i need some help with B & C
The following transactions occurred during 2020 (the company uses perpetual inventory system with FIFO): 1) Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock 2) Jan 4 Purchased 20 rabbits at $50 each on account from Jelly Bean Farms. 3) Jan 4 4) Jan 5 Established a $200 petty change fund Sold 6 rabbits for $200 each to Mr. Karrot, terms 2/10, n/30 Sold 12 rabbits at $200 each for cash 5) 6) 7) Jan 6 Jan 8 Jan 9 Paid wages of $240 Mr. Karrot returned one rabbit because they originally ordered only 5. Purchased equipment on account for $2,000 8) 9) 10) Jan 12 Jan 14 Jan 15 Received payment in full from Mr. Karrot Purchased 10 rabbits at $52 each on account from Easter Industries, terms 1/10, n/30. Paid utility bill of $120 11) 12) Jan 15 Jan 16 Returned 2 rabbits to Easter Industries because they were defective. Jan 17 Sold 8 rabbits for $245 each for cash 13) 14) Jan 18 Paid tax bill from 2019. 15) Jan 18 Performed the service of rabbit grooming ($800 worth); we received the cash in 2019 16) Jan 19 Paid Accounts Payable in full from 2019 17) Jan 20 Received $2,200 cash from customers paying on their accounts 18) Jan 21 Received a bill from the local radio station for advertising in the amount of $400 19) Jan 22 Purchased 20 rabbits for $55 each on account from Eggs & Chicks Company: terms 2/5, n/30 20) Jan 23 Paid freight costs from Eggs & Chicks Company of $10. 21) Jan 25 Sold 10 rabbits to Bunny Tail Corporation for $260 each on account: terms 3/10, n/30 22) Jan 26 Received payment in full from Bunny Tail Corporation 23) Jan 27 Sold 10 rabbits to customers on credit for $260 each 24) Jan 28 Paid Eggs & Chicks Company for the purchase on Jan 22 25) Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40 26) Jan 30 Performed a physical inventory count and counted only 1 rabbit on hand. 27) Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check. 28) Jan 31 One month's prepaid insurance needs to be expensed for January ($1,200 is for the whole year) 29) Jan 31 Depreciate one month's worth of the building and equipment (Using straight line method: building has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value) 30) Jan 31 The estimated bad debt expense under the percentage of sales basis is $120. 31) Jan 31 Paid dividends of $500 DIRECTIONS: A) Prepare journal entries for the above items B) Post the journal entries into t-accounts or three-column form of account (starting balances would be those amounts per the post-closing trial balance) Prepare an Income Statement for the month ended January 31, 2020 D) Prepare a Statement of Retained Earnings for the month ended January 31, 2020 E) Prepare a Balance Sheet for January 31, 2020 X x 1231/2019 Easter-R-Us Corporation Post-Closing Trial Balance 12/31/2019 N- w on CR DR $1,200 $2,800 $5,000 $200 $1,200 $3,000 $5,000 6 Cash 7 Accounts Receivable 8 Notes Receivable 9 Allowance for Doubtful Accounts 10 Prepaid Insurance 11 Inventory (Represents NON-rabbit inventory) 12 Equipment 13 Accumulated Depreciation Equipment 14 Building 15 Accumulated Depreciation: Building 16 Accounts Payable 17 Taxes Payable 18 Unearned Revenue 19 Common Stock 20 Retained Earnings $1,000 $100,000 $20,000 $1,800 $1,250 $1,500 $90,000 $2,450 $118,200 $118,200 Type here to search The following transactions occurred during 2020 (the company uses perpetual inventory system with FIFO): 1) Jan 4 Stockholders invested an additional $10,000 cash in the business in exchange for common stock 2) Jan 4 Purchased 20 rabbits at $50 each on account from Jelly Bean Farms. 3) Jan 4 4) Jan 5 Established a $200 petty change fund Sold 6 rabbits for $200 each to Mr. Karrot, terms 2/10, n/30 Sold 12 rabbits at $200 each for cash 5) 6) 7) Jan 6 Jan 8 Jan 9 Paid wages of $240 Mr. Karrot returned one rabbit because they originally ordered only 5. Purchased equipment on account for $2,000 8) 9) 10) Jan 12 Jan 14 Jan 15 Received payment in full from Mr. Karrot Purchased 10 rabbits at $52 each on account from Easter Industries, terms 1/10, n/30. Paid utility bill of $120 11) 12) Jan 15 Jan 16 Returned 2 rabbits to Easter Industries because they were defective. Jan 17 Sold 8 rabbits for $245 each for cash 13) 14) Jan 18 Paid tax bill from 2019. 15) Jan 18 Performed the service of rabbit grooming ($800 worth); we received the cash in 2019 16) Jan 19 Paid Accounts Payable in full from 2019 17) Jan 20 Received $2,200 cash from customers paying on their accounts 18) Jan 21 Received a bill from the local radio station for advertising in the amount of $400 19) Jan 22 Purchased 20 rabbits for $55 each on account from Eggs & Chicks Company: terms 2/5, n/30 20) Jan 23 Paid freight costs from Eggs & Chicks Company of $10. 21) Jan 25 Sold 10 rabbits to Bunny Tail Corporation for $260 each on account: terms 3/10, n/30 22) Jan 26 Received payment in full from Bunny Tail Corporation 23) Jan 27 Sold 10 rabbits to customers on credit for $260 each 24) Jan 28 Paid Eggs & Chicks Company for the purchase on Jan 22 25) Jan 29 Petty cash was replenished and had the following receipts: gas receipt for $20, postage stamps for $39, Office Depot receipt for $16, miscellaneous receipt for $30, travel receipts for $40 26) Jan 30 Performed a physical inventory count and counted only 1 rabbit on hand. 27) Jan 30 Bank statement arrives today and there is a $20 bank service charge as well as a $120 NSF check. 28) Jan 31 One month's prepaid insurance needs to be expensed for January ($1,200 is for the whole year) 29) Jan 31 Depreciate one month's worth of the building and equipment (Using straight line method: building has a useful life of 20 years, equipment has a useful life of 5 years and no salvage value) 30) Jan 31 The estimated bad debt expense under the percentage of sales basis is $120. 31) Jan 31 Paid dividends of $500 DIRECTIONS: A) Prepare journal entries for the above items B) Post the journal entries into t-accounts or three-column form of account (starting balances would be those amounts per the post-closing trial balance) Prepare an Income Statement for the month ended January 31, 2020 D) Prepare a Statement of Retained Earnings for the month ended January 31, 2020 E) Prepare a Balance Sheet for January 31, 2020 X x 1231/2019 Easter-R-Us Corporation Post-Closing Trial Balance 12/31/2019 N- w on CR DR $1,200 $2,800 $5,000 $200 $1,200 $3,000 $5,000 6 Cash 7 Accounts Receivable 8 Notes Receivable 9 Allowance for Doubtful Accounts 10 Prepaid Insurance 11 Inventory (Represents NON-rabbit inventory) 12 Equipment 13 Accumulated Depreciation Equipment 14 Building 15 Accumulated Depreciation: Building 16 Accounts Payable 17 Taxes Payable 18 Unearned Revenue 19 Common Stock 20 Retained Earnings $1,000 $100,000 $20,000 $1,800 $1,250 $1,500 $90,000 $2,450 $118,200 $118,200 Type here to search
