camerchandising business headquartered in the U.S. and selling primarily to wholesalers. The accounting information system is based upon the principles and rules of U.S. Generally Accepted Accounting Principles (GAAP). Business activity is recorded on an accrual basis. The company employs the perpetual inventory system in accounting for its merchandise inventory. Sales revenue is recorded net of sales discounts. Purchases of inventory are also recorded net of purchases discounts. The company operates using a January through December fiscal year. The balances of the accounts in the general ledger as of November 30 of the current fiscal year are as follows: 110 Cash 33,890 111 Accounts Receivable 192,100 112 Inventory 256,400 113 Estimated Returns Inventory 8,100 114 Supplies 12.900 115 Prepaid Insurance 30,000 120 Land 140,000 121 Equipment 897,100 122 Accumulated Depreciation-- Equip. 229,600 210 Accounts Payable 42,810 211 Customer Refunds Payable 25,200 212 Salaries Payable 0 213 Interest Payable 0 214 Uneamed Rent 33,200 220 Notes payable (final payment due in 4 50,000 years) 310 Common Stock, $1 par 100,000 311 Retained Earnings 499,560 312 Dividends 75,000 313 Income Summary 0 410 Sales 4,279,530 1 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising expense 522 Delivery Expense 523 Rent expense 524 Miscellaneous selling expense 530 Office Salaries Expense 531 Depreciation Expense-Equip. 532 Insurance Expense 533 Supplies Expense 610 Rent revenue 710 Interest Expense 2,150,410 650,600 220,000 36,000 125,000 42,800 357,000 29,600 0 0 0 3,000 There are 100,000 shares of common stock outstanding. During December, the last month of the fiscal year, the following transactions were completed: 710 Interest Expense 3,000 There are 100,000 shares of common stock outstanding. During December, the last month of the fiscal year, the following transactions were completed: Dec 4 Purchased $19,800 of merchandise on account, FOB shipping point, terms 3/10,1/30. 5 Paid transportation costs of $395 on the December 4 purchase. 9 Returned $2,500 of the merchandise purchased on December 4. 11 Sold merchandise on account, $20,240, FOB destination, 2/15,n/45. The cost of the merchandise sold was $12,350. 12 Paid transportation charges of $710 for the merchandise sold on December 11. 13 Paid for the purchase of December 4 less the return and the discount. 15 Received payment from customers on account, $13,910. Amount received is net of discount. 22 Received payment on account for the sale of December 11, less the discount. 23 Purchased supplies on account, n/30 $1,150. 26 Paid amounts owed to creditors on account, $11,080. Amount paid was net of discount. 27 Paid sales salaries, $2,900, and office salaries, $1,700. 28 Sold merchandise for cash, $8,200. The cost of the merchandise sold was $5,130. 29 Paid customer a cash refund of $3,210 for returned merchandise from the sale of Dec. 11. The cost of the returned merchandise was $1,975. 30 Paid rent for store equipment for December, $1,300. 31 Paid cash for a web page advertisement, $2,060. INSTRUCTIONS: ROUND ALL AMOUNTS TO THE NEAREST DOLLAR, AS NECESSARY! 1. Enter the balances of each of the accounts as of November 30 in the appropriate balance column of a T account (use account names and numbers) or a four-column account. [You are creating the General Ledger.) 2. Journalize (using the General Journal) the transactions for December. 3. Post the December journal entries to the General Ledger, computing the year-end balances after all posting is completed. 4. Prepare an Unadjusted Trial Balance as of December 31. 5. Analyze the following adjustment data assembled at the end of December. Use the adjustment data to journalize, then post, the necessary adjusting entries. Merchandise inventory on hand at December 31, per physical count, $250,465. Insurance coverage expired during the year, $20,100. c. Supplies on hand at December 31. $4,820. d. Additional depreciation to be recorded on the equipment for the year, $13,500. Accrued sales salaries $1,800 and accrued office salaries $890 on December 31. f. Accrued interest on the note payable as of December 31, $410. a. b. e. 2 g Uneamed Rent at December 31 is $8,300. h. Company estimates that customers will request an additional $13,015 of refunds related to current year sales and the related merchandise to be costing $6,210 will be returned. 6. Prepare an Adjusted Trial Balance as of December 31. 7. Prepare, in good form, a multiple-step Income Statement, a Retained Earnings Statement, and a classified Balance Sheet at the end of the December 31 fiscal year. Retained earnings as of 11/30 equaled retained earnings as of beginning of the fiscal year (1/1). 8. Journalize and post the necessary closing entries. 