chapter 7 · web view2012/04/27 · purchase returns and allowancesno. 512 date...

COMPREHENSIVE PROBLEM: CHAPTERS 3 TO 7

Note: If the working papers that accompany this text are not used in solving this problem, account numbers may differ from those presented in this solution.

(a)

Sales Journal S1

Date Account Debited Invoice No. Ref.Accounts Receivable Dr.

Sales Revenue Cr.Jan. 3

3111122222525

B. RemyJ. FineR. DravesS. InglesB. RemyR. DravesB. HachinskiJ. Fine

510511512513514515516517

3100 1800190090037008003500610021800

Purchases Journal P1

Date Account Credited Terms Ref.Purchases Dr.

Accounts Payable Cr.Jan. 5

5161616272727

S. YostD. LauxD. MorenoS. KoskoS. YostD. MorenoD. LauxS. Yost

3000 270015000139001500125001200280052600

COMPREHENSIVE PROBLEM (Continued)

Cash Receipts Journal CR1

DateAccountCredited Ref.

CashDr.

AccountsReceivable

Cr.

SalesRevenue

Cr.

OtherAccounts

Cr.Jan. 7

7101313202131

S. InglesB. HachinskiCash SalesB. RemyJ. FineCash SalesS. InglesCash Sales

40002000

1550031001500

17500900

2292067420

40002000

31001500

900

11500

15500

17500

2292055920

Cash Payments Journal CP1

Date Account Debited Ref.

OtherAccounts

Dr.

AccountsPayable

Dr.Supplies

Dr.CashCr.

Jan. 8 9 912151723232831

Freight InS. KoskoD. MorenoRent ExpenseOwner’s DrawingsSuppliesD. MorenoS. KoskoOffice suppliesSalaries and Wages Expense

516

729306125

125

627

180

1000800

7900

9880

900011000

1500013700

48700

400

200

600

1809000

110001000800400

1500013700

2007900

59180


(a) & (e)General Journal G1

Date Account Titles and Explanations Ref. Debit CreditJan. 9 Sales Returns and

Allowances.....................................Accounts Receivable— J. Fine.................................... (Issued credit for merchandise returned)

412

112/

300

300

18 Accounts Payable—S. Kosko..........Purchase Returns and Allowances............................ (Received credit for returned goods)

201/

512

200

200

21 Accounts Payable— R. Mikush........................................

Notes Payable........................... (Issued note for balance due)

201/200

1500015000

Adjusting Entries31 Supplies Expense.............................

Supplies....................................728125

900900

31 Insurance Expense (1/10 X 2,000)..................................

Prepaid Insurance....................722/130/

200200

31 Depreciation Expense (1/12 X 1,500)..................................

Accumulated Depreciation— Equipment.............................

711

158

125

125

31 Interest Expense...............................Interest Payable........................

718230

3030


General Journal G1Date Account Titles and Explanations Ref. Debit CreditJan. 31 Inventory (Jan. 31).............................

Sales Revenue...................................Purchase Returns and Allowances.....................................

Income Summary.....................

120401

512350

15000

200

77720

67565

31 Income Summary..............................Inventory (Jan. 1)......................Sales Returns and Allowances............................Purchases.................................Freight In...................................Rent Expense............................Salaries and Wages Expense..................................Supplies Expense.....................Insurance Expense...................Depreciation Expense..............Interest Expense.......................

350120

412510516729

627728722711718

20000

30052600

1801000

7900100020012530

67565

31 Income Summary..............................Owner’s Capital........................

350301

6756577100

31 Owner’s Capital.................................Owner’s Drawings....................

301306 800

77100

(b) & (e) General Ledger

Cash No. 101Date Explanation Ref. Debit Credit BalanceJan. 1

3131

BalanceCash Dr.Cash Cr.

CR1CP1

6742059180

33750101170

41990


Accounts Receivable No. 112Date Explanation Ref. Debit Credit BalanceJan. 1

31319

BalanceAccounts Receive Dr.Accounts Receive Cr.Return Credit J. Fine

S1

CR1G1

2180011500

300

1300034800233002300023000

Notes Receivable No. 115Date Explanation Ref. Debit Credit BalanceJan. 1 Balance 39000

Inventory No. 120Date Explanation Ref. Debit Credit BalanceJan. 1

3131

BalanceAdj. entry Adj. entry

G1G1

5000200001500015000

Supplies No. 125Date Explanation Ref. Debit Credit BalanceJan. 1

3131

Balance17th & 28th purchase Adj. entry

CP1G1

600900

10001600

700

Prepaid Insurance No. 130Date Explanation Ref. Debit Credit BalanceJan. 1

31BalanceAdj. entry

G1 200

20001800

Equipment No. 157Date Explanation Ref. Debit Credit BalanceJan. 1 Balance 6450


Accumulated Depreciation—Equipment No. 158Date Explanation Ref. Debit Credit BalanceJan. 1

