account at $12 each. Terms 5/15, n/30. Jan. 18 Tree Top Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $120 purchase allowance. Jan. 20 Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount. Jan. 21 Sold 70 T-shirts on account for $21 each, total cost of $777. Terms 2/20, n/30. Jan. 23 Received a payment on account for the T-shirts sold on January 21, less discount. Jan. 25 Purchased 330 T-shirts on account at $14 each. Terms 2/10, n/30, FOB shipping point. Jan. 27 Paid freight associated with the January 25 purchase, $33. Jan. 29 Paid for the January 25 purchase, less discount. Jan. 30 Sold 280 T-shirts on account for $21 each, total cost of $3,634. Terms 1/10, n/30. Jan. 31 Received payment for the T-shirts sold on January 30, less discount. Cash Accounts Payable Sales Revenue Bal. 8,570 5,680 Bal. 0 Bal. Jan. 2 126 84 Jan. 1 Jan. 7 980 980 Jan. 3 126 Jan. 2 Jan. 8 12 931 Jan. 7 Jan. 18 120 1,320 Jan. 14 1,008 Jan. 10 Jan. 12 1,008 1,140 Jan. 20 Jan. 20 1,200 4,620 Jan. 25 1,441 Jan. 21 Jan. 23 1,441 Jan. 31 5,821 33 Jan. 27 4,528 Jan. 29 Jan. 29 4,620 5,821 Jan. 30 5,680 Bal. 8,396 Bal. Bal. 10,262 Utilities Payable Canoe Rental Revenue Accounts Receivable 250 Bal. 0 Bal. Bal. 7,300 Jan. 10 1,008 1,008 Jan. 12 250 Bal. 0 Bal. Jan. 21 1,441 1,441 Jan. 23 Jan. 30 5,821 5,821 Jan. 31 Telephone Payable Cost of Goods Sold Bal. 7,300 330 Bal. Bal. 0 Jan. 2 72 Merchandise Inventory 330 Bal. Jan. 10 700 Bal. 0 Jan. 21 777 Jan. 1 84 72 Jan. 2 Wages Payable Jan. 30 3,634 Jan. 3 980 49 Jan. 7 900 Bal. Bal. 5,183 Jan. 14 1,320 12 Jan. 8 Jan. 25 4,620 700 Jan. 10 Jan. 27 33 120 Jan. 18 900 Bal. Rent Expense Bal. 0 60 Jan. 20 Refunds Payable 777 Jan. 21 0 Bal. Bal. 92 Jan. 29 3,634 Jan. 30 Bal. 1,521 0 Bal. Wages Expense Bal. 0 Bal. Bal. Estimated Returns Inventory Interest Payable 30 Bal. Bal. 30 Bal. Utilities Expense Bal. 0 Unearned Revenue Office Supplies 300 Bal. Bal. 0 Bal. 800 Bal. 800 300 Bal. Bal. Notes Payable Prepaid Rent 8,640 Bal. Bal. Bal. 2,200 Bal. 2,200 Land Bal. 110,000 Bal. 110,000 Telephone Expense 0 8,640 Bal. Supplies Expense Bal. 0 Bal. Bal. Depreciation Expense-Building 0 Building Walker, Capital Bal. 0 Bal. 207,000 333,960 Bal. Bal. 207,000 Depreciation Expense-Canoes 333,960 Bal. Bal. 0 Accumulated Depr.-Building Income Summary Bal. 1,600 Bal. 0 Bal. 1,600 Bal. Interest Expense 0 Bal. Bal. 0 Canoes Bal. 16,320 Bal. 16,320 Accumulated Depr.-Canoes 500 Bal. 500 Bal. Bal. Tree Top Company does not typically prepare adjusting and closing entries each month, but the company is surprised at how popular the shirts are and wishes to know the net income for January and would also like to understand how to prepare the closing entries for a merchandising company. During January 2025, Tree Top Company completed the following non-merchandising transactions: (Click the icon to view the non-merchandising transactions.) Read the requirements. Requirements 1. Journalize and post the January transactions. Omit explanations. Use the ledger provided for posting. 2. Journalize and post the adjusting entries for the month of January. Omit explanations. Denote each adjustment as Adj. Compute each account balance, and denote the balance as Bal. In addition, Tree Top Company provides this data: a. A physical count of the inventory at the end of the month revealed the cost was $1,506. b. The company estimated sales returns will be $105 with a cost of $53. c. Office supplies used, $100. d. The Unearned Revenue has now been earned. e. Interest expense accrued on the notes payable, $30. f. Rent of one month has been used. (On December 1, the company prepaid $3,300 for three months' rent on the warehouse where the company stores the canoes. On December 31, the company recorded one month's worth of rent expense for the month of December in the amount of $1,100.) g. Monthy depreciation on the building amounts to $1,600. h. Monthy depreciation on the canoes amounts to $340. 3. Prepare the month ended January 31, 2025, single step income statement of Tree Top Company. 4. Journalize and post the closing entries. Omit explanations. Denote each closing amount as Clo. and each balance as Bal. After posting all closing entries, prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. 