1. Prepare general journal entries to record the preceding transactions. Cash $3,090 Account Receivable 9,900 Alowance for...
Question:
Cash | $3,090 | |
Account Receivable | 9,900 | |
Alowance for Doubtfull Account | $100 | |
Inventtory | 17,750 | |
Supplies | 1,400 | |
Land | 9,000 | |
Building and Equipment | 42,000 | |
Accumulated Depreciation | 4,200 | |
Accounts Payable | 10,700 | |
Common Stock (2,000 shares) | 20,000 | |
Retained Earning (1/1/2016) | 42,400 | |
Dividend | 2,000 | |
Sales Revenue | 69,700 | |
Costo of Good Sold | 36,860 | |
Salaries Expense | 12,500 | |
Advertising Expense | 8,100 | |
Other Expense | 4,500 | |
$147,100 | $147,100 |
Dec. | Transaction |
4 | Made cash sales of $7,000; the cost of the inventory sold was $3,500. |
7 | Purchased $3,500 of inventory on credit. |
14 | Collected $2,000 of accounts receivable. |
18 | Sold land for $8,000; the land originally cost $5,000. |
20 | Made credit sales of $6,000; the cost of the inventory sold was $3,000. |
21 | Returned $500 of defective inventory to supplier for credit to the Davis Company’s account |
27 | Purchased $2,500 of inventory for cash. |
28 | Paid $1,500 of accounts payable. |
31 | Purchased land at a cost of $7,000; made a $1,000 down payment and signed a 12%, 2-year note for the balance. |
31 | Made cash sales of $5,000; the cost of the inventory sold was $2,000. |
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a year-end trial balance using the following information:
(a) accrued salaries at year-end total $2,000.
(b) for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with no residual value. (Only for one month)
(c) supplies on hand at the end of the year total $500.
(d) bad debts expense for the year totals $1,000; and
(e) the income tax rate is 30%; income taxes are payable in the first quarter of 2017.
4. Prepare the company’s financial statements for 2016.
- Adjusted Trial Balance
- Income Statement
- Retained Earnings
- Balance Sheet
5. Prepare the 2016.
(a) adjusting and
(b) closing entries in the general journal.