ID: A Name: 4. Bill Blumberg owns an auto parts business called Bill's Auto Parts. The following transactions took place during July of the current year. July 5 Purchased merchandise on account from Wheeler Warehouse, $4,300. 8 Paid freight charge on merchandise purchased, $230. 12 Sold merchandise on account to Big Time Spoiler, $3,500. The merchandise cost $2,500. 15 Received a credit memo from Wheeler Warehouse for merchandise, $670. 22 Issued a credit memo to Big Time Spoiler for merchandise returned, $820. The cost of the merchandise is $550. Required: Journalize the above transactions in a general journal using the periodic inventory 1. method. Journalize the above transactions in a general journal using the perpetual inventory 2. method. Name: ID: A 5. Journalize the necessary adjusting entries for the following (partial) trial balance. Based on a physical count, the ending merchandise inventory is $67.000. Unearned revenue at year-end was $4,230. Account Title Credit Debit 7,500 Cash Accounts Receivable 17,000 Merchandise Inventory Unearned Revenue 86,000 20,800 193,000 Revenue Purchases Purchases Discounts 82,000 4,100 ID: A 6. The trial balance for December 31, 20-- has been entered below on the partial work sheet for Camping Supply Center. Required: 1. Complete the Adjustments columns using the following year-end adjustments information. Identify each adjustment with its corresponding letter. a./b. Based on a physical count, it was determined that merchandise inventory costing $21,700 is on hand as of December 31, 20--. Supplies remaining at the end of the year, $6,300. Unexpired insurance on hand at the end of the year, $2,200. Depreciation expense on the store equipment, $2,500. Depreciation expense on the building, $2,700. Unearned Rental Revenue as of December 31, $3,200. Wages earned but not yet paid, $660. c. d. e. f. g. h. Complete the Adjusted Trial Balance columns of the work sheet. Journalize the adjusting entries. 2. 3. Name: - The Income Statement and Balance Sheet columns below are from the work sheet of the Mandle Compan for the year ended December 31, 20-, Mandle Company Work Sheet (partial) For the year ended December 31, 20-- Income Statement Balance Sheet Debit 24, 000 T2,500 8,000 Account Title Debit Credit Credit Cash Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Store Equipment Accumulated Depreciation-Store Equipment Ofice Equipment Accumulated Depreciation Office Equipment Accounts Payable Salaries Payable Long-Term Notes Payable H. Mandle, Capital H. Mandle, Drawing Income Summary 550 1,200 750 33,000 19,000 9,000 5,000 9, 900 200 18,000 45, 300 16,000 8,500 8,000 Sales 31,000 Sales Returns and Allowances Purchases 250 13,500 Purchases Returns and Allowances 350 Purchases Discounts Sales Salary Expense (selling) Office Salary Expense (general) Store Supplies Expense (selling) Office Supplies Expense (general) Insurance Expense (general) Depreciation Expense Store Equipment (selling) Depreciation Expense-Office Equipment (general) 200 4, 600 3,500 150 200 400 400 450 97,400 7,600 105.000 31, 950 7, 600 39,550 39,550 105,000 Net Income 105,000 39,550 Required: Prepare a multi-step income statement for Mandle Company for the current fiscal year. Include separate sections for selling expenses and general expenses under the heading "Operating Expenses" by using the classifications provided in the Account Title column of the work sheet. 8. me: 8. The Income Statement and Balance Sheet columns below are from the work sheet of Blecker Stret Bourt for the year ended December 31, 20- ID: A Required: Using the work sheet, compute (a) total current assets, (b) working capital, (c) current ratio, and (d) accounts receivable turnover. (Accounts receivable balance on January 1, 20- was $23,200). Round to 2 decimal places. All sales are on account. Bleeker Street Bounty Work Sheet (partial) For the year ended December 31, 20- Income Statement Balance Sheet Account Title Debit Credit Cash Debit 12,300 25,000 16,000 1,100 Credit Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Store Equipment Accumulated Depreciation Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Salaries Payable Long-Term Notes Payable Carlo Perez, Capital Carlo Perez, Drawing Income Summary Sales 600 1,500 66,000 38,000 18,000 10,000 22, 300 400 36,000 50,600 32,000 17,000 16,000 61, 500 Sales Returns and Allowances 500 Purchases 23,000 Purchases Returns and Allowances 700 Purchases Discounts Sales Salary Expense (selling) Office Salary Expense (general) Store Supplies Expense (selling) Office Supplies Expense (general) Insurance Expense (general) Depreciation Expense Store Equipment (selling) Depreciation Expense Office Equipment (general) 400 9,200 10,500 300 400 B00 80 900 63, 400 15,200 78,600 78,600 172, 500 157, 300 15,200 172,500 00 Net Income 7B,600 9. . Athe completion of the current fiscal year ending December 31, the balance of Accounts Receivable for CertaPro Painters was $22,300. Credit sales for the year were $515,000. ID: A Required: Make the necessary adjusting entry in general journal form under each of the following assumptions, 1. Allowance for Bad Debts has a credit balance of $870. The percentage of sales method is used and bad debt expense is estimated to be 1.0% of credit sales. b. a. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,580 in uncollectible accounts. Allowance for Bad Debts has a debit balance of $615. The percentage of sales method is used and bad debt expense is estimated to be 0.8% of credit sales. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $1,510 in uncollectible accounts. 2. a. b. 10. Empire Bridal Boutique has a credit balance of $620 in its allowance for bad debts account as of December 31, 20-, An analysis of the accounts receivable of Empire Bridal Boutique as of the same date, reveals the following: Est. Percentage Uncollectible Age Interval Not due 1-30 days past due 31-60 days past due Over 60 days past due Balance $63, 000 28 7,100 5% 6, 300 2,900 $79, 300 118 40% Required: Prepare an aging schedule as of December 31, 20-. 1. 2. Prepare the adjusting entry to record the Bad Debt Expense at the end of the year. Determine the net accounts reccivables at December 31, 20--. 3. 11. For the following notes, calculate the due date. Date of Note 1. Term of Note 50 days Due Date Jan. 5 80 days Apr. 18 2. 90 days 3. Aug. 20 Sep. 11 110 days 4. 120 days Oct. 24 5. 10 teDesk hp me: ID: A 12. Record the following transactions for Pro Line Communications Inc. in the general journal. May 30 Accepted a 60-day, 12% note for $11,000 from Photo Master as payment on an account receivable. July 16 Accepted a 60-day, 1% note for $6,000 from Impact Images as payment on an account receivable. Received interest due on Photo Master note. The note is renewed for 45 days at 29 13% interest. Aug. 15 Discounted the note from Impact Images at the bank at a 10% discount rate. 28 Received full payment of the Photo Master note. Received notice from the bank that the Impact Images note is dishonored. Pro Line Communications Inc. paid the bank for the dishonored note plus interest. The dishonored Impact Images note is paid, plus 10% interest on the maturity Sept. 14 Oct. 20 value. Page 1 GENERAL JOURNAL Post Credit Ref. Debit Description Date 11