5. Compute the gross profit percentage for January for Tree Top Company. Non-Merchandising Transactions Jan. 2 Collected $4,000 on account. Jan. 15 Paid the utilities and telephone bills from December. (On December 20, the company received bills for the telephone ($330) and utilities ($250). At that time the company recorded a Telephone Payable liability and a Utilities Payable liability, respectively.) Jan. 15 Paid the wages accrued in December. (Wages accrued in December amounted to $900 and was recorded as a Wages Payable liability.) Jan. 18 Rented canoes and received cash, $1,900. Jan. 20 Received bills for utilities ($400) and telephone ($320) which will be paid later. Jan. 23 Paid various accounts payable, $1,000. Jan. 30 Paid employee, $900. Requirement 1. Journalize and post the January transactions. Omit explanations. Use the ledger provided for posting. Begin by journalizing the non-merchandising January transactions. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan. 2: Collected $4,000 on account. Date Accounts Jan. 2 Canoe Rental Revenue Cash Canoe Rental Revenue Debit Credit 4000 4000 Jan. 15: Paid the utilities and telephone bills from December. (On December 20, the company received bills for the telephone ($330) and utilities ($250). At that time the company recorded a Telephone Payable liability and a Utilities Payable liability, respectively. Prepare a single compound journal entry for this transactions.) Date Jan. 15 Accounts Debit Credit 580 Jan. 15: Paid the wages accrued in December. (Wages accrued in December amounted to $900 and was recorded as a Wages Payable liability.) Date Jan. 15 Notes Payable Accounts Jan. 18: Rented canoes and received cash, $1,900. Date Jan. 18 Debit Credit Accounts Debit Credit Jan. 20: Received bills for utilities ($400) and telephone ($320) which will be paid later. (Prepare a single compound journal entry for this transaction.) Date Accounts Debit Credit Jan. 20 Jan. 23: Paid various accounts payable, $1,000. Date Jan. 23 Jan. 30: Paid employee, $900. Date Jan. 30 Accounts Debit Credit Accounts Debit Credit The opening balances of each account (that were determined after recording the January merchandising transactions) have been entered for you. Post the January non-merchandising transactions you recorded above using the dates as posting references. Compute each account balance, and denote the balance as Bal. (For any transactions that occurred on the same date that affect the same account, post to the account in the same order as you prepared the journal entries above. For any accounts with a zero balance after posting the January non-merchandising transactions, select a "Bal." reference and enter a "0" on the normal side of the T-account.) Review the journal entries you prepared above. Cash Bal. 10,262 Accounts Payable Sales Revenue 5,680 Bal. 8,396 Bal. Accounts Receivable Utilities Payable Canoe Rental Revenue Bal. 7,300 250 Bal. 0 Bal. Bal. Merchandise Inventory 1,521 Telephone Payable Cost of Goods Sold 330 Bal. Bal. 5,183 Estimated Returns Inventory Wages Payable Rent Expense Bal. 900 Bal. Bal. 0 Office Supplies Refunds Payable 0 Bal. Bal. Bal. 800 Bal. Prepaid Rent Interest Payable 2,200 30 Bal. Bal. Wages Expense 0 Utilities Expense 0 Land Unearned Revenue Telephone Expense Bal. 110,000 300 Bal. Bal. 0 Building Notes Payable Supplies Expense Bal. 207,000 8,640 Bal. Bal. 0 Accumulated Depr.-Building 1,600 Bal. Bal. Depreciation Expense-Building 0 Canoes Walker, Capital Depreciation Expense-Canoes Bal. 16,320 333,960 Bal. Bal. Accumulated Depr.-Canoes Income Summary Interest Expense 500 Bal. 0 Bal. Bal. 0 Requirement 2. Journalize and post the adjusting entries for the month of January. Omit explanations. Denote each adjustment as Adj. Compute each account balance, and denote the balance as Bal. Begin by journalizing the adjusting entries for the month of January. