Microsoft Word - ACC 201 QUESTIONS.doc

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American Meter Company closes its books and prepares financial statements at the end of each month. American uses the perpetual inventory system. The company completed the following transactions during August, 2015:

Accounting 201 Comprehensive Problem (100 Points) Name Due April 13, 2015 American Meter Company closes its books and prepares financial statements at the end of each month. American uses the perpetual inventory system. The company completed the following transactions during August, 2015: Aug 1 2 2 3 4 4 5 5 6 7 8 11 12 16 19 19 22 23 25 26 30 30 31 31 Issued check no. 682 for August rent of $1,000 Issued check no. 683 to pay salaries of $1,240, which includes salary payable of $930 from July 31 (ignore payroll deductions). Issued invoice no. 503 for sale on account to R. T. Loeb, $600. American's cost of this merchandise was $190. Purchased inventory on credit terms of 1/15, n/60 from Grant, Inc., $1,400 Received net amount of cash on account from Fullam Company, $2,156, within the discount period. The invoice, dated July 26 with terms of 2/10, net 30, was in the amount of $2,200. Sold inventory for cash, $330 (cost, $104) Received from Park-Hee, Inc. merchandise that had been sold earlier for $550 (cost, $174) Issued check no. 684 to purchase supplies for cash, $780 Collected interest revenue of $1,100 Issued invoice no. 504 for sale on account to K. D. Skipper, $2,400 (cost, $759) Issued check no. 685 to pay Federal Company $2,600 of the amount owed at July 31. This payment occurred after the discount period. Issued check no. 686 to pay Grant, Inc. the net amount owed from August 3 Received cash from R. T. Loeb in full settlement of her account receivable from August 2 Issued check no. 687 to pay salary expense of $1,240 Received half the July 31 amount receivable from K. D. Skipperafter the end of the discount period Purchased inventory for cash $850, issuing check no. 688 Purchased furniture on credit terms of 3/15, n/60 from Beaver Corporation, $510 Sold inventory on account to Fullam Company, issuing invoice no. 505 for $9,966 (cost, $3,152) Issued check no. 689 to pay utilities, $432 Purchased supplies on credit terms 2/10, n/30 from Federal Company, $180 Returned damaged inventory to company from whom American made the cash purchase on August 19, receiving cash of $850 Granted a sales allowance of $175 to K. D. Skipper Purchased inventory on credit terms 1/10, n/30 from Suncrest Supply, $8,330 Issued check no. 690 to Lester Mednick, owner of the business, for personal withdrawal, $1,700 1 of 3 Accounting 201 Comprehensive Problem (100 Points) Name Requirements: 1. The chart of accounts with account balances as of July 31, 2015 are as follows: General Ledger 101 102 104 105 109 117 140 160 161 201 204 207 220 301 302 400 Cash Accounts Receivable Interest Receivable Inventory Supplies Prepaid Insurance Note Receivable, Long-Term Furniture Accumulated Depreciation Accounts Payable Salary Payable Interest Payable Note Payable, Long-Term Lester Mednick, Capital Lester Mednick, Withdrawals Income Summary $ 8,650 19,560 41,800 2,150 2,200 11,000 37,270 10,550 13,410 930 320 42,000 55,420 401 402 403 410 501 510 513 514 516 517 519 523 Sales Revenue