. Part 2:Note: You must complete part 1 before part 2.After all of the transactions for the year ended December 31, 20Y5, had been posted [indluding the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc.Income statement data:Advertising expense$150,000Cost of merchandise sold3,700,000Delivery expense30,000Depreciation expense-office buildings and equipment30,000Depreciation expense-store buildings and equipment100,000Gain on sale of investments4,980Income from Pinkberry Co. investment76,800Income tax expense142,000Interest expense21,000Interest revenue8,720Miscellaneous administrative expense7,5007 500Miscellaneous selling expense14,000Ofice rent expense50,000Ofrice salaries expense170,000Office supplies expense10,000Sales5,254,000Sales commissions expense185,000Sales salaries expense385,000Store supplies expense21,000Retained earnings and balance sheet data:Accounts payable$194,300Accounts receivable545,000Accumulated depreciation-office buildings and equipment1,580,000Accumulated depreciation-store buildings and equipment4,126,000Allowance for doubtful accounts8,450Available-for-sale investments (at cost)260.130Bonds payable, 5%, due in 10 years500,000Cash246,000Common stock, $20 par (400,000 shares authorized;2,000,000100,000 shares issued, 94,600 outstanding)Dividends:Cash dividends for common stock155,120Cash dividends for preferred stock100,000Goodwill500,000Income tax payable44,000Interest receivable1,125Investment in Pinkberry Co. stock (equity method)1,009,300Trniactmant in raam Tre hande lon tarman n00 Investment in Dream Inc. bonds (long term)90,000Merchandise inventory (December 31, 20Y5), at lower778,000of cost (FIFO) or marketOfice buildings and equipment4,320,000Paid-in capital from sale of treasury stock13,000Excess of issue price over par-common stockExcess of issue price over par-preferred stockPreferred $1 stock, $80 par (30,000 shares authorized;1.600.00020,000 shares issued)Premium on bonds payable19,000Prepaid expenses27,400Retained earnings, January 1, 20Y59,319,725Store buildings and equipment12,560,000Treasury stock (5,400 shares of common stock at cost of178,200$33 per share)Unrealized gain (loss) on available-for-sale investments(6,500)Valuation allowance for available-for-sale investments(6,500)On your own paper, in the working papers, or using a spreadsheet, prepare the following:a. Prepare a multiple-step income statement for the year ended December 31, 20Y5, conduding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.) Save your calculations and enter the requested amounts below.b. Prepare a retained earnings statement for the year ended December 31, 20Y5. Save your calculations and enter the requested amounts below.c Prepare a balance sheet in report form as of December 31, 20Y5. Save your calculations and enter the requested amounts below.Ir required, only use the minus sign to indicate loss before income tax, net loss, or a deficit balance in retained earnings.

All the statement which are prepared in order to find out the company’s profitability, financial and…

Note: You must complete part 1 before part 2. Ater all of the transactions for the year ended December 31, 20Y5, had been posted [induding the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. Income statement data: Advertising expense $150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100.000 Gain on sale of investments 4,980 Income from Pirkberry Co. investment 76,800 Income tax expense 142,000 Interest expense 21,000 Interest revenue 8,720 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Ofice rent expense 50,000 Office salaries e 170.000

Note: You must complete part 1 before part 2. Ater all of the transactions for the year ended December 31, 20Y5, had been posted [induding the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. Income statement data: Advertising expense $150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100.000 Gain on sale of investments 4,980 Income from Pirkberry Co. investment 76,800 Income tax expense 142,000 Interest expense 21,000 Interest revenue 8,720 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Ofice rent expense 50,000 Office salaries e 170.000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter21: Accounting For Accruals, Deferrals, And Reversing Entries