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) A physical count of the inventory at the end of the month revealed the cost was $1,506. Date Jan. 31 Adj. (a) Accounts Debit Credit (b) The company estimated sales returns will be $105 with a cost of $53. Begin by preparing the entry to journalize the sales portion of the adjustment. Do not record the expense adjustment related to the information. We will do that in the following step. Date Debit Accounts Credit Jan. 31 Adj. (b) Now journalize the expense adjustment related to the estimated sales returns. Date Jan. 31 Adj. (b) (c) Office supplies used, $100. Date Jan. 31 Adj. (c) Accounts Debit Credit Accounts Debit Credit (d) The Unearned Revenue has now been earned. (The Unearned Revenue balance was initially recorded in December as part of fees paid by customers for the future rental of canoes.) Date Jan. 31 Adj. (d) Accounts Debit Credit (e) Interest expense accrued on the notes payable, $30. Date Accounts Debit Credit Jan. 31 Adj. (e) (f) Rent of one month has been used. (On December 1, the company prepaid $3,300 for three months' rent on the warehouse where the company stores the canoes. On December 31, the company recorded one month's worth of rent expense for the month of December in the amount of $1,100.) Date Accounts Debit Credit Jan. 31 Adj. (f) (g) Monthy depreciation on the building amounts to $1,600. Date Jan. 31 Adj. (g) Accounts Debit Credit (h) Monthy depreciation on the canoes amounts to $340. Date Jan. 31 Adj. (h) Accounts Debit Credit Enter the unadjusted balance of each account by selecting a "Bal." reference and entering the amount on first line and on the appropriate side of the T-account. Post the January adjusting entries you recorded above using "Adj." along with the applicable letter as posting references on the second line of the necessary T-accounts. For example, for adjustment (a), select "Adj. (a)" as the appropriate posting reference to post to the accounts. Compute the adjusted balance of each account, and denote the balance as Adj. Bal. on the final line of each T-account. (For accounts with a zero unadjusted and/or adjusted balance, select the "Bal." and/or "Adj. Bal." reference and enter a "0" on the normal size of the T-account.) Cash Accounts Payable Sales Revenue Accounts Receivable Utilities Payable Canoe Rental Revenue Merchandise Inventory Telephone Payable Cost of Goods Sold Estimated Returns Inventory Wages Payable Rent Expense Office Supplies Refunds Payable Wages Expense Prepaid Rent Interest Payable Utilities Expense Land Unearned Revenue Telephone Expense Building Notes Payable Supplies Expense Accumulated Depr.-Building Depreciation Expense-Building Canoes Walker, Capital Depreciation Expense-Canoes Accumulated Depr.-Canoes Income Summary Interest Expense Requirement 3. Prepare the month ended January 31, 2025, single step income statement of Tree Top Company. Tree Top Company Income Statement Month Ended January 31, 2025 Revenues: Total Revenues Expenses: Total Expenses Net Income (Loss) Requirement 4. Journalize and post the closing entries. Omit explanations. Denote each closing amount as Clo. and each balance as Bal. After posting all closing entries, prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. Begin by journalizing the closing entries. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by closing revenues. Date Jan. 31 Clo. (1) Close expenses for the month. Date Jan. 31 Clo. (2) Close Income Summary. Date Jan. 31 Clo. (3) Accounts Debit Credit Accounts Debit Credit Accounts Debit Credit Enter the adjusted balance of each account and select an "Adj. Bal." reference to identify the adjusted balances. Post the closing entries. Use "Clo." and the corresponding number as shown in the journal entry as posting references-"Clo.(1)", "Clo. (2)", etc. Post any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account (including those that were not closed). For any accounts with a zero balance adjusted balance and/or post-closing balance, select the posting reference and enter a "0" on the appropriate side of the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing (the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account. (For any accounts with a zero adjusted and/or post-closing balance, select a posting reference and enter a "0" on the normal side of the T-account.) Cash Accounts Payable Sales Revenue Accounts Receivable Utilities Payable Canoe Rental Revenue Merchandise Inventory Telephone Payable Cost of Goods Sold Estimated Returns Inventory Wages Payable Rent Expense Office Supplies Refunds Payable Wages Expense Prepaid Rent Interest Payable Utilities Expense Land Unearned Revenue Telephone Expense Building Notes Payable Supplies Expense Accumulated Depr.-Building Depreciation Expense-Building Canoes Walker, Capital Depreciation Expense-Canoes Accumulated Depr.