Due December 5, 2017

Small Kine Company closes its books and prepares financial statements at the end of each month.Small Kine uses the perpetual inventory system. The company completed the following transactions during August, 2017:

Aug1Issued check no. 682 for August rent of $1,400

2Issued check no. 683 to pay salaries of $1,240, which includes salary payable of $930 from July 31 (ignore payroll deductions).

2Issued invoice no. 503 for sale on account to G. Whiz, $600. Small Kine's cost of this merchandise was $190.

3Purchased inventory on credit terms of 1/15, n/60 from Squid, Inc., $1,400

4Received net amount of cash on account from Good Company, $2,156, within the discount period.

4Sold inventory for cash, $330 (cost, $104)

5Received full payment from Pen Inc., within the discount period

6Collected interest revenue of $1,100

7Issued invoice no. 504 for sale on account to P.B. Jay, $2,400 (cost, $759)

8Issued check no. 685 to pay Badd Company $2,600 of the amount owed at July 31. This payment occurred after the discount period.

11Issued check no. 686 to pay Squid, Inc. the net amount owed from August 3

12Received cash from G. Whiz in full settlement of her account receivable from August 2

16Issued check no. 687 to pay salary expense of $1,240

19Purchased inventory for cash $850, issuing check no. 688

19Received the July 31 amount receivable from P.B. Jay plus forfeited discount of $200

22Purchased furniture on credit terms of 3/15, n/60 from Inn Corporation, $510

23Sold inventory on account to Good Company, issuing invoice no. 505 for $9,900 (cost, $3,152)

25Issued check no. 689 to pay utilities, $432

26Purchased supplies on credit terms 2/10, n/30 from Badd Company, $180

30Returned damaged inventory to company from whom Small Kine made the cash purchase on August 19, receiving cash of $850

30Granted a sales allowance of $175 to P.B. Jay

31Purchased inventory on credit terms 1/10, n/30 from Much Supply, $8,330

31Issued check no. 690 to Yu Smaht, owner of the business, for personal withdrawal, $1,700

Requirements:

1.The chart of accounts with account balances as of July 31, 2017 are as follows:

General Ledger

101Cash$5,904401Sales Revenue

102Accounts Receivable23,546402Sales Discount Forfeited

104Interest Receivable

105Inventory41,800410Interest Revenue

109Supplies1,340501Cost of Goods Sold

117Prepaid Insurance2,200510Salary Expense

140Note Receivable, Long-Term 11,000513Rent Expense

160Furniture37,270514Depreciation Expense

161Accumulated Depreciation10,550516Insurance Expense

201Accounts Payable11,200517Utilities Expense

204Salary Payable930519Supplies Expense

207Interest Payable320523Interest Expense

210Refund Payable200

220Note Payable, Long-Term42,000

301Yu Smaht, Capital57,860

302Yu Smaht, Withdrawals

400 Income Summary

Accounts Receivable Subsidiary Ledger:

Good Company, $2,156

G. Whiz, 0

Pen Inc., 11,590

P.B. Jay, 9,800

Accounts Payable Subsidiary Ledger:

Inn Corporation $0

Badd Company 11,200

Squid, Inc,0

Much Supply0

2.Journalize the August transactions in the general journal (pages 5-10). Do not include the explanations.Small Kine makes all credit sales on terms of 2/10, n/30 unless otherwise indicated.I have posted the beginning balances to the general ledgers and subsidiary ledgers for you.

3.Post daily to the general ledger (page 11 - 18).Also post to the accounts receivable subsidiary ledger (page 19) and the accounts payable subsidiary ledger (page 20) when appropriate. On August 31 post to the general ledger.

4.Prepare a Trial Balance (Page 21) in the Trial Balance Columns of a Worksheet (Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet headings).

Check figure:Trial Balance before any adjusting entries should total $142,647

5.The values for your adjusting entries are all different. Please see the PAGE 4 to see your adjusting values:

a.Accrued interest revenue

b.Supplies on hand

c.Prepaid insurance expired

d.Depreciation expense

e.Accrued salary expense

f.Accrued interest expense

g.Inventory on hand

6.Prepare Small Kine Kine Company's multi-step Income Statement for the month of August, 2017. (Page 22)

7.Prepare Small Kine's Balance Sheet at August 31, 2017. (Page 22)

8.Journalize and post the adjusting entries (post in General Journal)

9.Journalize and post the closing entries (post in General Journal)

10.Prepare a Post-Closing Trial Balance at August 31, 2017. (Page 22)

11.Balance the total of customer accounts in the accounts receivable subsidiary ledger against the Accounts Receivable balance in the General Ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the General Ledger. (Pages 11 - 20)

