CHART OF ACCOUNTS (Not all accounts apply to every problem) Abbreviation 100 Cash Cash 105 Notes Receivable Nrec 110 Accounts Receivable AR 115 Allowance for Doubtful Accounts ADA 120 Inventory Inv 130 Supplies Sup 140 Prepaid Expenses Prep Exp 160 Equipment Equip 165 Accumulated Depreciation, Equipment Acc Dep 200 Accounts Payable AP 201 Notes Payable Npay 205 Interest Payable Int Pay 220 Expenses Payable Exp Pay 240 Unearned Revenue UnRev 250 Long-Term Note Payable LT Note 300 Federal Taxes Payable Fed Tax Pay 310 Common Stock CS 320 Additional Paid-in Capital APIC 330 Retained Earnings RE 340 Dividends Div 400 Income Summary Inc Sum 420 Sales Sales 430 Sales Returns and Allowances SRA 500 Sales Discounts SD 501 Purchases Purchases 502 Purchase Returns and Allowances PRA 503 Purchase Discounts PD 505 Freight-in Freight-in 510 Cost of Goods Sold CGS 520 Rent Expense Rent Exp 530 Supplies Expense Sup Exp 535 Insurance Expense Ins Exp 540 Wage Expense Wage Exp 550 Freight Expense Frg Exp 560 Cleaning Services Expense CS Expense 570 Bad Debts Expense Bad Debt Exp 575 Depreciation Expense, Equipment Dep Exp 580 Interest Expense Int Exp Page 2 of 12 T-Accounts The company is a merchandising company that sells bookcases and uses the PERIODIC inventory accounting method. Post all t-accounts in the proper order showing account name, account number from the Chart of Accounts, beginning and ending balances. Calculate the Cost of Goods sold for the month. Calculate the Gross Profit or Margin Rate. A journal entry worksheet is provided for your convenience. It will NOT be graded. Beginning Balances Cash 1000 Accounts Receivable 1500 Accounts Payable 2000 Beginning Inventory 1754 Ending Inventory 1000 1. 4/1/2011 Customer buys 20 bookcases at $200 each FOB shipping point with terms 1/15 net 45 2. 4/9/2011 Company pays freight of $100 on 4/1/2011 delivery to customer. 3. 4/11/2011 Company buys 15 bookcases at $100 each with terms 3/10 net 30 from vendor. 4. 4/14/2011 Customer pays for delivery of 4/1/2011. 5. 4/15/2011 Vendor gives allowance of 20%. 6. 4/16/2011 Company pays for bookcases delivered on 4/11/2011 from vendor. 7. 4/19/2011 Company pays freight of $150 for 4/11/2011 purchase from vendor. Page 3 of 12 NOT GRADED # Date Account Titles and Descriptions Debit Credit Page 4 of 12 Label accounts using Chart of Accounts Sum all T-Accounts for full points. Place in correct order. Page 5 of 12 Calculate Cost of Goods Sold here. Show all work Calculate Gross Margin or Gross Profit RATE here. Show all work. Page 6 of 12 Page 7 of 12 Adjustments B Assets Liabilities Equity Revenues Expenses Delivered windows totaling $10,500 for customers that had paid in advance deposit. During the month, $2,000 of additional supplies were purchased and booked. At the beginning of the month, the total of supplies inventory was $200. At the end of the month $1,000 was left. Recognized Mays rent. On April 1, the company had paid $4,800 for 4 months rent from April 1 to July 31. Accrued wages earned by employees for the last 4 days of the month. Employees work 5 days per week and the weekly wages total $12,500. Recognized interest owed on a loan payable for $150. Recognized equipment depreciation of $2,000 for the current month. Customer paid $12,000 for doors delivered last month. Provided doors to customers in the amount of $15,000. Customers will pay next month. Page 8 of 12 Financial Statements The following is the adjusted trial balance for ABC Company in scrambled order. Complete the following in good form: Multi-step Income Statement Normal Balance Wage expense 75,600 Utility expense 10,896 Unearned Revenues 24,238 Sales returns and allowances 48,395 Sales Discounts 9,679 Sales 967,900 Retained earnings 28,737 Rent expense 187,455 Prepaid expenses 2,504 Marketing expense 65,467 Loss on sale of equipment 4567 Long term investments 96,290 Long term debt 101,716 Land 24,567 Inventories 13,160 Interest expense 3,456 Intangible Assets 83,456 Equipment 27,990 Dividends 2056 Depreciation expense 89,755 Current portion of long term debt 45,899 Cost of sales 435,555 Common stock 20,000 Cash and cash equivalents 43,909 Buildings 97,349 Additional Paid in Capital 18,543 Accumulated depreciation 45,607 Accrued wages 41,577 Accounts Receivables 6,789 Accounts payable 34,678 Page 9 of 12 Put the Multi-step Income Statement in good form here: Page 10 of 12 Journal Entries Complete the following journal entries including full documentation and account numbers from the Chart of Accounts. You may use the abbreviations noted in the chart of accounts but make it clear which account you are posting to. Journal Entries Complete all adjustments for the month. The Computer Galore is sells computer equipment. Its gross margin is 55%. Its customer is Goodvue College. Its vendor is DCE Wholesaler. Computer Galore has paid six months of rent for $1200 three months ago. a 4/1/2011 Computer Galore purchases equipment $240,000 with useful life of 10 years to be put to use immediately. b 4/2/2011 Goodvue College buys 5 computers at $500.00 each on terms 2/10 net 30 FOB destination c 4/2/2011 Computer Galore pays freight of $375 for delivery on 4/2/2011. d 4/5/2011 Goodvue College returns 1 computer. e 4/7/2011 Computer Galore buys 25 cases at $75.00 each with terms 2/15 net 45 from DCE Wholesaler. f 4/7/2011 Computer Galore pays freight $525 on purchase of 4/7/2011. g 4/9/2011 Computer Galore returns 4 cases to DCE Wholesaler. h 4/10/2011 Goodvue College gets allowance of 5% .on the delivery of 4/2/2011 i 4/11/2011 Goodvue College pays for delivery of 4/2/2011. j 4/22/2011 Computer Galore pays for purchase of 4/7/2011. Complete all adjustments for depreciation and rent. Page 11 of 12 Transaction Date Account Titles and Descriptions Acct # Debit Credit Page 12 of 12 Transaction Date Account Titles and Descriptions Acct # Debit Credit