ACCT 3320. ACCOUNTING CYCLE REVIEW PROBLEM. FALL 2018 Complete all problem work, using EXCEL. You are to work independently, asking questions ONLY to your instructor. You should bring All work to class on December 3, 2018, for an in-class assessment. Also, financial statements (step 7 in instructions below) should be loaded to ASSIGNMENTS folder on D2L (elearning) NO LATER THAN 9 AM on December 3. Autumn Company has the following opening account balances in its general ledger on January 1. All balances are normal balances. Autumn uses all typical accounts used by a merchandising business. Listed below are accounts with balances other than zero Autumn uses the perpetual inventory system, records all sales by the net method, records sales returns and allowances as they occur (does not estimate at time of sale), records purchases by the gross method, and applies the cost method to account for treasury stock Account Title Cash Accounts Receivable Allowance for bad debts Allowance for sales returns Notes Receivable-Short Term Merchandise Inventor Estimated returns invento Office Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Common Stock, $2 par, 25,000 shares authorized Retained earnings Accumulated Other Comprehensive Income Balance, 1/1 Account # 101 112 113 114 115 120 121 125 130 157 158 201 301 305 306 33,000 9,200 200 1,600 39,000 24,000 750 1,000 2,000 6,450 1,500 27,400 30,000 48,700 6,000 January transactions: January 2 | Issued $100,000, 5-year, debenture 7% bonds with a yield of 5%. Interest payable semiannually on June 30 and December 31. (DO NOT attempt to compute accrued interest; treat January 2 as if it had been an issuance on an interest pavment date 3 Sold merchandise on account, FOB shipping point, 2/10,n/30, $5,900. Cost of merchandise sold, $3,500 4 Purchased 500 shares of Harvest Inc. outstanding common stock at $88 per share. Management intends to hold this security for one year or less. Autumn is not able to exercise significant influence over Harvest 5Purchased merchandise on account, FOB shipping point, n/45, $2,700 7 Collected $1,370 from customers on account; discounts taken as originally recorded 8 Paid freight charges on merchandise purchased on Jan. 5, $180 9 Paid creditors on account, $25,000; no discounts taken 9 Received returned merchandise from sale of Jan. 3; granted customer credit for $300 of billed sales. Cost of merchandise returned was $180 10 Cash sales for January 1 through 10 total $15,500. Cost of merchandise sold, $9,200 11 Sold merchandise on account, FOB shipping point, 2/10,n/30, $2,800. Cost of merchandise sold, $1,700. 12 Paid January rent for the warehouse, $2,000 14 Collected amount due from sale of January 11. Customer took advantage of discount 15 Declared and paid dividends of $0.40 per share on outstanding shares of common stock 16 Purchased merchandise on account, FOB destination, 1/15,n/45, $30,400 17 Paid cash for office supplies, $400 18 Returned $200 of merchandise purchased on Jan. 16 receiving credit from supplier 20 Cash sales for January 11 through 20 total $17,500. Cost of merchandise sold $10,500 20 Collected amount due from sale of January 3, less return of January 9. (Note: discount period expired) 21 Paid one-half of amount due on purchase of January 16 after consideration of Jan. 18 return. Took advantage of early pay discount 22 | Issued 90-day, 3%, $15,100 note payable for remainder of amount owed on Jan. 16 purchase 23 Purchased new equipment by issuing 100 shares of stock at $12 per share and paying $5,000 in cash. In addition, paid installation costs of $500