-Canoes Income Summary Interest Expense Prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. (If a permanent account has a zero balance, exclude it from the post-closing trial balance.) Tree Top Company Post-Closing Trial Balance January 31, 2025 Account Title Balance Debit Credit Requirement 5. Compute the gross profit percentage for January for Tree Top Company. (Round the gross profit percentage to the nearest tenth of a percent, X.X%.) Gross profit % = % Tree Top Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new year, Tree Top Company decided to carry and sell T-shirts with its logo printed on them. Tree Top Company uses the perpetual inventory system to account for the inventory. During January 2025, Tree Top Company completed these merchandising transactions, and posted the merchandising transactions to the ledger accounts. Merchandising Transactions Jan. 1 Purchased 7 T-shirts at $12 each and paid cash. Jan. 2 Sold 6 T-shirts for $21 each, total cost of $72. Received cash. Purchased 70 T-shirts on account at $14 each. Terms 5/10, n/30. Jan. 3 Jan. 7 Paid the supplier for the T-shirts purchased on January 3, less discount. Jan. 8 Realized 1 T-shirts from the January 1 order were printed wrong and returned them for a cash refund. Jan. 10 Sold 50 T-shirts on account for $21 each, total cost of $700. Terms 4/15, n/45. Jan. 12 Received payment for the T-shirts sold on account on January 10, less discount. Jan. 14 Purchased 110 T-shirts on account at $12 each. Terms 5/15, n/30. Jan. 18 Tree Top Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $120 purchase allowance. Jan. 20 Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount. Jan. 21 Sold 70 T-shirts on account for $21 each, total cost of $777. Terms 2/20, n/30. Jan. 23 Received a payment on account for the T-shirts sold on January 21, less discount. Jan. 25 Purchased 330 T-shirts on account at $14 each. Terms 2/10, n/30, FOB shipping point. Jan. 27 Paid freight associated with the January 25 purchase, $33. Jan. 29 Paid for the January 25 purchase, less discount. Jan. 30 Sold 280 T-shirts on account for $21 each, total cost of $3,634. Terms 1/10, n/30. Jan. 31 Received payment for the T-shirts sold on January 30, less discount. Cash Accounts Payable Sales Revenue Bal. 8,570 5,680 Bal. 0 Bal. Jan. 2 126 84 Jan. 1 Jan. 7 980 980 Jan. 3 126 Jan. 2 Jan. 8 12 931 Jan. 7 Jan. 18 120 1,320 Jan. 14 1,008 Jan. 10 Jan. 12 1,008 1,140 Jan. 20 Jan. 20 1,200 4,620 Jan. 25 1,441 Jan. 21 Jan. 23 1,441 Jan. 31 5,821 33 Jan. 27 4,528 Jan. 29 Jan. 29 4,620 5,821 Jan. 30 5,680 Bal. 8,396 Bal. Bal. 10,262 Utilities Payable Canoe Rental Revenue Accounts Receivable 250 Bal. 0 Bal. Bal. 7,300 Jan. 10 1,008 1,008 Jan. 12 250 Bal. 0 Bal. Jan. 21 1,441 1,441 Jan. 23 Jan. 30 5,821 5,821 Jan. 31 Telephone Payable Cost of Goods Sold Bal. 7,300 330 Bal. Bal. 0 Jan. 2 72 Merchandise Inventory 330 Bal. Jan. 10 700 Bal. 0 Jan. 21 777 Jan. 1 84 72 Jan. 2 Wages Payable Jan. 30 3,634 Jan. 3 980 49 Jan. 7 900 Bal. Bal. 5,183 Jan. 14 1,320 12 Jan. 8 Jan. 25 4,620 700 Jan. 10 Jan. 27 33 120 Jan. 18 900 Bal. Rent Expense Bal. 0 60 Jan. 20 Refunds Payable 777 Jan. 21 0 Bal. Bal. 92 Jan. 29 3,634 Jan. 30 Bal. 1,521 0 Bal. Wages Expense Bal. 0 Bal. Bal. Estimated Returns Inventory Interest Payable 30 Bal. Bal. 30 Bal. Utilities Expense Bal. 0 Unearned Revenue Office Supplies 300 Bal. Bal. 0 Bal. 800 Bal. 800 300 Bal. Bal. Notes Payable Prepaid Rent 8,640 Bal. Bal. Bal. 2,200 Bal. 2,200 Land Bal. 110,000 Bal. 110,000 Telephone Expense 0 8,640 Bal. Supplies Expense Bal. 0 Bal. Bal. Depreciation Expense-Building 0 Building Walker, Capital Bal. 0 Bal. 207,000 333,960 Bal. Bal. 207,000 Depreciation Expense-Canoes 333,960 Bal. Bal. 0 Accumulated Depr.-Building Income Summary Bal. 1,600 Bal. 0 Bal. 1,600 Bal. Interest Expense 0 Bal. Bal. 0 Canoes Bal. 16,320 Bal. 16,320 Accumulated Depr.-Canoes 500 Bal. 500 Bal. Bal. Tree Top Company does not typically prepare adjusting and closing entries each month, but the company is surprised at how popular the shirts are and wishes to know the net income for January and would also like to understand how to prepare the closing entries for a merchandising company. During January 2025, Tree Top Company completed the following non-merchandising transactions: (Click the icon to view the non-merchandising transactions.) Read the requirements. Requirements 1. Journalize and post the January transactions. Omit explanations. Use the ledger provided for posting. 