BE4.3 (LO 1), C The following selected accounts appear in the adjusted trial balance columns of...
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BE4.3 (LO 1), C The following selected accounts appear in the adjusted trial balance columns of the worksheet for Goulet Company: Accumulated Depreciation Equipment, Depreciation Expense, Com- mon Stock, Dividends, Service Revenue, Supplies, and Accounts Payable. Indicate the financial state- ment column (income statement Dr., balance sheet Cr., etc.) to which each balance should be extended. List the required steps in the accounting cycle in sequence. Prepare correcting entries. BE4.8 (LO 3), K The steps in the accounting cycle are listed in random order below. List the steps in proper sequence, assuming no worksheet is prepared, by placing numbers 1-9 in the blank spaces. Prepare a trial balance. Journalize the transactions. Journalize and post closing entries. Prepare financial statements. Journalize and post adjusting entries. b. C. d. f. g. h. L Identify worksheet columns for select accounts. Post to ledger accounts. Prepare a post-closing trial balance. Prepare an adjusted trial balance. Analyze business transactions. BE4.9 (LO 3), AP At Creighton Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870. 2. The purchase of store supplies on account for $1,570 was recorded as a debit to Supplies $1,750 and a credit to Accounts Payable $1,750. Complete the worksheet. Excel E4.2 (LO 1), AP The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation--Equip. Notes Payable (due in October 2022) Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable Totals DeSousa Company Worksheet (partial) For the Month Ended April 30, 2022 Adjusted Trial Balance Dr. Cr. 10,000 7,840 2,280 23,050 3,650 10,840 760 671 57 59,148 4,921 5,700 4,920 20,000 7,960 15,590 57 59,148 Income Statement Dr. Cr. Plevin Company ended its fiscal year on July 31, 2022. The company's adjusted trial balance as of the end of its fiscal year is shown as follows. Balance Sheet Cr. Dr. K Plevin Company ended its fiscal year on July 31, 2022. The company's adjusted trial balance as of the end of its fiscal year is shown as follows. Journalize sales transactions. Prepare adjusting entry for inventory Explain the presentation of a multiple step income statement Answer general questions about merchandisers Answer general questions about merchandisers No. 101 112 157 158 201 2018 311 320 332 400 429 711 725 732 Plevin Company Adjusted Trial Balance July 31, 2022 Account Titles Cash Accounts Receivable Equipment Accumulated Depreciation--Equin. Accounts Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Depreciation Expense Salaries and Wages Expense Utilities Expense Debit Credit $ 9,840 8,780 15,900 16,000 $ 7.400 4,220 1,800 20,000 25,200 64,000 6,500 8,000 55,700 14,900 $129,120 $129,120 Instructions a. Prepare the closing entries using page J15. b. Post to the Retained Earnings and No. 350 Income Summary accounts. (Use the three-column form.) e. Prepare a post-closing trial balance at July 31. BE5.4 (LD 3), AP Prepare the journal entries to record the following transactions on Borst Company's books using a perpetual inventory system. a. On March 2, Borst Company sold $800,000 of merchandise on account to McLeena Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000. b. On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $94,000. c. On March 12, Borst Company received the balance due from McLeena Company. BES.6 (LO 4), AP At year-end, the perpetual inventory records of Litwin Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700. Record the necessary adjusting entry. BES.9 (LO 5), C Writing Explain where each of the following items would appear on a multiple-step income statement: gain on disposal of plant assets, cost of goods sold, depreciation expense, and sales returns and allowances. E5.1 (LO 1), C Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. E5.1 (LO 1), C Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. 2. For a merchandiser, sales less operating expenses is called gross profit. 3. For a merchandiser, the primary source of revenue is the sale of inventory. 4. Sales salaries and wages is an example of an operating expense. Journalize perpetual inventory entries. 5. The operating cycle of a merchandiser is the same as that of a service company. 6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained in the Inventory account. Identify items to be included in taking a physical Inventory 7. In a periodic inventory system, the cost of goods sold is determined only at the end of the reporting period. 8. A periodic inventory system provides better control over inventories than a perpetual system. Compute ending inventory using FIFO and LIPO Instructions Identify each statement as true or false. If false, indicate how to correct the statement. E5.3 (LO 2, 3), AP Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co, at a total cost of $1,600, on account, terms n/30, FOB shipping point. Paid freight of $50 on calculators purchased from Dragoo Co. Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. Sold calculators costing $520 for $690 to Fryer Book Store, on account, terms n/30. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. 20 Sold calculators costing $570 for $760 to Heasley Card Shop, on account, terms n/30. Instructions Journalize the September transactions for Office Depot. ES.7 (LO 4), AP Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Utilities Expense $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that mer- chandise inventory on hand is $13,900. 9 10 12 14 Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries. Prepare adjusting and closing entries. BE6.1 (LO 1), C Peete Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. a. Goods shipped on consignment by Peete to another company. b. Goods in transit from a supplier shipped FOB destination. c. Goods sold but being held for customer pickup. d. Goods held on consignment from another company. BE6.3 (LO 2), AP In its first month of operations, McLanie Company made three purchases of merchan- dise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand, compute the cost of the ending Inventory under the (a) FIFO method and (b) LIFO method. McLanie uses a periodic inventory system. BE4.3 (LO 1), C The following selected accounts appear in the adjusted trial balance columns of the worksheet for Goulet Company: Accumulated Depreciation Equipment, Depreciation Expense, Com- mon Stock, Dividends, Service Revenue, Supplies, and Accounts Payable. Indicate the financial state- ment column (income statement Dr., balance sheet Cr., etc.) to which each balance should be extended. List the required steps in the accounting cycle in sequence. Prepare correcting entries. BE4.8 (LO 3), K The steps in the accounting cycle are listed in random order below. List the steps in proper sequence, assuming no worksheet is prepared, by placing numbers 1-9 in the blank spaces. Prepare a trial balance. Journalize the transactions. Journalize and post closing entries. Prepare financial statements. Journalize and post adjusting entries. b. C. d. f. g. h. L Identify worksheet columns for select accounts. Post to ledger accounts. Prepare a post-closing trial balance. Prepare an adjusted trial balance. Analyze business transactions. BE4.9 (LO 3), AP At Creighton Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the correcting entries. 