31BalanceAdj. entry

G1 125

15001625

Notes Payable No. 200Date Explanation Ref. Debit Credit BalanceJan. 21 G1 15000 15000

Accounts Payable No. 201Date Explanation Ref. Debit Credit BalanceJan. 1

31311821

BalancePurchases JournalCash Payment Jour.Returned Merch.Issued Note Mikush

P1

CP1G1G1

52600

15000

48900200

3500056100

72007000

22000

Interest Payable No. 230Date Explanation Ref. Debit Credit BalanceJan. 31 Adj. entry G1 30 30

Owner’s Capital No. 301Date Explanation Ref. Debit Credit BalanceJan. 1

3131

BalanceOwners Drawing??????????????

G1G1

8007870077900

?

Owner’s Drawings No. 306Date Explanation Ref. Debit Credit BalanceJan. 15

31Owner’s DrawClose. entry

CP1G1

800800

8000


Income Summary No. 350Date Explanation Ref. Debit Credit BalanceJan. 31

3131

InventorySales Revenue

Close. Entry

120401G1

1500077720

92720

1500092720

0

Sales Revenue No. 401Date Explanation Ref. Debit Credit BalanceJan. 31

3131

Sales JournalCash Receipts Jour.

Close. Entry

S1CR1G1

2180055920

77720

2180077720

0

Sales Returns and Allowances No. 412Date Explanation Ref. Debit Credit BalanceJan. 9

31Issued Credit

Close. entryG1G1

300300

3000

Purchases No. 510Date Explanation Ref. Debit Credit BalanceJan. 31

31Purchases Journal

Close. entryP1G1

5260052600

526000

Purchase Returns and Allowances No. 512Date Explanation Ref. Debit Credit BalanceJan. 18

31Received Credit

Close. entryG1G1

200200

2000

Freight-In No. 516Date Explanation Ref. Debit Credit BalanceJan. 8

31Pay freight

Close. entryCP1G1

180180

1800


Salaries and Wages Expense No. 627Date Explanation Ref. Debit Credit BalanceJan. 31