2. Journalize and post the adjusting entries for the month of January. Omit explanations. Denote each adjustment as Adj. Compute each account balance, and denote the balance as Bal. In addition, Tree Top Company provides this data: a. A physical count of the inventory at the end of the month revealed the cost was $1,506. b. The company estimated sales returns will be $105 with a cost of $53. c. Office supplies used, $100. d. The Unearned Revenue has now been earned. e. Interest expense accrued on the notes payable, $30. f. Rent of one month has been used. (On December 1, the company prepaid $3,300 for three months' rent on the warehouse where the company stores the canoes. On December 31, the company recorded one month's worth of rent expense for the month of December in the amount of $1,100.) g. Monthy depreciation on the building amounts to $1,600. h. Monthy depreciation on the canoes amounts to $340. 3. Prepare the month ended January 31, 2025, single step income statement of Tree Top Company. 4. Journalize and post the closing entries. Omit explanations. Denote each closing amount as Clo. and each balance as Bal. After posting all closing entries, prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. 5. Compute the gross profit percentage for January for Tree Top Company. Non-Merchandising Transactions Jan. 2 Collected $4,000 on account. Jan. 15 Paid the utilities and telephone bills from December. (On December 20, the company received bills for the telephone ($330) and utilities ($250). At that time the company recorded a Telephone Payable liability and a Utilities Payable liability, respectively.) Jan. 15 Paid the wages accrued in December. (Wages accrued in December amounted to $900 and was recorded as a Wages Payable liability.) Jan. 18 Rented canoes and received cash, $1,900. Jan. 20 Received bills for utilities ($400) and telephone ($320) which will be paid later. Jan. 23 Paid various accounts payable, $1,000. Jan. 30 Paid employee, $900. Requirement 1. Journalize and post the January transactions. Omit explanations. Use the ledger provided for posting. Begin by journalizing the non-merchandising January transactions. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan. 2: Collected $4,000 on account. Date Accounts Jan. 2 Canoe Rental Revenue Cash Canoe Rental Revenue Debit Credit 4000 4000 Jan. 15: Paid the utilities and telephone bills from December. (On December 20, the company received bills for the telephone ($330) and utilities ($250). At that time the company recorded a Telephone Payable liability and a Utilities Payable liability, respectively. Prepare a single compound journal entry for this transactions.) Date Jan. 15 Accounts Debit Credit 580 Jan. 15: Paid the wages accrued in December. (Wages accrued in December amounted to $900 and was recorded as a Wages Payable liability.) Date Jan. 15 Notes Payable Accounts Jan. 18: Rented canoes and received cash, $1,900. Date Jan. 18 Debit Credit Accounts Debit Credit Jan. 20: Received bills for utilities ($400) and telephone ($320) which will be paid later. (Prepare a single compound journal entry for this transaction.) Date Accounts Debit Credit Jan. 20 Jan. 23: Paid various accounts payable, $1,000. Date Jan. 23 Jan. 30: Paid employee, $900. Date Jan. 30 Accounts Debit Credit Accounts Debit Credit The opening balances of each account (that were determined after recording the January merchandising transactions) have been entered for you. Post the January non-merchandising transactions you recorded above using the dates as posting references. Compute each account balance, and denote the balance as Bal. (For any transactions that occurred on the same date that affect the same account, post to the account in the same order as you prepared the journal entries above. For any accounts with a zero balance after posting the January non-merchandising transactions, select a "Bal." reference and enter a "0" on the normal side of the T-account.) Review the journal entries you prepared above. Cash Bal. 10,262 Accounts Payable Sales Revenue 5,680 Bal. 8,396 Bal. Accounts Receivable Utilities Payable Canoe Rental Revenue Bal. 7,300 250 Bal. 0 Bal. Bal. Merchandise Inventory 1,521 Telephone Payable Cost of Goods Sold 330 Bal. Bal. 5,183 Estimated Returns Inventory Wages Payable Rent Expense Bal. 900 Bal. Bal. 0 Office Supplies Refunds Payable 0 Bal. Bal. Bal. 800 Bal. Prepaid Rent Interest Payable 2,200 30 Bal. Bal. Wages Expense 0 Utilities Expense 0 Land Unearned Revenue Telephone Expense Bal. 110,000 300 Bal. Bal. 0 Building Notes Payable Supplies Expense Bal. 207,000 8,640 Bal. Bal. 0 Accumulated Depr.