1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870. 2. The purchase of store supplies on account for $1,570 was recorded as a debit to Supplies $1,750 and a credit to Accounts Payable $1,750. Complete the worksheet. Excel E4.2 (LO 1), AP The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation--Equip. Notes Payable (due in October 2022) Accounts Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable Totals DeSousa Company Worksheet (partial) For the Month Ended April 30, 2022 Adjusted Trial Balance Dr. Cr. 10,000 7,840 2,280 23,050 3,650 10,840 760 671 57 59,148 4,921 5,700 4,920 20,000 7,960 15,590 57 59,148 Income Statement Dr. Cr. Plevin Company ended its fiscal year on July 31, 2022. The company's adjusted trial balance as of the end of its fiscal year is shown as follows. Balance Sheet Cr. Dr. K Plevin Company ended its fiscal year on July 31, 2022. The company's adjusted trial balance as of the end of its fiscal year is shown as follows. Journalize sales transactions. Prepare adjusting entry for inventory Explain the presentation of a multiple step income statement Answer general questions about merchandisers Answer general questions about merchandisers No. 101 112 157 158 201 2018 311 320 332 400 429 711 725 732 Plevin Company Adjusted Trial Balance July 31, 2022 Account Titles Cash Accounts Receivable Equipment Accumulated Depreciation--Equin. Accounts Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Depreciation Expense Salaries and Wages Expense Utilities Expense Debit Credit $ 9,840 8,780 15,900 16,000 $ 7.400 4,220 1,800 20,000 25,200 64,000 6,500 8,000 55,700 14,900 $129,120 $129,120 Instructions a. Prepare the closing entries using page J15. b. Post to the Retained Earnings and No. 350 Income Summary accounts. (Use the three-column form.) e. Prepare a post-closing trial balance at July 31. BE5.4 (LD 3), AP Prepare the journal entries to record the following transactions on Borst Company's books using a perpetual inventory system. a. On March 2, Borst Company sold $800,000 of merchandise on account to McLeena Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000. b. On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $94,000. c. On March 12, Borst Company received the balance due from McLeena Company. BES.6 (LO 4), AP At year-end, the perpetual inventory records of Litwin Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $95,700. Record the necessary adjusting entry. BES.9 (LO 5), C Writing Explain where each of the following items would appear on a multiple-step income statement: gain on disposal of plant assets, cost of goods sold, depreciation expense, and sales returns and allowances. E5.1 (LO 1), C Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. E5.1 (LO 1), C Mr. Etemadi has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. 2. For a merchandiser, sales less operating expenses is called gross profit. 3. For a merchandiser, the primary source of revenue is the sale of inventory. 4. Sales salaries and wages is an example of an operating expense. Journalize perpetual inventory entries. 5. The operating cycle of a merchandiser is the same as that of a service company. 6. In a perpetual inventory system, no detailed inventory records of goods on hand are maintained in the Inventory account. Identify items to be included in taking a physical Inventory 7. In a periodic inventory system, the cost of goods sold is determined only at the end of the reporting period. 8. A periodic inventory system provides better control over inventories than a perpetual system. Compute ending inventory using FIFO and LIPO Instructions Identify each statement as true or false. If false, indicate how to correct the statement. E5.3 (LO 2, 3), AP Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co, at a total cost of $1,600, on account, terms n/30, FOB shipping point. Paid freight of $50 on calculators purchased from Dragoo Co. Returned calculators to Dragoo Co. for $66 credit because they did not meet specifications. Sold calculators costing $520 for $690 to Fryer Book Store, on account, terms n/30. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $34. 20 Sold calculators costing $570 for $760 to Heasley Card Shop, on account, terms n/30. Instructions Journalize the September transactions for Office Depot. ES.7 (LO 4), AP Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000, Inventory $15,000, Utilities Expense $29,000, Sales Revenue $115,000, Sales Discounts $1,200, and Sales Returns and Allowances $1,700. A physical count of inventory determines that mer- chandise inventory on hand is $13,900. 9 10 12 14 Instructions a. Prepare the adjusting entry necessary as a result of the physical count. b. Prepare closing entries. Prepare adjusting and closing entries. BE6.1 (LO 1), C Peete Company identifies the following items for possible inclusion in the taking of a physical inventory. Indicate whether each item should be included or excluded from the inventory taking. a. Goods shipped on consignment by Peete to another company. b. Goods in transit from a supplier shipped FOB destination. c. Goods sold but being held for customer pickup. d. Goods held on consignment from another company. BE6.3 (LO 2), AP In its first month of operations, McLanie Company made three purchases of merchan- dise in the following sequence: (1) 300 units at $6, (2) 400 units at $8, and (3) 500 units at $9. Assuming there are 200 units on hand, compute the cost of the ending Inventory under the (a) FIFO method and (b) LIFO method. McLanie uses a periodic inventory system.
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Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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