Record basic transactions, adjusting journal entries, and closing entries 2.Prepare a balance sheet and income statement

Refer to the fiscal year 1999 physical statements of Abercrombie & Fitch Co. Note “fiscal year 1999” refers to the year that began February 1, 1998 and ended on January 30, 1999.

1. Open T accounts for each balance sheet and income statement line item,( i.e. for the permanent accounts: 9 asset T accounts and 9 liability and owners equity T accounts; for the temporary accounts: 5T accounts) Enter the January 31 1998 balance sheet amounts as the opening balance for fiscal 1999 and post the following fiscal 1999 transactions (in thousands of dollars)
2. Inventory costing $481,918 was purchased on account during the year.
3. Store supplies cost in $1000 were purchased on account during the year.
4. Sales of $815,804 were made. Of these $15,804 were on account.
5. The cost of merchandise sold was $465,000.
6. The company collected cash of $13,398 from its customers for sales previously recorded as accounts receivable.
7. Cash of 514,114 was used to pay suppliers for goods, supplies, and property and equipment previously purchased on account.
8. The company collected $23,785 from the Limited co. in satisfaction of amounts owed by the Limited co. to A&F.
9. Cash of $5000 was used to re-pay principle on long-term debt.
10. Property and equipment were required on account (accounts payable ) for $39,987.
11. The company paid $908 for shares of its own common stock. This is known as treasury stock. It is recorded at cost as a debt in the owners equity section of the balance sheet.
12. The following represents a single composite journal entry for all remaining transactions during the year. Record the entry in the appropriate accounts:

Dr.	Other current assets		$400
Dr.	General admin operating costs		$150,652
Dr.	Provision for income taxes		$68,040
Dr.	deferred income taxes		$6,978
Dr.	other assets		$631
Cr.		Cash	$151,254
Cr,		Income taxes payable	$17,736
Cr.		Long Term Liabilities	$3,327
Cr,		Interest income	$3,144
Cr.		Accrued Expenses	$25,054
Cr.		Common Stock	$6
Cr.		Paid in capital	$26,170
		TOTAL	$226,701

Answer rating: 100% (QA)

The following table shows the journal entries passed SNo Ac... View the full answer