Sales Discounts Sales Returns & Allowances Interest Revenue Cost of Goods Sold Salary Expense Rent Expense Depreciation Expense Insurance Expense Utilities Expense Supplies Expense Interest Expense Accounts Receivable Subsidiary Ledger: Fullam Company, $3,200 R T. Loeb, 0 Park-Hee Inc., 7,590 K.D. Skipper, 8,770 Accounts Payable Subsidiary Ledger: Beaver Corporation $ 0 Federal Company 13,410 Grant, Inc, 0 Suncrest Supply 0 2. Journalize the August transactions in the general journal (page 9). Do not include the explanations. American makes all credit sales on terms of 2/10, n/30 unless otherwise indicated. I have posted the beginning balances to the general ledgers and subsidiary ledgers for you. 3. Post daily to the general ledger. Also post to the accounts receivable subsidiary ledger and the accounts payable subsidiary ledger when appropriate. On August 31 post to the general ledger. 4. Prepare a Trial Balance in the Trial Balance Columns of a Worksheet (Trial Balance, Adjustments, Adjusted Trial Balance, Income Statement, and Balance Sheet headings). Check figure: Trial Balance before any adjusting entries should total $142,516 2 of 3 Accounting 201 Comprehensive Problem (100 Points) 5. Name Bring your partial worksheet to me to check and I will give you the values for your adjusting entries so you can complete the partial worksheet: a. b. c. d. e. f. g. Accrued interest revenue Supplies on hand Prepaid insurance expired Depreciation expense Accrued salary expense Accrued interest expense Inventory on hand 6. Prepare American Meter Company's multi-step Income Statement for the month of August, 2015. 7. Prepare American's classified Balance Sheet at August 31, 2015. 8. Journalize and post the adjusting entries 9. Journalize and post the closing entries 10. Prepare a Post-Closing Trial Balance at August 31, 2015. 11. Balance the total of customer accounts in the accounts receivable subsidiary ledger against the Accounts Receivable balance in the General Ledger. Do the same for the accounts payable subsidiary ledger and Accounts Payable in the General Ledger. 3 of 3 Answer Date 2015 Aug.1 Rent Expenses Cash American Meter Company Descripion 2 Salaries Payable Salaries Expenses Cash 2 Accounts Receivable- R T Loeb Sales Revenue Cost of Goods Sold Inventories Debit $ Credit 1,000 $ 1,000 930 310 1,240 630 630 190 190 3 Inventories Accounts Payable- Grant Inc 1,400 4 Cash Sales Discount Accounts Receivable- Fullam Company 2,156 44 4 Cash Sales revenue Cost of Goods Sold Inventories 5 Sales Return and Allowances Accounts Receivable-Park Hee Inventories Cost of Goods Sold 5 Supplies Cash 1,400 2,200 330 330 104 104 550 550 174 174 780 780 6 Cash Interest Revenue 1,100 7 Accounts Receivable- K D Skipper Sales Revenue 2,400 Cost of Goods Sold Inventories 8 Accounts Payable- Federal Company Cash 11 Accounts Payable- Grant Inc Cash Inventories 12 Cash Sales Discount Accounts Receivable- R T Loeb 1,100 2,400 759 759 2,600 2,600 1,400 1,386 14 617 13 630 16 Salaries Expenses Cash 1,240 19 Cash Accounts Receivable- K D Skipper 4,335 1,240 4,335 19 Inventories Cash 850 22 Furniture Accounts Payable- Beaver Corp. 510 23 Accounts Receivable- Fullam Company Sales Revenue Cost of Goods Sold Inventories 850 510 9,966 9,966 3,152 3,152 25 Utilities Expenses Cash 432 26 Supplies