Comprehensive Problem Accounting Cycle with Subsidiary Ledgers

COMPREHENSIVE PROBLEM 2: Accounting Cycle with Subsidiary Ledgers, Part 1 Shop engaged in the for During the and half of December 20-1, TJ Specialty Shop Cengage Nowv2 provides "Show Me How videos dus sales tax and problem. Additional resources, such as Excel templates for completing selected exercises and of December un to Lucy Greene, S620, plus tax of for download from the companion website at Cengage.com. (Debit Sy Wholesalers, 51,200 Dec. 16 Received payment from Lucy Greene on account, $1.9 16 Sold merchandise on account to Kim Fields, $160, plus Sale No. 640. 17 Returned merchandise to Evans Essentials for credir. Site 18 Issued Check No. 813 to Evans Essentials in payment of balance of $1,250, less the credit received on December 1 19 Sold merchandise on account to Lucy Greene, $620. Sale No. 641. Received payment from John Dempsey on account, $1,56 Issued Check No. 814 for the purchase of supplies, $120, 24 Purchased merchandise on account from West Wholesaler Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $800 Invoice No. 817, dated December 26, terms 2/10,n/30. 27 Issued Check No. 815 to KC Power & Light (Utilities Expe month of December, $630. Sold merchandise on account to John Dempsey, $2,020, plus tax $101. Sale No. 642. Received payment from Martha Boyle on account, $2,473 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100. ilities Expense) for the 27 101 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200. As of December 16, TJ's account balances were as follows: Account Account No. Debit Credit Cash $ 9,705 Accounts Receivable 122 10,256 Merchandise Inventory 131 21,800 Estimated Returns Inventory 135 250 Supplies 141 1,035 Prepaid Insurance 145 1,380 Land 8,750 171 52,000 Accum. Depr.--Building 171.1 Store Equipment 181 Accum. Depr.---Store Equipment 28,750 Accounts Payable 181.1 202 203 Building 161 $9.200 Customer Refunds Payable 219 1.378 12,525 90,000 311 312 313 8,500 124,900 401.1 1.430 64,400 Wages Payable Sales Tax Payable Mortgage Payable Tom Jones, Capital Tom Jones, Drawing Income Summary Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Purchases Discounts Freight-In Wages Expense Advertising Expense Supplies Expense Phone Expense Utilities Expense Insurance Expense Depr. Expense-Building Depr. Expense Store Equipment Miscellaneous Expense Interest Expense S01.1 501.2 460 502 175 $11 512 26,100 4,700 524 $25 2,180 6,900 535 540 541 549 551 2,700 1,350 $252,361 $252,361 TJ's also had the following subsidiary ledger balances as of December 16. Accounts Receivable Ledger Accounts Payable Ledger Customer Balance Vendor Balance Martha Boyle Evans Essentials 12 Jude Lane 34 Harry Ave. Hartford, CT 06117 $3,796 East Hartford, CT 05234 $3,600 Nathen Co. Anne Clark 52 Juniper Road 1009 Drake Rd. Hartford, CT 06118 2,100 Farmington, CT 06082 Owen Enterprises John Dempsey 43 Lucky Lane 700 Hobbes Dr. Bristol, CT 06007 Avon, CT 06108 1,560 West Wholesalers Kim Fields 888 Anders Street 5200 Hamilton Ave. Newington, CT 06789 Hartford, CT 06117 Lucy Greene 236 Bally Lane Simsbury, CT 06123 2,800 (continued) 616 COMPREHENSIVE PROBLEM? o be made: moer 31,513 the store following adjustments (a)-(i) need to be Ar the end of the year, the following adus el Unexpired insurance on Decembe a. b) Merchandise inventory as of December J. hi Depreciation expense on the buil $19,700. year $800. fede) Jones estimates that customers will be Depreciation expense on the granted $400 in refunds of this year's sales for the year, $450. next year and the merchandise expected to Wages earned but not paid as of be returned will have a cost of $300. $330. Unused supplies on hand, $525. as of December leder, an accounts ember 16. Este walk in the Posting REQUIRED For those of using working papers: 1. If you are not using the working papers, open a general ledger receivable ledere, and an accounts payable ledger as of Decembe December 16 balance of each of the accounts, with a check mark Reference column. For working paper users and nonsers: 2. Enter transactions for the second half of December in the generali immediately to the accounts receivable and accounts payable leder 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable. 5. Prepare a year-end spreadsheet, an income statement, a statement of equity, and a balance sheet. The mortgage payable includes $600 tha within one year. 6. Journalize and post adjusting entries. 