I need help with question 2: journalizing the above transactions^^^. Thanks.
Zipparoo Chart of Accounts 35 Dividends 11 Cash 41 Sales revenue 12 Accounts Receivable 13 Allowance for Doubtful Accounts 42 Sales returns and Allowances 14 Office Supplies 43 Sales discounts 51 Insurance Expense 15 Prepaid Rent 16 Inventory 52 Uncollectible Account Expense 53 Rent Expense 17 Prepaid Insurance 18 Equipment 54 Cost of Goods Sold 19 Accumulated Depreciation 55 Office Supplies Expense 21 Accounts Payable 56 Interest Expense 22 Salaries Payable 57 Depreciation Expense 58 Utilities Expense 23 Deferred Revenues 59 Salaries Expense 25 Long-term Debt 31 Common Stock 60 Purchase Discount Lost/Taken 34 Retained Earnings Balance Sheet (previous month) Liabilities Assets Accounts Payable Salaries Payable Unearned Revenues Long-term Debt Total Liabilities Cash 53,000 31,000 9,000 2,000 Accounts Receivable Allow For Doubtful Accts Office Supplies Inventory Prepaid Rent Equipment Accumulated Depreciation (3,000) 7,000 20,000 27,000 18,000 58,000 48,000 Equities Common Stock 100,000 (35,000) 111,000 Retained Earnings Total Equities Total Liab and Equities 50,000 161,000 219,000 Total Assets 219,000 Income Statement (previous month) Sales Revenue 60,000 Cost of Goods Sold 12,000 Gross Profit 48,000 Salaries Expense Bad Debt Expense Rent Expense Office Supplies Expense Depreciation Expense Operating Income Gain on Sale of Equipment Interest Expense 9,000 6,000 7,000 3,000 8,000 33,000 15,000 3,000 (5,000) (2,000) 13,000 Net Income Statement of Retained Earnings (previous month) Beginning Retained Earnings 40,000 Net Income 13,000 Dividends (3,000) Ending Retained Earnings 50,000 Jan. 28 One of Zipparoo's customers, Rooth, owes $2,100 but has informed Zipparoo that he will not pay because of bankruptey. Zipparoo writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475 Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of "Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000 Zipparoo uses the straight-line depreciation method 2. Jourmalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED. 3. Post the entries to the ledger. 4. Prepare a trial balance as of January 31, 2001. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Joumalize and post the adjusting entries using the following information: 5. Round all calculations to the nearest dollar. a. Zipparoo estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. Transactions during the month: Jan. 1 Paid $2,400 for a one-year premium on property and casualty insurance. The policy covers the period January 1, 2001 to December 31, 2002 b. Office Supplies at the end of the year totaled $3,000 Jan. 1 Sold 700 "Zips" to Joey on account for $60 each, terms 2/10, net 30 c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar Jan. 2 Zipparoo purchased additional equipment for cash for $21,000. The equipment has an expected life of fo years and an estimated salvage value of $4,500 Salaries of $2,100 for January will not be paid until February 5 ofnext month Jan. 5 Joey retuned 60 pairs of "Zips" because of defections. The inventory could not be resold and was disposed of. e. In a prior month,12 month's rent had been purchased in advance for $96,000. Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numerical order Jan. 8 Purchased 600 pairs of "Zips" from Blueyon account for $20 each, terms 3/10, net 60. Jan. 9 Office supplies totaling $7,100 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. f. Must record insurance use this month Jan. 12 Sold 700 pairs of "Zips" to Pete on account for $80 each, terms 2/10, net 30 g. A physical count of inventory indicates there is $2,500 of inventory on hand Jan. 14 Purchased 450 pairs of "Zips" from Kanga on account for $15 each, terms 2/10, net 30. 6. Prepare an adjusted trial balance. Jan. 17 Paid full amount owed to Bluey from Jan. 8 purchase. 7. Using the adjusted trial balance, prepare an income statement, a statement of retained eamings, and a balance sheet. You will have to include the Merchandising Company requirements of the Income Statement. Note: For our problem, there are no income taxes. Jan.18 Paid $10,000 for workers' salaries. This amount includes amounts owed from the previous month 8. Joumalize and post the closing entries Jan. 23 Delivered 310 pairs of "Zips" to Flash who had purchased them in advance last month, $11.000 9. Prepare a post-closing trial balance. Jan. 24 Paid interest on Long-Term Debt, $5,500. Jan. 25 Paid dividends to stockholders, $3,500. Jan. 26 Received cash from customers billed in the previous month, $10,000. Jan. 27 Pete paid full amount owed Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase. Zipparoo Chart of Accounts 35 Dividends 11 Cash 41 Sales revenue 12 Accounts Receivable 13 Allowance for Doubtful Accounts 42 Sales returns and Allowances 14 Office Supplies 43 Sales discounts 51 Insurance Expense 15 Prepaid Rent 16 Inventory 52 Uncollectible Account Expense 