Section: Chapter Questions

Problem 2AP

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The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal year. The data needed for adjustments on January 31 are as follows: ab.Merchandise inventory, January 31, 55,750. c.Insurance expired for the year, 1,285. d.Depreciation for the year, 5,482. e.Accrued wages on January 31, 1,556. f.Supplies used during the year 1,503. Required 1. Prepare a work sheet for the fiscal year ended January 31. Ignore this step if using QuickBooks or general ledger. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. Ignore this step if using CLGL. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. Check Figure Net loss, 1,737
The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows: Here are the data for the adjustments. ab. Merchandise Inventory at December 31, 54,845.00. c. Store supplies inventory (on hand), 488.50. d. Insurance expired, 680. e. Salaries accrued, 692. f. Depreciation of store equipment, 3,760. Required Complete the work sheet after entering the account names and balances onto the work sheet.
The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows: ab. Merchandise Inventory at December 31, 102,765. c. Wages accrued at December 31, 1,834. d. Supplies inventory (on hand) at December 31, 645. e. Depreciation of store equipment, 5,782. f. Depreciation of office equipment, 1,791. g. Insurance expired during the year, 845. h. Rent earned, 2,500. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.
The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066
The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows: ab. Merchandise Inventory at December 31, 104,565. c. Wages accrued at December 31, 934. d. Supplies inventory (on hand) at December 31, 755. e. Depreciation of store equipment, 4,982. f. Depreciation of office equipment, 1,531. g. Insurance expired during the year, 935. h. Rent earned, 2,450. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 16.
Appendix 1 Adjusting entry for gross method The following data were extracted from the accounting records of Sacajawea Mercantile Co. for the year ended June 30, 20Y4: a. Journalize the June 30, 20Y4, adjusting entry for estimated sales discounts. b. How would sales and accounts receivable be reported on the financial statements for the year ending June 30, 20Y4?
The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows. Assume that Markeys Mountain Shop uses the perpetual inventory system. a. Merchandise Inventory at December 31, 140,357. b. Store supplies inventory (on hand) at December 31, 540. c. Depreciation of building, 3,400. d. Depreciation of store equipment, 3,800. e. Salaries accrued at December 31, 1,250. f. Insurance expired during the year, 1,480. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.
Journalize the required adjusting entries for the year ended December 31 for Butler Spa and Pool Accessories. Butler Spa and Pool Accessories uses the periodic inventory system. ab. On December 31, a physical count of inventory was taken. The physical count amounted to 22,624. The Merchandise Inventory account shows a balance of 21,696. c. On July 1 of this year, 2,400 was paid for a one-year insurance policy. d. On November 1 of this year, 420 was paid for three months of advertising. e. As of December 31, the balance of the Unearned Membership Fees account is 15,600. Of this amount, 9,200 has been earned. f. Equipment purchased on May 1 of this year for 8,000 is expected to have a useful life of five years with a trade-in value of 500. All other equipment has been fully depreciated. The straight-line method is used. g. As of December 31, three days wages at 250 per day had accrued. h. As of December 31, the balance of the supplies account is 4,200. A physical inventory of the supplies was taken, with an amount of 1,650 determined to be on hand.
Transaction Analysis Pollys Cards $ Gifts Shop had the following transactions during the year: Pollys purchased inventory on account from a supplier for $8,000. Assume that Pollys uses a periodic inventory system. On May 1, land was purchased for $44,500. A 20% down payment was made, and an 18-month, 8% note was signed for the remainder. Pollys returned $450 worth of inventory purchased in (a), which was found broken when the inventory was received. Pollys paid the balance due on the purchase of inventory. On June 1, Polly signed a one-year, $15,000 note to First State Bank and received $13,800. Pollys sold 200 gift certificates for $25 each for cash. Sales of gift certificates are recorded as a liability. At year-end, 35% of the gift certificates had been redeemed. Sales for the year were $120,000, of which 90% were for cash. State sales tax of 6% applied to all sales must be remitted to the state by January 31. Required Record all necessary journal entries relating to these transactions. Assume that Pollys accounting year ends on December 31. Prepare any necessary adjusting journal entries. What is the total of the current liabilities at the end of the year?
Reversing Entries Thomas Company entered into two transactions involving promissory notes and properly recorded each transaction. 1. On November 1, it purchased land at a cost of 8,000. It made a 2,000 down payment and signed a note payable agreeing to pay the 6,000 balance in 6 months plus interest at an annual rate of 10%. 2. On December 1, it accepted a 4,200, 3-month, 12% (annual interest rate) note receivable from a customer for the sale of merchandise. On December 31, Thomas made the following related adjustments: Required: 1. Assuming that Thomas uses reversing entries, prepare journal entries to record: a. the January 1, reversing entries b. the March 1, 4,326 collection of the note receivable c. the May 1, 6,300 payment of the note payable 2. Assuming instead that Thomas does not use reversing entries, prepare journal entries to record the collection of the note receivable and the payment of the note payable.
END-OF-PERIOD SPREADSHEET, ADJUSTING, CLOSING, AND REVERSING ENTRIES Vickis Fabric Store shows the trial balance on page 601 as of December 31, 20-1. At the end of the year, the following adjustments need to be made: (a, b)Merchandise inventory as of December 31, 31,600. (c, d, e)Vicki estimates that customers will be granted 2,500 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,800. (f)Unused supplies on hand, 350. (g)Insurance expired, 2,400. (h)Depreciation expense for the year on building, 20,000. (i)Depreciation expense for the year on equipment, 4,000. (j)Wages earned but not paid (Wages Payable), 520. (k)Unearned revenue on December 31, 20-1, 1,200. PROBLEM 15-10A CONT. REQUIRED 1. Prepare an end-of-period spreadsheet. 2. Prepare adjusting entries and post adjusting entries to an Income Summary T account. 3. Prepare closing entries and post to a Capital T account. There were no additional investments this year. 4. Prepare a post-closing trial balance. 5. Prepare reversing entry(ies).
The Supplies account has a 1,400 balance. A physical inventory is taken at the end of the fiscal year, and the amount on hand is determined to be 300. What adjusting entry is required to record the supplies used? a. Supplies 300 DR, Cash 300 CR b. Supplies Expense 1,400 DR, Supplies 1,400 CR c. Supplies 1,100 DR, Supplies Expense 1,100 CR d. Supplies Expense 1,100 DR, Supplies 1,100 CR e. None of the above