7. Journalize and post closing entries. (Hint: Close all expense and revenue account balances. Then, close Income Summary and Tom Jones, Drawing to Tom Jones, Capital.) 8. Prepare a post-closing trial balance. 9. Journalize and post reversing entries for the adjustments where appropriate of January 1, 20-2. COMPREHENSIVE PROBLEM 2: Accounting Cycle with Subsidiary Ledgers, Part 2 is, During the month of January 20-2, TJ's Specialty Shop engaged in the fol transactions: Jan. Sold merchandise on account to Anne Clark, $3,000, plus tax of 100 plus tax of $150 Sale No. 643. 2 Issued Check No. 818 to Nathen Co. in payment of January of $800, less 2% discount. yment of January 1 balance (cond OBLEM2 A ng Crew Part 617 Jan. 3 Purchased merchandise Invoice No. 678, dated a from Wholesalers, si r 3. 4 215.10. Purchased merchandise on account from Owen Enterprises, $2000 Invoice No. 767, dated January 4, terms 2/10,30. 4 Issued Check No. 819 in payment of phone expense for the month of January, 5180. 8 Sold merchandise for cash, $3,600, plus tax of 5180. Received payment from Lucy Greene in full sculement of account, $1.491 10 Issued Check No. 820 to West Wholesalers in payment of January balance of $1,200. 12 Sold merchandise on account to Mantha Books, $1,000, plus tax of $50. Sale No. 644. Received payment from Anne Clark on account, $2,100. 12 Issued Check No. 821 in payment of wages Wages Expense) for the two-weck period ending January 11, $1,100. 13 Issued Check No. 822 to Owen Enterprises in payment of January 4 purchase. Invoice No. 767, less 2% discount. Martha Boyle returned merchandise for a credit, $800, plus sales tax of $40. 17 Returned merchandise to Evans Essentials for credit, $300. 22 Received payment from John Dempsey on account, $2,121. 26 Issued Check No. 823 in payment of wages Wages Expense) for the two-week period ending January 25, $1,100. 27 Issued Check No. 824 to KC Power & Light (Utilities Expense) for the month of January, S630. Sold merchandise on account to John Dempsey, $2,000, plus tax of $100. Sale No. 645. Late in January, TJ's agreed to sell the business to a competitor. To agree on a selling price, financial statements are needed as of January 31 and for the month of January 20-2. To prepare these financial statements, TJ's must perform the same procedures it normally does at year-end. At the end of January, the following adjustments (a)-(i) need to be made: 4, b) Merchandise inventory as of January 31, le) Unexpired insurance on January 31,5968. $19,000. (h) Depreciation expense on the building for the c) Jones estimates that customers will be month, $67. granted $500 in refunds of this month's (i) Depreciation expense on the store equipment sales in subsequent months, and the mer for the month, 538. chandise expected to be returned will have a 6) Wages earned but not paid as of January 31, cost of $360. $330. A Unused supplies on hand, $115. na general ledger, an ao are the same as the bal eneral journal. Post REQUIRED For those of in working papers 1. If you are not using the working paper.open a general ledere receivable ledges, and an accounts payable ledger as of Januar January 1 balance of each of the accounts, with a check mat I. Reference column. The beginning balances for Part 2 are the theme ances from your solution to Part 1 of Comprehensive Probleme the For working Paper sers and mom STS 2. Enter transactions for the month of January in the general journa diately to the accounts receivable and accounts payable ledere 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable 3. Prepare a month-end spreadsheet income statement, statement of equity, and balance sheet. The mortgage payable includes $600 's ble includes $600 that is due within one year. 6. Journalize and post adjusting entries. 7. Journalize and post dosing entries. (Hint: Close all expense andre account balances. Then close Income Summary and Tom Jones, Draw Tom Jones, Capital.) 