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Student Name: 0 Class: GB 518 Unit 03 Assignment Problem 04-03A REX COMPANY General Journal Date Account Titles Adjusting Entries: Jan. 31 Store Supplies Expense Store Supplies To record store supplies expense. Trans. no. Debit Credit - 31 Insurance Expense Prepaid Insurance To record expired insurance. - 31 Depreciation Expense, Store Equipment Accumulated Depreciation, Store Equipment To record depreciation expense. - 31 Cost of Goods Sold Merchandise Inventory To adjust inventory for shrinkage. - REX COMPANY Income Statement For Year Ended January 31, 2011 Sales Less: Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit - Expenses: Selling expenses Depreciation expense, Store equipment Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Total selling expenses - - General and administrative expenses Insurance expense Office salaries expense Rent expense-Office space Total general and administrative expenses Total expenses Net income $Try again! REX COMPANY Income Statement For Year Ended January 31, 2011 Net sales Expenses Cost of goods sold Selling expenses General and administrative expense Total expenses Net income $$Try again! REX COMPANY Ratios Current ratio: Current assets: Cash Merchandise inventory Store supplies Prepaid insurance Total current assets Current liabilities Current ratio #DIV/0! #DIV/0! Acid-test ratio: Quick assets: Cash Current liabilities Acid-test ratio $0 $0 #DIV/0! #DIV/0! Gross margin ratio: Net sales Cost of goods sold Gross margin Gross margin ratio $$#DIV/0! #DIV/0! $0 Use information from BTN 4-9 Problem 6-4A Use information from A-G to answer the problem The following informationis available to rconcile Clark Company's book balance of cash with its bank statement cash balance as of July 31, 2011. a. On July 31, the company's Cash account has a $26, 193 debit balance, but its July bank statement shows a $28,020 cash balance. b. Check NO. 3031 for $1380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check NO. 3040 is listed with the July canceled checks, but Check NO. 3031 is not. Also, Check NO. 3065 for $336 and Check NO. 3069 for $2148, both written in July, are not among the canceled checks on the July 31 statement. c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check NO. 3056 for the July rent was correctly written and drawn for $1250 but was erroneously entered in the accounting records as $1230. d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement. e. A debit memorandum for $805 list a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF. f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. g. Clark's July 31 daily cash receipts of $10,152 were placed in the bank's night depository on that date, but do not appear on the July 31 bank statement. 1. Prepare the bank reconciliation for this company as of July 31, 2011 2. Prepare the journal entries necessary to bring the company's book balance of cash into conformity with the reconciled cash balance as of July 31, 2011. Student Name: 0 Class: GB 518 Unit 03 Assignment Problem 04-03A REX COMPANY General Journal Date Account Titles Adjusting Entries: Jan. 31 Store Supplies Expense Store Supplies To record store supplies expense. Trans. no. Debit Credit 3,150 3,150 1,500 - Correct! 400 - Correct! 1,500 31 Depreciation Expense, Store Equipment Accumulated Depreciation, Store Equipment To record depreciation expense. - Correct! 1,400 31 Insurance Expense Prepaid Insurance To record expired insurance. - Correct! 1,400 31 Cost of Goods Sold Merchandise Inventory To adjust inventory for shrinkage. 400 REX COMPANY Income Statement For Year Ended January 31, 2011 Sales Less: Sales discounts Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses: Selling expenses Depreciation expense, Store equipment Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Total selling expenses General and administrative expenses Insurance expense Office salaries expense Rent expense-Office space Total general and administrative expenses Total expenses Net income $104,000 $1,000 2,000 3,000 101,000 37,800 63,200 1,400 15,500 7,000 3,150 9,900 36,950 1,500 15,500 7,000 24,000 60,950 $2,250 Correct! REX COMPANY Income Statement For Year Ended January 31, 2011 Net sales Expenses Cost of goods sold Selling expenses General and administrative expense Total expenses Net income $101,000 37,800 36,950 24,000 98,750 $2,250 Correct! REX COMPANY Ratios Current ratio: Current assets: Cash Merchandise inventory Store supplies Prepaid insurance Total current assets Current liabilities Current ratio Acid-test ratio: Quick assets: Cash Current liabilities Acid-test ratio Gross margin ratio: Net sales Cost of goods sold Gross margin Gross margin ratio $2,200 11,100 1,650 800 $15,750 $9,000 1.75 - Correct! $2,200 $9,000 0.24 - Correct! $101,000 37,800 $63,200 0.63 - Correct