Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I properly do the sheets attached? Purchase of inventory, Purchase of Inventory & prepaid freight, Sale of Inventory, Sale of Inventory using Bank

How do I properly do the sheets attached? Purchase of inventory, Purchase of Inventory & prepaid freight, Sale of Inventory, Sale of Inventory using Bank Credit Cards? Also, using the trail balance prepare following statements: a corrected trail balance, multiple step income statement, retained earnings statement & classified balance sheet?

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Chapter 5 - Practice Problems Purchase of Inventory) Problem 1 Oct 1. ABC Company purchased $125.000 of merchandise from a supplier an account, termi 5/10, 1/30 Date Accounts br Cr ABC Company returned $32,000 of the merchandise, receiving a credit me. Date Accounts be Cr Oct 10, the company paid the amount due within the discount period. Date Accounts Dr Cr Problem w2 Nov 12, ABC Company purchased $285,500 of merchandise from a supplier on account, terms 3/10,30 br Cr Date Accounts Nov 20, ABC Company returned $62,375 of the merchandise, receiving a credit memo Dr Cr Date Accounts Nov 22, the company paid the amount due within the discount period. Dr Cr Date Accounts Chapter 5 - Practice Problems (Purchase of Inventory & Prepaid Freight) Problem #3: Prepaid Freight] April 1. ABC Company purchased merchandise from Pink Company, $10,850, terms FOB Shipping Point, 2/10, Neom. Prepaid freight of $200 was added to the invoice Date Accounts Dr Cr Inventory Price Less discount Net Inventory Price Freight Inventory/ Accounts Payable April 11, the company paid the amount due within the discount period Date Accounts Dr Cr Chapter 5 - Practice Problems (Sale of Inventory) Problem #4 (Sale of Inventory on credit, receipt of cash & return) Nov 4, sold merchandise on account, $6,200. The cost of the merchandise sold was $4,900. The invoice terms were 2/10, 1/30 Date Accounts Dr Cr Nov 14, received full payment from customer Date Accounts Dr Dec 2. paid customer a cash refund of $1,050 for returned merchandise from the Nov I sale. The cost of the merchandise returned was $890, Date Accounts Dr Cr Problem #5: Cash Sales Sept 8. Sold merchandise for $12,960 cash. The cost of the merchandise was $9.920. Date Accounts Dr Cr Chapter 5 - Practice Problems (Sale of Inventory using Bank Credit Cards) Problem #6: Sales using Bank Credit Cards Jan 12, sold merchandise on VISA, 5510.000. The cost of the merchandise was $398,500 Date Accounts Dr Gr Jan 31, paid VISA Service fee of $7,650 Practice Problem - Fancial Statements GARRETT, INC. Trial Balance For the Year Ended December 31, 2018 25,000 390,000 185,000 9,000,000 240,000 gite 350.000 25,000 120,000 120,000 195,600 100,000 1.040.000 65.000 3,000,000 2,000,000 25,000 500,000 Untities Payable Cash Estimated Returns Inventory Cost of Goods Sold Accumulated Depreciation, Office Furniture Prepaid Insurance Office Supplies Depreciation Expense, Office Fumiturc Advertising Expense Customer Refunds Payable Supplies Expense Rent Expense - Selling Space Salaries Expense Store Equipment Merchandise Inventory Utilities Expense Office Equipment Common Stock Depreciation Expense, Office Equipment Accounts Payable Accumulated Depreciation, Store Equipment Store Salaries Expense Accounts Receivable Sales Dividends Accumulated Depreciation, Office Equipment Salaries Payable Rent Expense - Office Space Office Furniture Notes Payable (Due in 2 years) Insurance Expense Retained Earnings, January 1, 2018 Depreciation Expense, Store Equipment 3,500,000 100,000 945,000 600,000 30.000 210,000 13.400,000 130,000 200.000 95.000 400,000 1.200.000 950.000 200,000 500.000 300,000 20,650,600 20,650,600 Use the above Trial Balance to prepare the following statements: I) A Corrected Trial Balance 2) Multiple Step Income Statement 3) Retained Earnings Statement 4) Classifed Balance Sheet Check Figures Cost of Goods Sold Gross Profit Total Operating Expenses Net Income Retained Earnings, December 31 Current Assets Total Assets Current Liabilities Current Liabilities & Equity 9,000,000 4,400,000 3,200,000 1,200,000 1,570,000 3,620,600 7,280,600 1,260,600 7.280.600

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Payroll Accounting 2020

Authors: Jeanette Landin

6th Edition

1260943895, 9781260943894

More Books

Students also viewed these Accounting questions