8. Prepare a post-closing trial balance. and Tom Jones, Drawing to COMPREHENSIVE PROBLEM 2: Accounting Cycle with Subsidiary Ledgers, Part 1 Shop engaged in the for During the and half of December 20-1, TJ Specialty Shop Cengage Nowv2 provides "Show Me How videos dus sales tax and problem. Additional resources, such as Excel templates for completing selected exercises and of December un to Lucy Greene, S620, plus tax of for download from the companion website at Cengage.com. (Debit Sy Wholesalers, 51,200 Dec. 16 Received payment from Lucy Greene on account, $1.9 16 Sold merchandise on account to Kim Fields, $160, plus Sale No. 640. 17 Returned merchandise to Evans Essentials for credir. Site 18 Issued Check No. 813 to Evans Essentials in payment of balance of $1,250, less the credit received on December 1 19 Sold merchandise on account to Lucy Greene, $620. Sale No. 641. Received payment from John Dempsey on account, $1,56 Issued Check No. 814 for the purchase of supplies, $120, 24 Purchased merchandise on account from West Wholesaler Invoice No. 465, dated December 24, terms n/30. 26 Purchased merchandise on account from Nathen Co., $800 Invoice No. 817, dated December 26, terms 2/10,n/30. 27 Issued Check No. 815 to KC Power & Light (Utilities Expe month of December, $630. Sold merchandise on account to John Dempsey, $2,020, plus tax $101. Sale No. 642. Received payment from Martha Boyle on account, $2,473 29 Issued Check No. 816 in payment of wages (Wages Expense) for the two-week period ending December 28, $1,100. ilities Expense) for the 27 101 30 Issued Check No. 817 to Meyers Trophy Shop for a cash purchase of merchandise, $200. As of December 16, TJ's account balances were as follows: Account Account No. Debit Credit Cash $ 9,705 Accounts Receivable 122 10,256 Merchandise Inventory 131 21,800 Estimated Returns Inventory 135 250 Supplies 141 1,035 Prepaid Insurance 145 1,380 Land 8,750 171 52,000 Accum. Depr.--Building 171.1 Store Equipment 181 Accum. Depr.---Store Equipment 28,750 Accounts Payable 181.1 202 203 Building 161 $9.200 Customer Refunds Payable 219 1.378 12,525 90,000 311 312 313 8,500 124,900 401.1 1.430 64,400 Wages Payable Sales Tax Payable Mortgage Payable Tom Jones, Capital Tom Jones, Drawing Income Summary Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances Purchases Discounts Freight-In Wages Expense Advertising Expense Supplies Expense Phone Expense Utilities Expense Insurance Expense Depr. Expense-Building Depr. Expense Store Equipment Miscellaneous Expense Interest Expense S01.1 501.2 460 502 175 $11 512 26,100 4,700 524 $25 2,180 6,900 535 540 541 549 551 2,700 1,350 $252,361 $252,361 TJ's also had the following subsidiary ledger balances as of December 16. Accounts Receivable Ledger Accounts Payable Ledger Customer Balance Vendor Balance Martha Boyle Evans Essentials 12 Jude Lane 34 Harry Ave. Hartford, CT 06117 $3,796 East Hartford, CT 05234 $3,600 Nathen Co. Anne Clark 52 Juniper Road 1009 Drake Rd. Hartford, CT 06118 2,100 Farmington, CT 06082 Owen Enterprises John Dempsey 43 Lucky Lane 700 Hobbes Dr. Bristol, CT 06007 Avon, CT 06108 1,560 West Wholesalers Kim Fields 888 Anders Street 5200 Hamilton Ave. Newington, CT 06789 Hartford, CT 06117 Lucy Greene 236 Bally Lane Simsbury, CT 06123 2,800 (continued) 616 COMPREHENSIVE PROBLEM? o be made: moer 31,513 the store following adjustments (a)-(i) need to be Ar the end of the year, the following adus el Unexpired insurance on Decembe a. b) Merchandise inventory as of December J. hi Depreciation expense on the buil $19,700. year $800. fede) Jones estimates that customers will be Depreciation expense on the granted $400 in refunds of this year's sales for the year, $450. next year and the merchandise expected to Wages earned but not paid as of be returned will have a cost of $300. $330. Unused supplies on hand, $525. as of December leder, an accounts ember 16. Este walk in the Posting REQUIRED For those of using working papers: 1. If you are not using the working papers, open a general ledger receivable ledere, and an accounts payable ledger as of Decembe December 16 balance of each of the accounts, with a check mark Reference column. For working paper users and nonsers: 2. Enter transactions for the second half of December in the generali immediately to the accounts receivable and accounts payable leder 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable. 5. Prepare a year-end spreadsheet, an income statement, a statement of equity, and a balance sheet. The mortgage payable includes $600 tha within one year. 6. Journalize and post adjusting entries. 