Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

check figures in photo company uses a prepetual system of inventory Sun&Fun Company uses a perpetual inventory system and both an accounts receivable and an

image text in transcribed
image text in transcribed
image text in transcribedcheck figures in photo
company uses a prepetual system of inventory
Sun&Fun Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger, Balances related to both the general ledger and the subsidiary ledger for the company are indicated in the working papers. Below are a series of transactions for Sun&Fun Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 56% of the sales price. Jan. 3 Sell merchandise on account to M. Knast $2,900, invoice no. 825, and to C. Ryder $1,800, invoice no. 826. 5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms 1/30. 7 Receive checks from V. Amold $4,000 and I. Tan $2.000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to K. Xerxes for balance currently due less 2% cash discount, and to T. Caper for balance currently due less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total $15,500. 11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Amold $900, invoice no. 12 Pay rent of $1,000 for January 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of 8800 cash by J. Sandy for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from T. Caper $18,000, terms 1/10, 1/30: K. Xerxes $14,200, terms 2/10, 1/30, and R. Drifter $1,500, terms n/30. 17 Pay S400 cash for office supplies. 18 Return $450 of merchandise to K. Xerxes and receive credit. 20 Summary daily cash sales total $20,100. 21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due 21 Receive payment in full from V. Arnold less cash discount. 22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no 830. 22 Post all entries to the subsidiary ledgers. 23 Send checks to T. Caper and K. Xences in full payment less cash discounts. 25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder 56, 100, invoice no, 832. 27 Purchase merchandise from T. Caper $14,500, terms 1/10, 1/30; N. Sovn $1,200, terms 1/30; and R. Drifter $3,800, terms n/30. 27 Post all entries to the subsidiary ledgers. (continued) Page 2 of 19 28 Pay $200 cash for office supplies. 31 Summary daily cash sales total $21,300. 31 Pay salaries and wages of $8,100. INSTRUCTIONS: (6) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payments joumal, and a two-column general journal. (b) Post the journals to the general ledger. (c) Prepare a trial balance at January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information: 1) Office supplies at January 31 total $850. 2) Insurance coverage expires on October 31, 2020. 3) Annual depreciation on the equipment is $1,500. 4) Interest of SSO has accrued on the note payable. (d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January (e) Prepare and post adjusting and closing entries. () Prepare a post-closing trial balance and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. (s) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers 1) Inventory Turnover 2) Days In Inventory 3) Gross Profit Rate 4) Working Capital Page 3 of 19 Cash Receipts Journal, total Cash DR: Cash Payments Journal, total Cash CR: Net Income: Total Assets Total Post Closing Trial Balance: $68,094 61.740 23,725 134,875 136,500 Name Section Date Sun&FunCo. Sales Journal Account Debited Invoice No. Accounts Receivable Dr. Ref. Sales Revenue Cr. COGS Dr. Inventory Cr Purchases Journal Account Credited Inventory Dr. Acc. PeyC Date Terms Ret Sun&Fun Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger, Balances related to both the general ledger and the subsidiary ledger for the company are indicated in the working papers. Below are a series of transactions for Sun&Fun Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 56% of the sales price. Jan. 3 Sell merchandise on account to M. Knast $2,900, invoice no. 825, and to C. Ryder $1,800, invoice no. 826. 5 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms 1/30. 7 Receive checks from V. Amold $4,000 and I. Tan $2.000 after discount period has lapsed. 8 Pay freight on merchandise purchased $235. 9 Send checks to K. Xerxes for balance currently due less 2% cash discount, and to T. Caper for balance currently due less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total $15,500. 11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Amold $900, invoice no. 12 Pay rent of $1,000 for January 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of 8800 cash by J. Sandy for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from T. Caper $18,000, terms 1/10, 1/30: K. Xerxes $14,200, terms 2/10, 1/30, and R. Drifter $1,500, terms n/30. 17 Pay S400 cash for office supplies. 18 Return $450 of merchandise to K. Xerxes and receive credit. 20 Summary daily cash sales total $20,100. 21 Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due 21 Receive payment in full from V. Arnold less cash discount. 22 Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no 830. 22 Post all entries to the subsidiary ledgers. 23 Send checks to T. Caper and K. Xences in full payment less cash discounts. 25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder 56, 100, invoice no, 832. 27 Purchase merchandise from T. Caper $14,500, terms 1/10, 1/30; N. Sovn $1,200, terms 1/30; and R. Drifter $3,800, terms n/30. 27 Post all entries to the subsidiary ledgers. (continued) Page 2 of 19 28 Pay $200 cash for office supplies. 31 Summary daily cash sales total $21,300. 31 Pay salaries and wages of $8,100. INSTRUCTIONS: (6) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal, a cash payments joumal, and a two-column general journal. (b) Post the journals to the general ledger. (c) Prepare a trial balance at January 31, 2020, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information: 1) Office supplies at January 31 total $850. 2) Insurance coverage expires on October 31, 2020. 3) Annual depreciation on the equipment is $1,500. 4) Interest of SSO has accrued on the note payable. (d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January (e) Prepare and post adjusting and closing entries. () Prepare a post-closing trial balance and determine whether the subsidiary ledgers agree with the control accounts in the general ledger. (s) Calculate the following ratios. Include the written formula in words in addition to your calculations and your final answers 1) Inventory Turnover 2) Days In Inventory 3) Gross Profit Rate 4) Working Capital Page 3 of 19 Cash Receipts Journal, total Cash DR: Cash Payments Journal, total Cash CR: Net Income: Total Assets Total Post Closing Trial Balance: $68,094 61.740 23,725 134,875 136,500 Name Section Date Sun&FunCo. Sales Journal Account Debited Invoice No. Accounts Receivable Dr. Ref. Sales Revenue Cr. COGS Dr. Inventory Cr Purchases Journal Account Credited Inventory Dr. Acc. PeyC Date Terms Ret

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Trends In Financial Decision Making

Authors: Cees Van Dam

1978 Edition

9020706926, 978-9020706925

More Books

Students also viewed these Accounting questions