Accounts Payable- Federal Company 180 432 180 30 Cash Inventories 850 30 Sales return and Allowances Accounts Receivable- K D Skipper 175 850 175 31 Inventories Accounts Payable- Suncrest Company 8,330 31 Lester Mednik Withdrawls Cash 1,700 8,330 1,700 49,207 49,207 Cash Be. Bal Aug.4 Aug.4 Aug.6 Aug.12 Aug.19 Aug.30 End bal 101 8650 Aug.1 2156 Aug.2 330 Aug.2 1100 Aug.5 617 Aug.8 4335 Aug.11 850 Aug.16 Aug.19 Aug.25 Aug.31 18038 6810 1000 930 310 780 2600 1386 1240 850 432 1700 11228 Inventory 105 41800 Aug.2 1400 Aug.4 174 Aug.7 850 Aug.11 8330 Aug.23 Aug.30 52554 End bal 47485 Notes Receivable Long Term Beg. Bal 11000 11000 End bal 11000 Beg bal Aug.3 Aug.5 Aug.19 Aug.31 Accounts Payable Aug.31 2600 Beg bal. Aug.31 1400 Aug.31 Aug.31 Aug.31 Aug.31 4000 End bal Rent Expenses Aug.1 1000 Total 1000 Utilities Expenses Aug.25 432 Total 432 Interest Receivable 7890 Supplies 2150 780 180 3110 End bal 3110 109 Furniture Beg. Bal 37270 Aug.22 510 37780 End bal 37780 13410 180 1400 8330 510 23830 19830 220 42000 42000 42000 401 630 330 2400 9966 13326 410 1100 1100 513 517 104 2200 630 550 4510 Prepaid Insurance Beg. Bal 2200 2200 End bal 2200 Beg. Bal Aug.5 Aug.26 201 Aug.2 Aug.4 Aug.7 Aug.23 Total 102 32556 24666 140 End bal Interest Revenue Aug.6 Total End bal 190 104 759 14 3152 850 5069 Notes Payable Long Term Beg. Bal Sales revenue Accounts Receivable Beg. Bal 19560 Aug.31 Aug.31 9966 Aug.31 Aug.31 630 Aug.31 Aug.31 2400 Aug.31 117 0 160 Accumulated Depreciation Beg. Bal 161 10550 10550 10550 End bal Salary Payable 204 Aug.2 930 Beg. Bal 930 End bal Laster Mednick Capital Beg. Bal End bal 930 930 0 301 55420 55420 55420 Interest Payable Beg. Bal Laster Mednick Withdrawl Aug.31 1700 1700 End bal 1700 402 Sales Retirn & Allowances Aug.5 550 Aug.30 175 Total 725 Cost of Goods Sold Aug.2 190 Aug.5 Aug.4 104 Aug.7 759 Aug.23 3152 4205 End bal 4031 501 Salary Expenses Aug.2 310 Aug.16 1240 Total 1550 302 403 510 174 Depreciation Expenses Supplies Expenses 320 320 320 End bal Sales Discounts Aug.4 44 Aug.12 13 Total 57 174 207 514 519 Insurance Expenses Interest Expenses 516 523 Accounts Receivable Subsidiary Ledger Beg bal Aug.23 End bal Beg bal Aug.7 End bal Fullam Company 3200 Aug.4 9966 13166 10966 K D Skipper 8770 Aug.19 2400 Aug.30 11170 6660 2200 Beg. Bal Aug.2 2200 End bal R T Loeb 0 Aug.12 630 630 0 630 Beg. Bal 630 End bal Park- Hee Inc 7590 Aug.5 7590 7040 550 550 4335 175 4510 Accounts Payable Subsidiary Ledger Beaver Corp Beg. Bal Aug.22 0 End bal 0 510 510 510 Suncrest Supply Beg. Bal Aug.31 0 End bal 0 8330 8330 8330 Aug.8 Federal Company 2600 Beg. Bal Aug.26 2600 End bal 13410 180 13590 10990 Aug.11 Grant, Inc 1400 Beg. Bal Aug.3 1400 End bal 0 1400 1400 0 Trial Balance as at August 31, 2015 Debit Cash 6810 Accounts Receivable 24666 Inventory 47485 Supplies 3110 Prepaid Insurance 2200 Notes Receivable, Long term 11000 Furniture 37780 Accumulated Depreciation Accounts Payable Interest Payable Long term Notes Payable Lester Mednick Capital Lester Mednick Withdrawl 1700 Sales revenue Sales Discounts 57 Sales return and Allowances 725 Interest Revenue Cost of Goods Sold 4031 Salary Expenses 1550 Rent Expenses 1000 Utilities Expenses 432 142546 Adjustments Credit 10550 19830 320 42000 55420 13326 1100 142546 Adjusted TB Income Statement Balance e Sheet