-Building 1,600 Bal. Bal. Depreciation Expense-Building 0 Canoes Walker, Capital Depreciation Expense-Canoes Bal. 16,320 333,960 Bal. Bal. Accumulated Depr.-Canoes Income Summary Interest Expense 500 Bal. 0 Bal. Bal. 0 Requirement 2. Journalize and post the adjusting entries for the month of January. Omit explanations. Denote each adjustment as Adj. Compute each account balance, and denote the balance as Bal. Begin by journalizing the adjusting entries for the month of January. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) (a) A physical count of the inventory at the end of the month revealed the cost was $1,506. Date Jan. 31 Adj. (a) Accounts Debit Credit (b) The company estimated sales returns will be $105 with a cost of $53. Begin by preparing the entry to journalize the sales portion of the adjustment. Do not record the expense adjustment related to the information. We will do that in the following step. Date Debit Accounts Credit Jan. 31 Adj. (b) Now journalize the expense adjustment related to the estimated sales returns. Date Jan. 31 Adj. (b) (c) Office supplies used, $100. Date Jan. 31 Adj. (c) Accounts Debit Credit Accounts Debit Credit (d) The Unearned Revenue has now been earned. (The Unearned Revenue balance was initially recorded in December as part of fees paid by customers for the future rental of canoes.) Date Jan. 31 Adj. (d) Accounts Debit Credit (e) Interest expense accrued on the notes payable, $30. Date Accounts Debit Credit Jan. 31 Adj. (e) (f) Rent of one month has been used. (On December 1, the company prepaid $3,300 for three months' rent on the warehouse where the company stores the canoes. On December 31, the company recorded one month's worth of rent expense for the month of December in the amount of $1,100.) Date Accounts Debit Credit Jan. 31 Adj. (f) (g) Monthy depreciation on the building amounts to $1,600. Date Jan. 31 Adj. (g) Accounts Debit Credit (h) Monthy depreciation on the canoes amounts to $340. Date Jan. 31 Adj. (h) Accounts Debit Credit Enter the unadjusted balance of each account by selecting a "Bal." reference and entering the amount on first line and on the appropriate side of the T-account. Post the January adjusting entries you recorded above using "Adj." along with the applicable letter as posting references on the second line of the necessary T-accounts. For example, for adjustment (a), select "Adj. (a)" as the appropriate posting reference to post to the accounts. Compute the adjusted balance of each account, and denote the balance as Adj. Bal. on the final line of each T-account. (For accounts with a zero unadjusted and/or adjusted balance, select the "Bal." and/or "Adj. Bal." reference and enter a "0" on the normal size of the T-account.) Cash Accounts Payable Sales Revenue Accounts Receivable Utilities Payable Canoe Rental Revenue Merchandise Inventory Telephone Payable Cost of Goods Sold Estimated Returns Inventory Wages Payable Rent Expense Office Supplies Refunds Payable Wages Expense Prepaid Rent Interest Payable Utilities Expense Land Unearned Revenue Telephone Expense Building Notes Payable Supplies Expense Accumulated Depr.-Building Depreciation Expense-Building Canoes Walker, Capital Depreciation Expense-Canoes Accumulated Depr.-Canoes Income Summary Interest Expense Requirement 3. Prepare the month ended January 31, 2025, single step income statement of Tree Top Company. Tree Top Company Income Statement Month Ended January 31, 2025 Revenues: Total Revenues Expenses: Total Expenses Net Income (Loss) Requirement 4. Journalize and post the closing entries. Omit explanations. Denote each closing amount as Clo. and each balance as Bal. After posting all closing entries, prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. Begin by journalizing the closing entries. Omit explanations. (Record debits first, then credits. Exclude explanations from any journal entries.) Start by closing revenues. Date Jan. 31 Clo. (1) Close expenses for the month. Date Jan. 31 Clo. (2) Close Income Summary. Date Jan. 31 Clo. (3) Accounts Debit Credit Accounts Debit Credit Accounts Debit Credit Enter the adjusted balance of each account and select an "Adj. Bal." reference to identify the adjusted balances. Post the closing entries. Use "Clo." and the corresponding number as shown in the journal entry as posting references-"Clo.