Assume it is Monday, May 1, 2020, the first business

Assume it is Monday, May 1, 2020, the first business day of the month, and you have just been hired as the accountant for Alpine Company, which operates with monthly accounting periods. All of the company’s accounting work has been completed through the end of April and its ledgers show April 30 balances. Alpine uses a perpetual system to account for inventory. The terms of all credit sales are 2/10, n/30. During your first month on the job, you record the following transactions on page 2 of each journal.

If the Working Papers that accompany this textbook are not being used, the forms needed to complete this problem are available on Connect.


Required

1. Enter the transactions in the appropriate journals and post when instructed to do so.

2. Prepare a trial balance in the Trial Balance columns of the provided work sheet form and complete the work sheet using the following information.

a. Expired insurance, $553.

b. Ending store supplies inventory, $2,632.

c. Ending office supplies inventory, $504.

d. Estimated depreciation of store equipment, $567.

e. Estimated depreciation of office equipment, $329.

f. Ending merchandise inventory, $191,000.

3. Prepare a May classified, multiple-step income statement, a May statement of changes in equity, and a May 31 classified balance sheet.

4. Prepare and post adjusting and closing entries (omit explanations).

5. Prepare a post-closing trial balance. Also prepare a list of the accounts receivable subledger accounts and a list of the accounts payable subledger accounts.

Issued cheque #3410 to S&M Management Co. in payment of the May rent, $3,700. Use two lines to record the transaction. C

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

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