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Can you answer only 1,5,8 question in requirements. Completing the Accounting Cycle for a Merchandising Entity (15%) Instructions: Western Wholesale Inc. has a April 30,
Can you answer only 1,5,8 question in requirements.
Completing the Accounting Cycle for a Merchandising Entity (15%) Instructions: Western Wholesale Inc. has a April 30, 2020 year-end. The business reports the following information in its trial balance for the year up to March 31, 2020. WESTERN WHOLESALE INC. Trial Balance March 31 2020 Credit Debit 65,000 355,000 2,763,000 9,500 35,000 210,000 31,500 1,675,000 26,000 650,000 950,000 65,000 Cash Accounts receivable Inventory Supplies Prepaid rent Equipment Accumulated amortization - equipment Accounts payable Unearned revenue Bank loan (all due June 30, 2021) Owners capital Withdrawals Sales Sales returns and allowances Sales discounts Cost of goods sold Advertising expense Freight out Interest expense Supplies expense Rent expense Salaries expense Travel expense Utilities expense Income tax expense 6,707,000 185,000 86,000 4,869,000 75,000 180,000 26,000 65,000 360,000 420,000 56,000 35,000 180,000 10.039,500 $10,039,500 The company uses a perpetual inventory system. Transactions that occurred during the month of April: April. 1 2 5 6 7 8 9 9 12 Received $140,000 on account from a major customer. Paid an invoice totaling $150,000, but taking the full discount, terms 2/10,n/30. Purchased inventory from a supplier, $198,000, terms 2/10, 1/30, FOB destination. Recorded cash sales, $305,000. The cost of the goods sold for these sales was $222,000. Returned inventory to the supplier from the April 5 purchase, $30,000. The appropriate company paid freight for the April 5 purchase, $7,500. Sold inventory for $250,000 on account with terms of 2/10,n/30, FOB destination. The cost of goods sold was $175,000. The appropriate company paid freight for the April 9 sale, $7,500. Placed an order for custom inventory for a local customer totaling $50,000 (but nothing has been received yet). Collected $16,000 as a deposit from the customer. Accepted returned inventory from the sale on April 9, $30,000. The cost of the goods returned to inventory was $18,000. Paid for the inventory purchased on April 5, net of any returns. Paid salaries of $60,000 Received payment of inventory sold on April 9, net of any returns. Recorded cash sales, $355,000. The cost of goods sold for these sales was $245,000. Paid salaries of $60,000 Paid April rent, $20,000. 13 14 16 19 20 27 30 Adjusting journal entries required as at April 30, 2020: a) Accrue utilities, $13,000 b) Accrue salaries, $30,000 c) Accrue interest on bank loan, $14,000 d) Record depreciation on equipment, which has an expected useful life of 15 years. The company uses the straight-line amortization method. e) Prepaid rent expired, $4,000 f) Supplies on hand, $3,150 g) Accrue interest revenue, $7,200 h) Returned the deposit to the local customer that was received on April 12. The company uses a perpetual inventory system. Transactions that occurred during the month of April: April. 1 2 5 6 7 8 9 9 12 Received $140,000 on account from a major customer. Paid an invoice totaling $150,000, but taking the full discount, terms 2/10,n/30. Purchased inventory from a supplier, $198,000, terms 2/10, 1/30, FOB destination. Recorded cash sales, $305,000. The cost of the goods sold for these sales was $222,000. Returned inventory to the supplier from the April 5 purchase, $30,000. The appropriate company paid freight for the April 5 purchase, $7,500. Sold inventory for $250,000 on account with terms of 2/10,n/30, FOB destination. The cost of goods sold was $175,000. The appropriate company paid freight for the April 9 sale, $7,500. Placed an order for custom inventory for a local customer totaling $50,000 (but nothing has been received yet). Collected $16,000 as a deposit from the customer. Accepted returned inventory from the sale on April 9, $30,000. The cost of the goods returned to inventory was $18,000. Paid for the inventory purchased on April 5, net of any returns. Paid salaries of $60,000 Received payment of inventory sold on April 9, net of any returns. Recorded cash sales, $355,000. The cost of goods sold for these sales was $245,000. Paid salaries of $60,000 Paid April rent, $20,000. 13 14 16 19 20 27 30 Adjusting journal entries required as at April 30, 2020: a) Accrue utilities, $13,000 b) Accrue salaries, $30,000 c) Accrue interest on bank loan, $14,000 d) Record depreciation on equipment, which has an expected useful life of 15 years. The company uses the straight-line amortization method. e) Prepaid rent expired, $4,000 f) Supplies on hand, $3,150 g) Accrue interest revenue, $7,200 h) Returned the deposit to the local customer that was received on April 12Step by Step Solution
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