Question
Chapter 5 Whispering Winds Furniture Limited reports the following information for 11 months of the year in its February 28, 2018, trial balance. The companys
Chapter 5
Whispering Winds Furniture Limited reports the following information for 11 months of the year in its February 28, 2018, trial balance. The companys year end is March 31.
WHISPERING WINDS FURNITURE LIMITED Trial Balance February 28, 2018 | |||||
Debit | Credit | ||||
Cash | $68,000 | ||||
Accounts receivable | 366,300 | ||||
Inventory | 2,883,500 | ||||
Supplies | 7,890 | ||||
Prepaid rent | 5,260 | ||||
Equipment | 152,350 | ||||
Accumulated depreciationequipment | $30,470 | ||||
Accounts payable | 1,632,500 | ||||
Unearned revenue | 37,200 | ||||
Bank loan payable | 481,000 | ||||
Common shares | 210,400 | ||||
Retained earnings | 646,290 | ||||
Dividends declared | 52,600 | ||||
Sales | 5,195,300 | ||||
Sales returns and allowances | 112,450 | ||||
Sales discounts | 62,000 | ||||
Cost of goods sold | 3,645,000 | ||||
Advertising expense | 71,100 | ||||
Freight out | 170,450 | ||||
Office expense | 24,800 | ||||
Rent expense | 52,140 | ||||
Salaries expense | 341,850 | ||||
Travel expense | 11,660 | ||||
Utilities expense | 19,150 | ||||
Interest expense | 28,860 | ||||
Income tax expense | 157,800 | ||||
$8,233,160 | $8,233,160 |
Whispering Winds Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system.
Mar. | 1 | Received $135,600 on account from a major customer. | ||
2 | Paid a supplier an amount owing of $189,600, taking the full discount, terms 2/10, n/30. | |||
5 | Purchased merchandise from a supplier, $284,400, terms 2/10, n/30, FOB destination. | |||
6 | Recorded cash sales, $270,750. The cost of goods sold for these sales was $189,600. | |||
7 | Returned scratched merchandise to the supplier from the March 5 purchase, $23,700. | |||
8 | The appropriate company paid freight for the March 5 purchase, $7,300. | |||
9 | Sold $189,600 of merchandise on account, terms 2/10, n/30, FOB destination. The cost of goods sold was $132,720. | |||
9 | The appropriate company paid freight for the March 9 sale, $4,740. | |||
12 | Ordered custom merchandise for a local designer totalling $47,400. Received $11,850 as a deposit. | |||
13 | Accepted returned merchandise from the sale on March 9, $18,960. The cost of the goods returned to inventory was $13,272. | |||
14 | Paid for the merchandise purchased on March 5, net of merchandise returns on March 7. | |||
16 | Paid salaries of $47,150. | |||
19 | Received payment of merchandise sold on March 9, net of merchandise returns on March 13. | |||
20 | Recorded cash sales, $241,550. The cost of goods sold for these sales was $187,700. | |||
27 | Paid salaries of $47,400. | |||
30 | Paid rent, $4,740. |
A/ Record the March transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
B/Set up T accounts, enter the opening balances, and post the transactions recorded in the above part. (Post entries in the order of journal entries presented in the previous part. Round answers to 0 decimal places, e.g. 5,275.)
C/Prepare a trial balance as at March 31. (Round answers to 0 decimal places, e.g. 5,275.)
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