COMPREHENSIVE PROBLEM-ACC110 You will be completing the accounting cyele for one month for a merchandising company. That means you will prepare financial statements for a one month period. The financial statements should be in good form. If you can't prepare the reports formatted properly in Excel then you should prepare them by hand, ie printing a blank working paper using pencil. Proper form includes proper use of dollar signs in columns, commas and single or double underscore when appropriate. Fontana Parts Company uses the periodic inventory method and uses special journals. During October, Fontana Parts Company completed the following transactions. You are responsible for determining the amount paid or received relative to cash discounts (ie. Sales Discounts, Purchase Discounts) All Sales are FOB shipping point, unless otherwise noted: Oct. 1 Fontana invested $50,000 in the business by opening a checking account in the business name Received merchandise from Tark Company. S5,000, invoice dated October 1, terms 2/10, n/30, FOB shipping point. 1 1 2 4 5 6 7 Issued check # 230 to Walters Realtors for Oct and Nov rent, $4,000 Issued check #231 to State Farm Insurance for 1 year liability insurance, $3,600 Purchased Office Supplies, $300 and Store Supplies, $500 from Sanborn company on account. n/30 Received merchandise from La Rock Manufacturing, $10,800, invoice dated October 4, terms 2/10, n/30, FOB shipping point. Purchased Store equipment, $6,000 and Office Equipment, $10,000 from Sanborn Company on account, to be paid Issued check #232 to Rabbit Company for repairs accounting office walls $420. Received $800 credit memorandum pertaining to October 4 shipment from La Rock Manufacturing for return of unsatisfactory merchandis Issued check #233 to Emerald Company for freight charges on October I and October 4 shipments, $368 Sold merchandise to R. Kuldip, $2,000, terms 1/10, n/30 invoice no. 725 mont 8 9 10 Issued check #234 to Tark Company for amount owed to this date 11 Sold merchandise to A. Imoto for $2,500, terms 1/10, n/30, invoice no. 726 Comprehensive ProblemSpringSpecial Journals_ Imonth Issued check #235 to La Rock Manufacturing for balance of account. Purchased advertising on credit from WRRT, invoice dated 13 October 13, $900, terms n/20 15 Issued credit memorandum to A. Imoto for $100 for merchandise returned. 16 Cash sales for the first half of the month, s9,340. (To shorten this problem, cash sales are recorded only twice a month instead of daily, as they would be in actual practice.) 17 18 19 20 Sold merchandise to N. Floy, $1,400, terms l/10, n/30, Invoice #727. Received check from R. Kuldip for October 9 sale for amount due. Received check from A. Imoto for balance of account for amount due. Received merchandise from Tark Company, $5,600, invoice dated October 19, terms 2/10, n/30, FOB shipping point. Received freight bill from Summers Company for merchandise received on October 20, invoice dated October 19, $1,140, terms n/5 21 22 Issued check #236 or advertising purchase of October 13 Received merchandise from La Rock Manufacturing, $7,200, invoice dated October 23, terms 2/10, n/30, FOB shipping point. Issued check #237 or freight charge of October 21 Sold merchandise to R. Kuldip, $1,600, terms 1/10, n/30, invoice no. 728 Received credit memorandum from La Rock Manufacturing for defective merchandise received October 24, $600. Issued check #238 to Western Company for purchase of office supplies, $700. Issued check #239 to Tank Company for half of October 20 purchase. Received check from N. Floy. Sold merchandise to Imoto for $2,000 l/10n/30 Invoice #729. Cash sales for the last half of the month, $8,120. Issued check #240, payable to Payroll-Checking Account, for monthly sales salaries, $3,600 and Office salaries $1,000. Issued check #241 to the owner $1,000 for personal use. 24 25 26 28 29 30 30 31 31 Comprehensive ProblemSpringSpecial Journals_1month Open the following general ledger accounts: Cash (111) Accounts Receivable (112), Prepaid Insurance (113) Prepaid Rent (114) Office Supplies (115) Store Supplies (116) Merchandise Inventory (120) Store Equipment (141) Accumulated Depreciation-Store Equipment (142) Office Equipment (143)Accumulated Depreciation- Office Equipment, (144) Accounts Payable (211) Wages payable (212) Fontana, Capital (310) Fontana, Withdrawal (311) Income Summary (312) Sales (411), Sales Discounts (412), Sales Returns and Allowances (413), Purchases (511), Purchases Discounts (512) Purchases Returns and Allowances (513) Freight-In (514), Sales Salaries Expense (621) Advertising Expense (622), Store supply expense (623) Rent Expense -Selling(631), Insurance expense -Selling (632) Repair expense-Selling (634) Depreciation expense-Store equipment (635) Office Salaries expense (721) Office supply expense (723) Rent expense- General (731) Insurance expense-General (732) Repairs Expense (734) Depreciation expense-Office equipment (735). 3. Open the following Accounts Receivable Subsidiary Ledger accounts: N. Floy, A. Imoto, and R. Kuldip. 4. Open the following Accounts Payable Subsidiary Ledger accounts: La Rock Manufacturing, Sanborm Company, Summers Company, Tark Company, and WRRT. 5. Enter the transactions in the appropriate journal, and post as appropriate. You are responsible for taking or giving a cash discount when appropriate. 6. Prove the control balances of Accounts Receivable and Accounts Payable by preparing Schedules of Accounts Receivable and Accounts Payable. 7. Prepare a merchandising worksheet using the following October Month end information: a. Office supplies on hand $550 b. Store Supplies on hand $175 c. Record Insurance allocating 75% store, 25% office d. Record rent expense using the same allocation as insurance e. Store equipment has a estimated life of 5 years, with a salvage value of $1,200 f. Office equipment has an estimated life of 7 years, with a salvage value of $1,600 Comprehensive ProblemSpringSpecial Journals_1month g. A physical inventory was completed and Merchandise Inventory was determined to be $15,000 at month end. 8. Prepare a Multi-step Income Statement, Statement of Owners Equity and Balance Sheet in good form. 9. Record adjusting entries and closing entries in the General Journal 10. Post to the General Ledger and prepare a Post Closing Trial Balance. COMPREHENSIVE PROBLEM-ACC110 You will be completing the accounting cyele for one month for a merchandising company. That means you will prepare financial statements for a one month period. The financial statements should be in good form. If you can't prepare the reports formatted properly in Excel then you should prepare them by hand, ie printing a blank working paper using pencil. Proper form includes proper use of dollar signs in columns, commas and single or double underscore when appropriate. Fontana Parts Company uses the periodic inventory method and uses special journals. During October, Fontana Parts Company completed the following transactions. You are responsible for determining the amount paid or received relative to cash discounts (ie. Sales Discounts, Purchase Discounts) All Sales are FOB shipping point, unless otherwise noted: Oct. 1 Fontana invested $50,000 in the business by opening a checking account in the business name Received merchandise from Tark Company. S5,000, invoice dated October 1, terms 2/10, n/30, FOB shipping point. 1 1 2 4 5 6 7 Issued check # 230 to Walters Realtors for Oct and Nov rent, $4,000 Issued check #231 to State Farm Insurance for 1 year liability insurance, $3,600 Purchased Office Supplies, $300 and Store Supplies, $500 from Sanborn company on account. n/30 Received merchandise from La Rock Manufacturing, $10,800, invoice dated October 4, terms 2/10, n/30, FOB shipping point. Purchased Store equipment, $6,000 and Office Equipment, $10,000 from Sanborn Company on account, to be paid Issued check #232 to Rabbit Company for repairs accounting office walls $420. Received $800 credit memorandum pertaining to October 4 shipment from La Rock Manufacturing for return of unsatisfactory merchandis Issued check #233 to Emerald Company for freight charges on October I and October 4 shipments, $368 Sold merchandise to R. Kuldip, $2,000, terms 1/10, n/30 invoice no. 725 mont 8 9 10 Issued check #234 to Tark Company for amount owed to this date 11 Sold merchandise to A. Imoto for $2,500, terms 1/10, n/30, invoice no. 726 Comprehensive ProblemSpringSpecial Journals_ Imonth Issued check #235 to La Rock Manufacturing for balance of account. Purchased advertising on credit from WRRT, invoice dated 13 October 13, $900, terms n/20 15 Issued credit memorandum to A. Imoto for $100 for merchandise returned. 