(1)", "Clo. (2)", etc. Post any closing entries to the accounts and then calculate the post-closing balance ("Bal.") of each account (including those that were not closed). For any accounts with a zero balance adjusted balance and/or post-closing balance, select the posting reference and enter a "0" on the appropriate side of the account. Post the entry to close Income Summary account on the same line as you entered the balance prior to closing (the second line) and then show the post-closing balance ("Bal.") on the last (third) line of the account. (For any accounts with a zero adjusted and/or post-closing balance, select a posting reference and enter a "0" on the normal side of the T-account.) Cash Accounts Payable Sales Revenue Accounts Receivable Utilities Payable Canoe Rental Revenue Merchandise Inventory Telephone Payable Cost of Goods Sold Estimated Returns Inventory Wages Payable Rent Expense Office Supplies Refunds Payable Wages Expense Prepaid Rent Interest Payable Utilities Expense Land Unearned Revenue Telephone Expense Building Notes Payable Supplies Expense Accumulated Depr.-Building Depreciation Expense-Building Canoes Walker, Capital Depreciation Expense-Canoes Accumulated Depr.-Canoes Income Summary Interest Expense Prove the equality of debits and credits in the ledger by preparing a post-closing trial balance. (If a permanent account has a zero balance, exclude it from the post-closing trial balance.) Tree Top Company Post-Closing Trial Balance January 31, 2025 Account Title Balance Debit Credit Requirement 5. Compute the gross profit percentage for January for Tree Top Company. (Round the gross profit percentage to the nearest tenth of a percent, X.X%.) Gross profit % = %
Expert Answer:
Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
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A 2 0 - year bond matures for its par value of $ 1 0 , 0 0 0 . The coupon payable semi - annually is $ 4 0 0 . Calculate the price of the bond at a 6 % yield rate convertible semi - annually.
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Explore onefinancial market and the types of transactions supported by it in the United Statesand global economies. Determine how valuable these transactions are to the United States and the global...
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Describe legal standards associated with the use of force by law enforcement officers and explain the patterns of deadly force and how to respond to citizen concerns of incidents presented by popular...
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You are submitting an application to a professional conference on data-driven decision-making. The application has two parts: Providing information to the conference organizers. Creating a...
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Consider the following proposed robot wrist. Note that the wrist output link is the inner race of a ball bearing, which together with the outer race link forms a revolute joint. There is a universal...
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Following is the Questionnaire; you need to answer the following questions: 1-Trent confessed that the expansion would probably force him to give some additional responsibilities to Max. But that...
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Prove that the mean heat capacities C P H and C P S are inherently positive, whether T > T 0 or T < T 0 . Explain why they are well defined for T = T 0 .
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The treatment of outflows on account of dividend and interest is highly debatable as to their activity classification. Give a serious thought to the issue and express your opinion about the best...
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Reliance Industries Ltd. is the biggest private sector company in India. The following fact sheet about the company and its peer group, as extracted from Capitaline Plus database is reproduced in the...
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Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares, and no warrants are exercised. Data from problem 18 a. What is the amount of cash per share...
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