31Salaries & Wages

Close. entryCP1G1

79007900

79000

Depreciation Expense No. 711Date Explanation Ref. Debit Credit BalanceJan. 31

31Adj. entryClose. entry

G1G1

125125

1250

Interest Expense No. 718Date Explanation Ref. Debit Credit BalanceJan. 31


G1G1

3030

300

Insurance Expense No. 722Date Explanation Ref. Debit Credit BalanceJan. 31


G1G1

200200

2000

Supplies Expense No. 728Date Explanation Ref. Debit Credit BalanceJan. 31


G1G1

900900

9000

Rent Expense No. 729Date Explanation Ref. Debit Credit BalanceJan. 12

31Rent

Close. entryCP1G1

10001000

10000


Accounts Receivable Subsidiary Ledger

R. DravesDate Explanation Ref. Debit Credit BalanceJan. 1

1122

BalanceSold Merchandise toSold Merchandise to

S1S1

1900800

150034004200

J. FineDate Explanation Ref. Debit Credit BalanceJan. 3

91325

Sold Merchandise toIssued Credit backReceived PaymentSold Merchandise to

S1G1

CR1S1

1800

6100

3001500

18001500

06100

B. HachinskiDate Explanation Ref. Debit Credit BalanceJan. 1

725

BalanceReceived PaymentSold Merchandise to

CR1S1 3500

2000750055009000

S. InglesDate Explanation Ref. Debit Credit BalanceJan. 1

71121

BalanceReceived PaymentSold Merchandise toReceived Payment

CR1S1

CR1900

4000

900

40000

9000

B. RemyDate Explanation Ref. Debit Credit BalanceJan. 3

1322

Sold Merchandise toReceived PaymentSold Merchandise to

S1CR1S1

3100

37003100

31000

3700


Accounts Payable Subsidiary Ledger

D. LauxDate Explanation Ref. Debit Credit BalanceJan. 5

27Sold Merchandise toSold Merchandise to

P1P1

27001200

27003900

S. KoskoDate Explanation Ref. Debit Credit BalanceJan. 1

9161823

BalanceReceived PaymentSold Merchandise toReceived PaymentReceived Payment

CP1P1G1

CP1

9000

139009000

20013700

90000

1390013700

0

R. MikushDate Explanation Ref. Debit Credit BalanceJan. 1

21BalanceReceived Payment

G1

1500015000

150000

D. MorenoDate Explanation Ref. Debit Credit BalanceJan. 1

9162327

BalanceReceived PaymentSold Merchandise toReceived PaymentSold Merchandise to

CP1P1

CP1P1

11000

15000

12500

11000

15000

110000

150000

12500

S. YostDate Explanation Ref. Debit Credit BalanceJan. 5

1627

Sold Merchandise toSold Merchandise toSold Merchandise to

P1P1P1

300015002800

300045007300


PACKARD Company Work Sheet For the Month Ended January 31,2012

Adjusted Trial Balance Adjustments Trial Balance Income Statement

Account Titles Dr. Cr. Dr. Cr. Dr. Cr Dr. Cr

Cash 39,990 39,990 39,990

Accounts Receivable 21,000 21,000 21,000

Notes Receivable 39,000 39,000 39,000

Merchandise Inventory 20,000 20,000 20,000 16,000 16,000

Office Supplies 1,600 900 700

Prepaid Insurance 2,000 200 1,800 1,800

Equipment 6,450 6,450 6,450

Accumulated Depreciation - Equipment 1,500 125 1,625

Notes Payable 15,000 15,000

Accounts Payable 25,700 25,700

Interest Payable 30 30

Owner’s Capital 78,700 78,700

Owner’s Drawing 800 800

Sales 72,720 72,720 72,720

Sales Returns and Allowances 300 300 300

Purchases 54,600 54,600 54,600

Purchase Returns and Allowances 200 200 200

Freight-in 180 180 180

Sales Salaries Expense 4,300 4,300 4,300

Office Salaries Expense 2,600 2,600 2,600

Rent Expense 1,000 1,000 1,000

Totals 193,820 193,820

Office Supplies Expense 900 900 900 Insurance Expense 200 200 200 Depreciation Expense 125 125 125 Interest Expense 30 30 30 Totals 1,255 1,255 193,975 193,975 84,235 88,920 125,740 Net Income 4,685

Totals 125,740


(d) PACKARD CO.Income Statement

For the Month Ended January 31, 2012 Sales revenues

Sales revenue.................................. 72,720Less: Sales returns and

Allowances........................... -300 =72,720Net sales revenue........................... 72,420

Cost of goods soldInventory, 1/1/12.............................. 20,000Purchases........................................ +54,600 =74,600Less: Purchase returns and

Allowances.......................... -200 =74,400Net purchases................................. 74,400

Freight in ........................................ +180Cost of goods available for sale.... =74,580 Less: Inventory, 1/31/12................ -16,000 =58,580

Cost of goods sold................... -58,580

Gross profit..................................... $13,840

Operating expensesSalaries and wages expense....................... 6,900Rent expense............................ 1,000 =7,900 Supplies expense..................... 900 =8,800 Insurance expense................... 200 =9,000 Depreciation expense............... 125 =9,125

Total Operating Expenses -9,125 Income from operations....................... $4,715

Other expenses and lossesInterest expense.............................. -30 =4,685

Net income............................................. $4,685


PACKARD CO.Owner’s Equity Statement

For the Month Ended January 31, 2012 Owner’s Capital, January 1, 2012...................... 78,700Add: Net income............................................... +4,685

83,385 Less: Drawings.................................................. -800Owner’s Capital, January 31, 2012.................... $82,585

PACKARD CO.Balance Sheet

January 31, 2012

AssetsCurrent assets

Cash............................................................. 39,990Notes receivable.......................................... 39,000 Accounts receivable................................... 21,000 Inventory...................................................... 16,000Supplies....................................................... 700 Prepaid insurance....................................... +1,800

Total current assets............................ $118,490

Property and equipment assetsEquipment.................................................... 6,450Less: Accumulated depreciation.............. -1,625

Total property and equipment assets............... $4,825

Total Assets ............................................................... $123,315

Liabilities and Owner’s EquityCurrent liabilities

Notes payable.............................................. 15,000

Accounts payable........................................ 25,700

Interest payable........................................... -30 Total liabilities...................................... $40,730

Owner’s equityOwner’s capital............................................ +80,585

Total liabilities and owner’s equity.... $123,315


(f) PACKARD CO.Post-Closing Trial Balance

January 31, 2012

Debit CreditCash..................................................................Notes Receivable.............................................Accounts Receivable......................................Inventory..........................................................Supplies...........................................................Prepaid Insurance...........................................Equipment........................................................Accumulated Depreciation—Equipment.......Notes Payable..................................................Accounts Payable...........................................Interest Payable...............................................Owner’s Capital...............................................

39,99039,00021,00016,000

7001,8006,450

124,940

1,62515,00025,700

30124,940

Accounts Receivable balance............................... 21,000

Subsidiary account balancesR. Draves......................................................... 4,200J. Fine.............................................................. 6,100 B. Hachinski.................................................... 9,000 B. Remy........................................................... 1,700 =$21,000

Accounts Payable balance.................................... 25,700

Subsidiary account balancesD. Laux............................................................ 3,900D. Moreno........................................................ 14,500 S. Yost............................................................. 7,300 =25,700

chapter 7 · web view2012/04/27 · purchase returns and allowancesno. 512 date...

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