Question

The following trial balance pertains to Cal’s Grocery as of January 1, 2013:


The following events occurred in 2013. Assume that Cal’s uses the periodic inventory method.
1. Purchased land for $40,000 cash.
2. Purchased merchandise on account for $252,000, terms 1y10 ny45.
3. Paid freight of $2,000 cash on merchandise purchased FOB shipping point.
4. Returned $7,200 of defective merchandise purchased in Event 2.
5. Sold merchandise for $172,000 cash.
6. Sold merchandise on account for $240,000, terms 2y10 ny30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $23,200 cash for selling expenses.
9. Collected $95,000 of the accounts receivable from Event 6 within the discount period.
10. Collected $62,000 of the accounts receivable but not within the discount period.
11. Paid $13,200 of other operating expenses.
12. A physical count indicated that $53,100 of inventory was on hand at the end of the accounting period.

Required
a. Record these transactions in a general journal.
b. Post the transactions to ledger T-accounts.
c. Prepare a schedule of costs of goods sold, an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for2013.


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  • CreatedOctober 26, 2013
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