GSLC ACCOUNTING SESI 8 Sources: E Book Financial Accounting 2nd edition Chapter 8 page 401-402 CP8 Victoria Company's statement of financial position at December 31, 2013, is presented below. Victoria Company Statement of Financial Position December 31, 2013 Inventory $ 9,400 Share capital-ordinary $20,000 Accounts receivable 19,780 Retained earnings 12,730 Allowance for doubtful accounts (800) Accounts payable 8,750 Cash 13.100 $41,480 $41,480 During January 2014, the following transactions occurred. Victoria uses the perpetual inventory method. Jan. 1 Victoria accepted a 4-month, 8% note from Leon Company in payment of Leon's $1,500 account. 3 Victoria wrote off as uncollectible the accounts of Barker Corporation (S450) and Elmo Company (5330). 8 Victoria purchased $17,200 of inventory on account. 11 Victoria sold for $25,000 on account inventory that cost $17,500. 15 Victoria sold inventory that cost $780 to Joe Haribo for $1,200. Haribo charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 3%. 17 Victoria collected $22,900 from customers on account 21 Victoria paid $16,300 on accounts payable. 24 Victoria received payment in full (5330) from Elmo Company on the account written off on January 3. 27 Victoria purchased supplies for $1,400 cash. 31 Victoria paid other operating expenses, $3,218. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 5% of the January 31, 2014, accounts receivable. 3. A count of supplies on January 31, 2014, reveals that $470 remains unused. Instructions (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.) GSLC ACCOUNTING SESI 8 Sources: E Book Financial Accounting 2nd edition Chapter 8 page 401-402 CP8 Victoria Company's statement of financial position at December 31, 2013, is presented below. Victoria Company Statement of Financial Position December 31, 2013 Inventory $ 9,400 Share capital-ordinary $20,000 Accounts receivable 19,780 Retained earnings 12,730 Allowance for doubtful accounts (800) Accounts payable 8,750 Cash 13.100 $41,480 $41,480 During January 2014, the following transactions occurred. Victoria uses the perpetual inventory method. Jan. 1 Victoria accepted a 4-month, 8% note from Leon Company in payment of Leon's $1,500 account. 3 Victoria wrote off as uncollectible the accounts of Barker Corporation (S450) and Elmo Company (5330). 8 Victoria purchased $17,200 of inventory on account. 11 Victoria sold for $25,000 on account inventory that cost $17,500. 15 Victoria sold inventory that cost $780 to Joe Haribo for $1,200. Haribo charged this amount on his Visa First Bank card. The service fee charged Victoria by First Bank is 3%. 17 Victoria collected $22,900 from customers on account 21 Victoria paid $16,300 on accounts payable. 24 Victoria received payment in full (5330) from Elmo Company on the account written off on January 3. 27 Victoria purchased supplies for $1,400 cash. 31 Victoria paid other operating expenses, $3,218. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 5% of the January 31, 2014, accounts receivable. 3. A count of supplies on January 31, 2014, reveals that $470 remains unused. Instructions (You may want to set up T-accounts to determine ending balances.) Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual system.)
