Question

The following trial balance pertains to Feazell Hardware as of January 1, 2013:


The following events occurred in 2013. Assume that Feazell Hardware uses the periodic inventory system.
1. Purchased land for $16,000 cash.
2. Purchased merchandise on account for $46,000, terms 2y10 ny30.
3. The merchandise purchased by Feazell was shipped FOB shipping point for $460 cash.
4. Returned $4,000 of defective merchandise purchased in Event 2.
5. Sold merchandise for $54,000 cash.
6. Sold merchandise on account for $100,000, terms 1y20 ny30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $2,400 cash for selling expenses.
9. Collected $70,000 of accounts receivable within the discount period.
10. Collected $24,000 of accounts receivable but not within the discount period.
11. Paid $6,400 of other operating expenses.
12. Performed a physical count indicating that $60,000 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 cost of goods sold, an income statement, a statement of changes in stockholders’ equity, a balance sheet, and a statement of cash flows for2013.


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  • CreatedOctober 26, 2013
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