Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Old MathJax webview accounting 300 Olaf distribution Olaf Distribution adjusts its books every quarter. The below balances exist as of April Interest Payable Interest Revenue
Old MathJax webview
accounting 300 Olaf distribution
Olaf Distribution adjusts its books every quarter. The below balances exist as of April Interest Payable Interest Revenue Merchandise Inventory Notes Payable Office Salaries Expense Prepaid Insurance Retained Earnings $ 8,000 4,000 75,000 80,000 32,000 2,400 84,000 Accounts Payable Accounts Receivable Accumulated Depr. - Building Accumulated Depr. - Equipment Building Cash Common Stock Cost of Goods Sold Depr. Expense - Building Depr. Expense - Equipment Dividends (Withdrawals) Equipment Insurance Expense Interest Expense $ 79,300 50,300 52,500 42,900 190,000 23,800 92,600 412,700 10,400 13,300 28,000 110,000 7,200 11,000 Sales 628,000 Sales Discounts 14,500 Salaries Payable 4,300 Sales Returns and Allowances 8,000 Utilities Expense 12,000 Sales Salaries Expense 76,000 Utilities Expense Payable 1,000 During May, Olaf Distribution completed the following merchandising transactions. May 1 2. 5 9 10 17 Sold merchandise on account $4,500, terms 2/10, n/30. The cost of the merchandise sold was $3,200. Purchased merchandise on account from Dakota Supply Co. $5,900, terms 2/10, n/30. Received credit from Dakota Supply for merchandise returned $500 Paid the amount owed to Dakota Supply Received collections on amount owed from customers billed on May 1. Purchased merchandise from Skywalker Distributors $3,500, FOB shipping point, terms 1/15, n/30 Paid freight on May 17 purchase $100 Sold merchandise for cash $5,600. The merchandise sold had a cost of $3,500 Purchases merchandise for cash, $2,300 Paid amount owed to Skywalker Distributors Made refunds to cash customers for defective merchandise $900. The returned merchandise had a cost of $300. 19 24 25 27 29 b) Journalize the May transactions in the journal. c) Post the May transactions to the T-accounts. d) Prepare a Trial Balance e) Prepare a Multiple-Step Income Statement and a Statement of Owner's Equity for the 5 months ended May 31 (there are no AJEs in for May). Prepare a classified balance sheet as of May 31 ($20,000 of the Notes Payable are due in the upcoming year). f) Prepare the closing entries g) Post the closing entries h) Prepare a post-closing Trial Balance a) Open Taccounts with the April 30th balances as beginning amountsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started