The following trial balance pertains to Simmons Hardware as of January 1, 2016:
The following events occurred in 2016. Assume that Simmons Hardware uses the periodic inventory system.
1. Purchased land for $16,000 cash.
2. Purchased merchandise on account for $46,000, terms 2/10 n/30.
3. The merchandise purchased by Simmons 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 1/20 n/30.
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.
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, income statement, statement of changes in stock- holders’ equity, balance sheet, and statement of cash flows for 2016.

  • CreatedApril 20, 2015
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