Accounting 201 - Fall 2017 Comprehensive Problem (50 Points) Name Due December 5, 2017 Small Kine Company closes its books and prepares financial statements at the end of each month. Small Kine uses the perpetual inventory system. The company completed the following transactions during August, 2017: Aug 1 2 2 3 4 4 5 6 7 8 11 12 16 19 19 22 23 25 26 30 30 31 31 Issued check no. 682 for August rent of $1,400 Issued check no. 683 to pay salaries of $1,240, which includes salary payable of $930 from July 31 (ignore payroll deductions). Issued invoice no. 503 for sale on account to G. Whiz, $600. Small Kine's cost of this merchandise was $190. Purchased inventory on credit terms of 1/15, n/60 from Squid, Inc., $1,400 Received net amount of cash on account from Good Company, $2,156, within the discount period. Sold inventory for cash, $330 (cost, $104) Received full payment from Pen Inc., within the discount period Collected interest revenue of $1,100 Issued invoice no. 504 for sale on account to P.B. Jay, $2,400 (cost, $759) Issued check no. 685 to pay Badd Company $2,600 of the amount owed at July 31. This payment occurred after the discount period. Issued check no. 686 to pay Squid, Inc. the net amount owed from August 3 Received cash from G. Whiz in full settlement of her account receivable from August 2 Issued check no. 687 to pay salary expense of $1,240 Purchased inventory for cash $850, issuing check no. 688 Received the July 31 amount receivable from P.B. Jay plus forfeited discount of $200 Purchased furniture on credit terms of 3/15, n/60 from Inn Corporation, $510 Sold inventory on account to Good Company, issuing invoice no. 505 for $9,900 (cost, $3,152) Issued check no. 689 to pay utilities, $432 Purchased supplies on credit terms 2/10, n/30 from Badd Company, $180 Returned damaged inventory to company from whom Small Kine made the cash purchase on August 19, receiving cash of $850 Granted a sales allowance of $175 to P.B. Jay Purchased inventory on credit terms 1/10, n/30 from Much Supply, $8,330 Issued check no. 690 to Yu Smaht, owner of the business, for personal withdrawal, $1,700 1 of 3 Accounting 201 - Fall 2017 Comprehensive Problem (50 Points) Name Requirements: 1. The chart of accounts with account balances as of July 31, 2017 are as follows: General Ledger 101 102 104 105 109 117 140 160 161 201 204 207 210 220 301 302 400 Cash Accounts Receivable Interest Receivable Inventory Supplies Prepaid Insurance Note Receivable, Long-Term Furniture Accumulated Depreciation Accounts Payable Salary Payable Interest Payable Refund Payable Note Payable, Long-Term Yu Smaht, Capital Yu Smaht, Withdrawals Income Summary $ 5,904 23,546 401 402 Sales Revenue Sales Discount Forfeited 41,800 1,340 2,200 11,000 37,270 10,550 11,200 930 320 200 42,000 57,860 410 501 510 513 514 516 517 519 523 Interest Revenue Cost of Goods Sold Salary Expense Rent Expense Depreciation Expense Insurance Expense Utilities Expense Supplies Expense Interest Expense Accounts Receivable Subsidiary Ledger: Good Company, $2,156 G. Whiz, 0 Pen Inc., 11,590 P.B. Jay, 9,800 Accounts Payable Subsidiary Ledger: Inn Corporation $ 0 Badd Company 11,200 Squid, Inc, 0 Much Supply 0 2. Journalize the August transactions in the general journal (pages 5-10). Do not include the explanations. Small Kine makes all credit sales on terms of 2/10, n/30 unless otherwise indicated. I have posted the beginning balances to the general ledgers and subsidiary ledgers for you. 3. Post daily to the general ledger (page 11 - 18). Also post to the accounts receivable subsidiary ledger (page 19) and the accounts payable subsidiary ledger (page 20) when appropriate. On August 31 post to the general ledger. 4. Prepare a Trial Balance (Page 21) in the Trial Balance Columns of a Worksheet (Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet headings). Check figure: Trial Balance before any adjusting entries should total $142,647 2 of 3 Accounting 201 - Fall 2017 Comprehensive Problem (50 Points) 5. Name The values for your adjusting entries are all different. Please see the PAGE 4 to see your adjusting values: a. b. c. d. e. f. g. Accrued interest revenue Supplies on hand Prepaid insurance expired Depreciation expense Accrued salary expense Accrued interest expense Inventory on hand 6. Prepare Small Kine Kine Company's multi-step Income Statement for the month of August, 2017. (Page 22) 7. Prepare Small Kine's Balance Sheet at August 31, 2017. (Page 22) 8. Journalize and post the adjusting entries (post in General Journal) 9. Journalize and post the closing entries (post in General Journal) 10. Prepare a Post-Closing Trial Balance at August 31, 2017. (Page 22) 11. Balance the total of customer accounts in the accounts receivable subsidiary ledger against the Accounts Receivable balance in the General Ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the General Ledger. (Pages 11 - 20) 3 of 3