53 Rent Expense 17 Prepaid Insurance 18 Equipment 54 Cost of Goods Sold 19 Accumulated Depreciation 55 Office Supplies Expense 21 Accounts Payable 56 Interest Expense 22 Salaries Payable 57 Depreciation Expense 58 Utilities Expense 23 Deferred Revenues 59 Salaries Expense 25 Long-term Debt 31 Common Stock 60 Purchase Discount Lost/Taken 34 Retained Earnings Balance Sheet (previous month) Liabilities Assets Accounts Payable Salaries Payable Unearned Revenues Long-term Debt Total Liabilities Cash 53,000 31,000 9,000 2,000 Accounts Receivable Allow For Doubtful Accts Office Supplies Inventory Prepaid Rent Equipment Accumulated Depreciation (3,000) 7,000 20,000 27,000 18,000 58,000 48,000 Equities Common Stock 100,000 (35,000) 111,000 Retained Earnings Total Equities Total Liab and Equities 50,000 161,000 219,000 Total Assets 219,000 Income Statement (previous month) Sales Revenue 60,000 Cost of Goods Sold 12,000 Gross Profit 48,000 Salaries Expense Bad Debt Expense Rent Expense Office Supplies Expense Depreciation Expense Operating Income Gain on Sale of Equipment Interest Expense 9,000 6,000 7,000 3,000 8,000 33,000 15,000 3,000 (5,000) (2,000) 13,000 Net Income Statement of Retained Earnings (previous month) Beginning Retained Earnings 40,000 Net Income 13,000 Dividends (3,000) Ending Retained Earnings 50,000 Jan. 28 One of Zipparoo's customers, Rooth, owes $2,100 but has informed Zipparoo that he will not pay because of bankruptey. Zipparoo writes off Rooth's account as uncollectible. Jan. 30 Paid utilities for January of $475 Additional information at the BEGINNING of the month: 1. Inventory consists of 1,000 pairs of "Zips", each costing $18. Zipparoo uses the LIFO inventory method. Round all inventory calculations to the nearest dollar. 2. The net method is used for recording purchases 3. The Equipment of $100,000 was originally purchased 10 years ago. At that time, it was estimated that the equipment would have a useful life of 20 years and a salvage value of $30,000 Zipparoo uses the straight-line depreciation method 2. Jourmalize each of the above transactions. EXPLANATIONS ARE NOT REQUIRED. 3. Post the entries to the ledger. 4. Prepare a trial balance as of January 31, 2001. 4. Zipparoo uses the Percentage-of-Receivables method of accounting for bad debts. 5. Joumalize and post the adjusting entries using the following information: 5. Round all calculations to the nearest dollar. a. Zipparoo estimates that 10% of accounts owed to the company would not be collected. Round to the dollar. Transactions during the month: Jan. 1 Paid $2,400 for a one-year premium on property and casualty insurance. The policy covers the period January 1, 2001 to December 31, 2002 b. Office Supplies at the end of the year totaled $3,000 Jan. 1 Sold 700 "Zips" to Joey on account for $60 each, terms 2/10, net 30 c. Must take depreciation for equipment use this month for both old and new equipment. Round Total depreciation to the dollar Jan. 2 Zipparoo purchased additional equipment for cash for $21,000. The equipment has an expected life of fo years and an estimated salvage value of $4,500 Salaries of $2,100 for January will not be paid until February 5 ofnext month Jan. 5 Joey retuned 60 pairs of "Zips" because of defections. The inventory could not be resold and was disposed of. e. In a prior month,12 month's rent had been purchased in advance for $96,000. Set up the entire general ledger using these accounts before you start into the project. Keep the accounts in numerical order Jan. 8 Purchased 600 pairs of "Zips" from Blueyon account for $20 each, terms 3/10, net 60. Jan. 9 Office supplies totaling $7,100 were purchased on account. Jan. 9 Joey paid full amount owed. Round calculations to the nearest dollar. f. Must record insurance use this month Jan. 12 Sold 700 pairs of "Zips" to Pete on account for $80 each, terms 2/10, net 30 g. A physical count of inventory indicates there is $2,500 of inventory on hand Jan. 14 Purchased 450 pairs of "Zips" from Kanga on account for $15 each, terms 2/10, net 30. 6. Prepare an adjusted trial balance. Jan. 17 Paid full amount owed to Bluey from Jan. 8 purchase. 7. Using the adjusted trial balance, prepare an income statement, a statement of retained eamings, and a balance sheet. You will have to include the Merchandising Company requirements of the Income Statement. Note: For our problem, there are no income taxes. Jan.18 Paid $10,000 for workers' salaries. This amount includes amounts owed from the previous month 8. Joumalize and post the closing entries Jan. 23 Delivered 310 pairs of "Zips" to Flash who had purchased them in advance last month, $11.000 9. Prepare a post-closing trial balance. Jan. 24 Paid interest on Long-Term Debt, $5,500. Jan. 25 Paid dividends to stockholders, $3,500. Jan. 26 Received cash from customers billed in the previous month, $10,000. Jan. 27 Pete paid full amount owed Jan. 27 Paid full amount owed to Kanga from Jan. 14 purchase