9. Prepare a Post-Closing Trial Balance as of December 31. camerchandising business headquartered in the U.S. and selling primarily to wholesalers. The accounting information system is based upon the principles and rules of U.S. Generally Accepted Accounting Principles (GAAP). Business activity is recorded on an accrual basis. The company employs the perpetual inventory system in accounting for its merchandise inventory. Sales revenue is recorded net of sales discounts. Purchases of inventory are also recorded net of purchases discounts. The company operates using a January through December fiscal year. The balances of the accounts in the general ledger as of November 30 of the current fiscal year are as follows: 110 Cash 33,890 111 Accounts Receivable 192,100 112 Inventory 256,400 113 Estimated Returns Inventory 8,100 114 Supplies 12.900 115 Prepaid Insurance 30,000 120 Land 140,000 121 Equipment 897,100 122 Accumulated Depreciation-- Equip. 229,600 210 Accounts Payable 42,810 211 Customer Refunds Payable 25,200 212 Salaries Payable 0 213 Interest Payable 0 214 Uneamed Rent 33,200 220 Notes payable (final payment due in 4 50,000 years) 310 Common Stock, $1 par 100,000 311 Retained Earnings 499,560 312 Dividends 75,000 313 Income Summary 0 410 Sales 4,279,530 1 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising expense 522 Delivery Expense 523 Rent expense 524 Miscellaneous selling expense 530 Office Salaries Expense 531 Depreciation Expense-Equip. 532 Insurance Expense 533 Supplies Expense 610 Rent revenue 710 Interest Expense 2,150,410 650,600 220,000 36,000 125,000 42,800 357,000 29,600 0 0 0 3,000 There are 100,000 shares of common stock outstanding. During December, the last month of the fiscal year, the following transactions were completed: 710 Interest Expense 3,000 There are 100,000 shares of common stock outstanding. During December, the last month of the fiscal year, the following transactions were completed: Dec 4 Purchased $19,800 of merchandise on account, FOB shipping point, terms 3/10,1/30. 5 Paid transportation costs of $395 on the December 4 purchase. 9 Returned $2,500 of the merchandise purchased on December 4. 11 Sold merchandise on account, $20,240, FOB destination, 2/15,n/45. The cost of the merchandise sold was $12,350. 12 Paid transportation charges of $710 for the merchandise sold on December 11. 13 Paid for the purchase of December 4 less the return and the discount. 15 Received payment from customers on account, $13,910. Amount received is net of discount. 22 Received payment on account for the sale of December 11, less the discount. 23 Purchased supplies on account, n/30 $1,150. 26 Paid amounts owed to creditors on account, $11,080. Amount paid was net of discount. 27 Paid sales salaries, $2,900, and office salaries, $1,700. 28 Sold merchandise for cash, $8,200. The cost of the merchandise sold was $5,130. 29 Paid customer a cash refund of $3,210 for returned merchandise from the sale of Dec. 11. The cost of the returned merchandise was $1,975. 30 Paid rent for store equipment for December, $1,300. 31 Paid cash for a web page advertisement, $2,060. INSTRUCTIONS: ROUND ALL AMOUNTS TO THE NEAREST DOLLAR, AS NECESSARY! 1. Enter the balances of each of the accounts as of November 30 in the appropriate balance column of a T account (use account names and numbers) or a four-column account. [You are creating the General Ledger.) 2. Journalize (using the General Journal) the transactions for December. 3. Post the December journal entries to the General Ledger, computing the year-end balances after all posting is completed. 4. Prepare an Unadjusted Trial Balance as of December 31. 5. Analyze the following adjustment data assembled at the end of December. Use the adjustment data to journalize, then post, the necessary adjusting entries. Merchandise inventory on hand at December 31, per physical count, $250,465. Insurance coverage expired during the year, $20,100. c. Supplies on hand at December 31. $4,820. d. Additional depreciation to be recorded on the equipment for the year, $13,500. Accrued sales salaries $1,800 and accrued office salaries $890 on December 31. f. Accrued interest on the note payable as of December 31, $410. a. b. e. 2 g Uneamed Rent at December 31 is $8,300. h. Company estimates that customers will request an additional $13,015 of refunds related to current year sales and the related merchandise to be costing $6,210 will be returned. 6. Prepare an Adjusted Trial Balance as of December 31. 7. Prepare, in good form, a multiple-step Income Statement, a Retained Earnings Statement, and a classified Balance Sheet at the end of the December 31 fiscal year. Retained earnings as of 11/30 equaled retained earnings as of beginning of the fiscal year (1/1). 8. Journalize and post the necessary closing entries. 9. Prepare a Post-Closing Trial Balance as of December 31