16 Cash sales for the first half of the month, s9,340. (To shorten this problem, cash sales are recorded only twice a month instead of daily, as they would be in actual practice.) 17 18 19 20 Sold merchandise to N. Floy, $1,400, terms l/10, n/30, Invoice #727. Received check from R. Kuldip for October 9 sale for amount due. Received check from A. Imoto for balance of account for amount due. Received merchandise from Tark Company, $5,600, invoice dated October 19, terms 2/10, n/30, FOB shipping point. Received freight bill from Summers Company for merchandise received on October 20, invoice dated October 19, $1,140, terms n/5 21 22 Issued check #236 or advertising purchase of October 13 Received merchandise from La Rock Manufacturing, $7,200, invoice dated October 23, terms 2/10, n/30, FOB shipping point. Issued check #237 or freight charge of October 21 Sold merchandise to R. Kuldip, $1,600, terms 1/10, n/30, invoice no. 728 Received credit memorandum from La Rock Manufacturing for defective merchandise received October 24, $600. Issued check #238 to Western Company for purchase of office supplies, $700. Issued check #239 to Tank Company for half of October 20 purchase. Received check from N. Floy. Sold merchandise to Imoto for $2,000 l/10n/30 Invoice #729. Cash sales for the last half of the month, $8,120. Issued check #240, payable to Payroll-Checking Account, for monthly sales salaries, $3,600 and Office salaries $1,000. Issued check #241 to the owner $1,000 for personal use. 24 25 26 28 29 30 30 31 31 Comprehensive ProblemSpringSpecial Journals_1month Open the following general ledger accounts: Cash (111) Accounts Receivable (112), Prepaid Insurance (113) Prepaid Rent (114) Office Supplies (115) Store Supplies (116) Merchandise Inventory (120) Store Equipment (141) Accumulated Depreciation-Store Equipment (142) Office Equipment (143)Accumulated Depreciation- Office Equipment, (144) Accounts Payable (211) Wages payable (212) Fontana, Capital (310) Fontana, Withdrawal (311) Income Summary (312) Sales (411), Sales Discounts (412), Sales Returns and Allowances (413), Purchases (511), Purchases Discounts (512) Purchases Returns and Allowances (513) Freight-In (514), Sales Salaries Expense (621) Advertising Expense (622), Store supply expense (623) Rent Expense -Selling(631), Insurance expense -Selling (632) Repair expense-Selling (634) Depreciation expense-Store equipment (635) Office Salaries expense (721) Office supply expense (723) Rent expense- General (731) Insurance expense-General (732) Repairs Expense (734) Depreciation expense-Office equipment (735). 3. Open the following Accounts Receivable Subsidiary Ledger accounts: N. Floy, A. Imoto, and R. Kuldip. 4. Open the following Accounts Payable Subsidiary Ledger accounts: La Rock Manufacturing, Sanborm Company, Summers Company, Tark Company, and WRRT. 5. Enter the transactions in the appropriate journal, and post as appropriate. You are responsible for taking or giving a cash discount when appropriate. 6. Prove the control balances of Accounts Receivable and Accounts Payable by preparing Schedules of Accounts Receivable and Accounts Payable. 7. Prepare a merchandising worksheet using the following October Month end information: a. Office supplies on hand $550 b. Store Supplies on hand $175 c. Record Insurance allocating 75% store, 25% office d. Record rent expense using the same allocation as insurance e. Store equipment has a estimated life of 5 years, with a salvage value of $1,200 f. Office equipment has an estimated life of 7 years, with a salvage value of $1,600 Comprehensive ProblemSpringSpecial Journals_1month g. A physical inventory was completed and Merchandise Inventory was determined to be $15,000 at month end. 8. Prepare a Multi-step Income Statement, Statement of Owners Equity and Balance Sheet in good form. 9. Record adjusting entries and closing entries in the General Journal 10. Post to the General Ledger and prepare a Post Closing Trial Balance