7. Journalize and post closing entries. (Hint: Close all expense and revenue account balances. Then, close Income Summary and Tom Jones, Drawing to Tom Jones, Capital.) 8. Prepare a post-closing trial balance. 9. Journalize and post reversing entries for the adjustments where appropriate of January 1, 20-2. COMPREHENSIVE PROBLEM 2: Accounting Cycle with Subsidiary Ledgers, Part 2 is, During the month of January 20-2, TJ's Specialty Shop engaged in the fol transactions: Jan. Sold merchandise on account to Anne Clark, $3,000, plus tax of 100 plus tax of $150 Sale No. 643. 2 Issued Check No. 818 to Nathen Co. in payment of January of $800, less 2% discount. yment of January 1 balance (cond OBLEM2 A ng Crew Part 617 Jan. 3 Purchased merchandise Invoice No. 678, dated a from Wholesalers, si r 3. 4 215.10. Purchased merchandise on account from Owen Enterprises, $2000 Invoice No. 767, dated January 4, terms 2/10,30. 4 Issued Check No. 819 in payment of phone expense for the month of January, 5180. 8 Sold merchandise for cash, $3,600, plus tax of 5180. Received payment from Lucy Greene in full sculement of account, $1.491 10 Issued Check No. 820 to West Wholesalers in payment of January balance of $1,200. 12 Sold merchandise on account to Mantha Books, $1,000, plus tax of $50. Sale No. 644. Received payment from Anne Clark on account, $2,100. 12 Issued Check No. 821 in payment of wages Wages Expense) for the two-weck period ending January 11, $1,100. 13 Issued Check No. 822 to Owen Enterprises in payment of January 4 purchase. Invoice No. 767, less 2% discount. Martha Boyle returned merchandise for a credit, $800, plus sales tax of $40. 17 Returned merchandise to Evans Essentials for credit, $300. 22 Received payment from John Dempsey on account, $2,121. 26 Issued Check No. 823 in payment of wages Wages Expense) for the two-week period ending January 25, $1,100. 27 Issued Check No. 824 to KC Power & Light (Utilities Expense) for the month of January, S630. Sold merchandise on account to John Dempsey, $2,000, plus tax of $100. Sale No. 645. Late in January, TJ's agreed to sell the business to a competitor. To agree on a selling price, financial statements are needed as of January 31 and for the month of January 20-2. To prepare these financial statements, TJ's must perform the same procedures it normally does at year-end. At the end of January, the following adjustments (a)-(i) need to be made: 4, b) Merchandise inventory as of January 31, le) Unexpired insurance on January 31,5968. $19,000. (h) Depreciation expense on the building for the c) Jones estimates that customers will be month, $67. granted $500 in refunds of this month's (i) Depreciation expense on the store equipment sales in subsequent months, and the mer for the month, 538. chandise expected to be returned will have a 6) Wages earned but not paid as of January 31, cost of $360. $330. A Unused supplies on hand, $115. na general ledger, an ao are the same as the bal eneral journal. Post REQUIRED For those of in working papers 1. If you are not using the working paper.open a general ledere receivable ledges, and an accounts payable ledger as of Januar January 1 balance of each of the accounts, with a check mat I. Reference column. The beginning balances for Part 2 are the theme ances from your solution to Part 1 of Comprehensive Probleme the For working Paper sers and mom STS 2. Enter transactions for the month of January in the general journa diately to the accounts receivable and accounts payable ledere 3. Post from the journal to the general ledger 4. Prepare schedules of accounts receivable and accounts payable 3. Prepare a month-end spreadsheet income statement, statement of equity, and balance sheet. The mortgage payable includes $600 's ble includes $600 that is due within one year. 6. Journalize and post adjusting entries. 7. Journalize and post dosing entries. (Hint: Close all expense andre account balances. Then close Income Summary and Tom Jones, Draw Tom Jones, Capital.) 8. Prepare a post-closing trial balance. and Tom Jones, Drawing to