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I need help prepareing an adjusted trial balance, I've done half the part as I got the total of $975,182, but I'm really stuck at
I need help prepareing an adjusted trial balance, I've done half the part as I got the total of $975,182, but I'm really stuck at the bottom part, especially I don't know what to put in the cost of goods sold:
Here's the list of transactions:
The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014, the following events occurred. | ||||||||||||||
1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Terms 2/10, n/30. Freight $100 for each sale, F.O.B. shipping point. | ||||||||||||||
2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for each sale, F.O.B. destination. | ||||||||||||||
3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed. | ||||||||||||||
4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. | ||||||||||||||
5. On January 16, issue credit of $400 to Fieber for merchandise returned. | ||||||||||||||
6. Summary daily cash sales total $15,500. | ||||||||||||||
7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. | ||||||||||||||
8. On Feburary 9, receive payment in full from Rayms and Fischer. | ||||||||||||||
9. On March 1, pay rent of $6,000 for a two-year term. | ||||||||||||||
10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $80, F.O.B. shipping point. | ||||||||||||||
11. Pay $400 cash for office supplies. | ||||||||||||||
12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23. | ||||||||||||||
13. Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash. | ||||||||||||||
14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30. | ||||||||||||||
15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. | ||||||||||||||
16. On July 8, return $200 of merchandise to Maida and receive credit. | ||||||||||||||
17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point. | ||||||||||||||
18. Pay off the balance to Maida on August 4. | ||||||||||||||
19. On August 10, receive half of the payment from Lachey. | ||||||||||||||
20. On August 14, write off $1,300 bad debt for one account, Tooket. | ||||||||||||||
21. Pay utitlities expense, $10,902. | ||||||||||||||
22. On August 1, Lachey pays off its balance. | ||||||||||||||
23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year. | ||||||||||||||
24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the balance sheet. | ||||||||||||||
25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year. | ||||||||||||||
26. An unpaid utilities bill (December, $1,250) is due on January 10 next year. | ||||||||||||||
Additional Information at the end of the year: | ||||||||||||||
1. Depreciation expense for the year was $14,250. | ||||||||||||||
2. The company estimated that it has to pay federal income tax, $3,250. | ||||||||||||||
3. After physically counting, the company decided that the ending inventories worth $40,146. | ||||||||||||||
4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales. | ||||||||||||||
5. Unearned revenue is decreased by $10,000. | ||||||||||||||
6. The company expenses all of the supplies purchased during the year. | ||||||||||||||
7. No insurance policy is effective during the year. | ||||||||||||||
8. The company used the gross method to record its purchases and sales on credit. | ||||||||||||||
9. The company adopts the periodic inventory system. |
Here's the balance sheet:
Thank you.
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