Question
1) The adjusted trial balance of J. W. Hatch Company appears below. J. W. HATCH Adjusted Trial Balance December 31, 2022 Debit Credit Cash 12,000
1) The adjusted trial balance of J. W. Hatch Company appears below.
J. W. HATCH
Adjusted Trial Balance
December 31, 2022
Debit Credit
Cash 12,000
Accounts Receivable 25,000
Inventory 35,000
Buildings 140,000
Accumulated Depreciation
Buildings 20,000
Accounts Payable 12,000
Common Stock 100,000
Retained Earnings 44,000
Dividends 30,000
Sales Revenue 310,000
Sales Discounts 6,000
Sales Returns & Allowances 8,000
Cost of Goods Sold 188,000
Operating Expenses 42,000
486,000 486,000
Instructions
Using the information given, prepare the year-end closing entries.
2) Presented below is information for Annie Company for the month of March 2022.
Cost of goods sold $245,000 Rent expense $ 36,000
Freight-out expense 7,000 Sales discounts 8,000
Insurance expense 5,000 Sales returns and allowances 11,000
Salaries and wages expense 63,000 Sales revenue 410,000
Instructions
(a) Prepare a multiple-step income statement.
(b) Compute the gross profit rate.
2) On October 1, Benji's Bicycle Store had an inventory of 20 ten-speed bicycles at a cost of $200 each. During the month of October, the following transactions occurred.
Oct. 4 Purchased 40 bicycles at a cost of $200 each from Monroe Bicycle Company, terms 1/10, n/30.
6 Sold25 bicycles to Team Wisconsinfor $330 each, terms 2/10, n/30.
7 Received credit from Monroe Bicycle Companyfor the return of 2 bicycles.
13 Issued a credit memo to Team Wisconsinfor the return of a defective bicycle.
14 Paid Monroe Bicycle Companyin full, less discount.
Instructions
Prepare the journal entries to record the transactions assuming the company uses a perpetual inventory system.
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