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Comprehensive Problem 2 Transactions: May 1 Paid rent for May, $ 5 , 0 0 0 . May 2 Sold merchandise on account to Korman
Comprehensive Problem
Transactions:
May Paid rent for May, $
May Sold merchandise on account to Korman Co terms n FOB shipping point, $ The cost of
the goods sold was $
May Purchased merchandise on account from Martin Co terms n FOB shipping point, $
May Paid freight on purchase of May $
May Received $ cash from Halstad Co on account.
May Sold merchandise with a list price of $ to customers who used VISA and who redeemed
$ of pointofsale coupons. The cost of the goods sold was
May Paid for merchandise purchased on May
May Paid advertising expense for last half of May, $
May Received cash from sale of May
May Purchased merchandise for cash, $
May Paid $ to Buttons Co on account.
May Paid Korman Co a cash refund of $ for returned merchandise from sale of May The cost
of the returned merchandise was $
May Sold merchandise on account to Crescent Co terms neom FOB shipping point, $ The
cost of the goods sold was $
May For the convenience of Crescent Co paid freight on sale of May $
May Received $ cash from Gee Co on account.
May Purchased merchandise on account from Osterman Co terms n FOB destination, $
May Returned damaged merchandise purchased on May receiving a credit memo from the seller for $
May Refunded cash on sales made for cash, $ The cost of the merchandise returned was $
May Paid sales salaries of $ and office salaries of $
May Purchased store supplies for cash, $
May Sold merchandise on account to Turner Co terms n FOB shipping point, $ The cost of the
goods sold was $
May Received cash from sale of May plus freight.
May Paid for purchase of May less return of May
Required:
Journalize the transactions for May, the last month of the fiscal year.
Post the journal entries to the general ledger.
Enter the unadjusted trial balance on a column endofperiod spreadsheet work sheet and complete the spreadsheet using
the following adjustment data
At the end of May, the following adjustment data were assembled:
Item Description Amount
a Physcial inventory count on May $
b Insurance expired during the year
c Store supplies on hand on May
d Depreciation for the current year
e Accrued salaries on May :
Sales salaries $
Office salaries
Total
f The adjustment for customer returns and allowances is $ for sales and $ for cost of goods sold.
Journalize the adjusting entries. Post the adjusting entries to the general Ledger
Prepare a multiplestep income statement.
Prepare a statement of stockholders equity. Assume that additional common stock of $ was issued in January Y
Prepare a balance sheet.
Journalize the closing entries. Then post the closing entries to the general ledger
Prepare a postclosing trial balance.
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