please only answer if you can fully answer a,b,c. Thanks
It is March 1, 2015, the first business day of the month, and you have just been hired as the accountant for Holden Corp., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Holden Corp. sells one product. All of the company's accounting work has been completed through the end of February, 2015. Holden Corp.'s year end is March 31. The post-closing alphabetized trial balance at February 28, 2015 follows. Holden Corp. Post-Closing Trial Balance February 28, 2015 Accounts receivable 1 Accounts payable 2 Accumulated depreciation, store equipment. Allowance for doubtful accounts Cash Common shares 3 Interest receivable 4 Merchandise inventory 5 Notes receivable 4 6 Prepaid advertising Retained earnings Store equipment 7 Utilities payable Totals Debit Credit 183,400 417,000 49,259 36,680 992, 119 78,000 190 1,520,000 76,000 39,000 2,295,220 79,450 14,000 2,890,159 2,890,159 1 See the Accounts Receivable Subledger below for details regarding customer balances. 2See the Accounts Payable Subledger below for details regarding creditor balances. 3There are an unlimited number of shares authorized with 10,000 shares issued and outstanding as at February 28, 2015. 4This is a 6% note due February 15, 2018 with interest collectible on the 15th of each month. Refer to the collection schedule below for the note details. Values in schedule have been rounded for convenience. 5 See the Merchandise Inventory Subledger below for details of inventory holdings The balance in Prepaid Advertising represents payment for 6 months starting March 1, 2015. 7See the Property, Plant and Equipment Subledger below for detailed information. You have determined that Holden Corp. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $210 per unit. The following source documents are from March Inter-Office Memo 18 Inter-Office Memo 19 Invoice 1070 Inter-Office Memo 11 Deposit slip (March 10) Inter-Office Memo 15 Receipt 1802 CM161 O Inter-Office Memo 16 Invoice 6028 Invoice 6029 0 Inter-Office Memo 17 Inter-Office Memo 12 Inter-Office Memo 13 Deposit slip (March 22) Invoice 1448 Deposit slip (March 15) Invoice 1672 Invoice 1631 Inter-Office Memo 14 Invoice 6030 Inter-Office Memo 20 Inter-Office Memo 21 For all parts of the Case Study, round all calculations to two decimal places unless otherwise specified. a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). F General Journal Date Account/Explanation 1/Mar Rent expense, selling space + Rent expense, office space. Cash C1808: Create for rent Page Gj1 Debit Credit 2,000 3,000 5,000 General Journal Account/Explanation Page GJ2 Credit F Debit Date 19/Mar a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). F Page Gj1 Debit Credit 2,000 3,000 5,000 General Journal Account/Explanation Page GJ2 Credit F Debit Date 19/Mar General Journal Date Account/Explanation 1/Mar Rent expense, selling space + - Rent expense, office space. Cash C1808: Create for rent 4/Mar Cash Store Equipment R1802: all Equipment sold to United Corporation 5/Mar Accounts Receivable, Barton Corporation... + - Merchandise Inventory.. 16028: Sold Inventory to Barton 2/10, n/30 30.000 30,000 19/Mar + = AR 399,000 MI 1,543,500 1,543,500 790,000 399,000 22/Mar Cash + - Accounts Receivable, Barton Corporation AR 8,340 16029 408,660 23/Mar Merchandise Inventory + - Accounts Payable, ABC Inc. AP 11672: bought merchandise inventory from ABC Inc, 2/10, n/30 26/Mar Merchandise Inventory.. 632,000 + -1 Accounts Receivable, Segura Corporation AR 790,000 417,000 632,000 840,000 840,000 10,500 27/Mar 6/Mar Cash + - Sales Discounts Accounts Payable, ABC Inc. AP 11809: Paid with deposit slip 9/Mar Merchandise Inventory. + Accounts Payable, Allarco Inc.. AP 11448: Bought inventory from Allarco Inc 1/5, n/19 10/Mar Office Furniture, Accounts Payable, Zcom Inc. AP 11631: Bought office furniture from Zcom Inc., n/15 10/Mar Cash Accounts Receivable, Barton Corporation AR paid with deposit slip from Barton 13/Mar Accounts Payable, Zcom Inc.. AP Office Furniture 11631: Return office furniture due to defects 2 10,500 C1814 for February ultilities 27/Mar + = 391,020 391,020 399,500 2,100 AP 399,500 2,100 28/Mar Merchandise Inventory. + Accounts Payable, Gulf Corp. 11070: bought merchandise from Gulf Corp. 1/15, n/30 29/Mar 1,575,000 13/Mar Merchandise Inventory. + - Accounts Receivable, Barton Corporation AR 16029: bought merchandise inventory from Barton Corp, 2/10, n/30 1,575,000 45,000 24,000 31/Mar Cash + - Office Salaries Expense. Sales Salaries Expense, 11816 for office salaries 35,000 10,000 24,000 15/Mar Cash. + = Common Shares 1022: Issue 12,000 shares @ 2 15/Mar Cash + - Notes Receivable, 2,312 + 2,312 b) Posting: Posting from the general journal into the subledgers is required. Posting in the general ledger is not required. The subledgers used in this case study are Accounts Receivable (AR), Accounts Payable (AP), Merchandise Inventory(MI), and Property, Plant and Equipment (PPE). The subledgers can be found below. Transactions affecting the subledgers must be posted by using the subledger abbreviations AR, AP, MI, and PPE in the folio (F) column. For transactions that do not affect one of these subledgers, leave the F column blank. The posting reference to be used in the subledgers will be the abbreviation for the general journal (GJ1 or GJ2 as appropriate). Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). *All cost/unit calculations should be rounded to two decimal places. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Balance in Inventory Date PR Units Cost/Unit* Total $ Units Cost/Unit* Total $ Units AvgCost/Unit* Total $ February 28 BFWD 19,000 80 1,520,000 19,000 80 1,520,000 March 5 March 9 March 13 March 23 March 26 March 27 March 28 Holden Corp. Accounts Receivable Subledger Acct. #10603; Barton Corporation Acct. #10610; Segura Corporation Date Desc. F Debit Credit Balance Date Desc. F Debit Credit Balance Period Ending Collection Principal Interest Balance February 15, 2015 76,000 March 15, 2015 2,312 1,932 380 74,068 April 15, 2015 2,312 1,942 370 72,126 May 15, 2015 2,312 1,951 361 70,175 June 15, 2015 2,312 1,961 351 68,214 July 15, 2015 2,312 1,971 341 66,243 August 15, 2015 2,312 1,981 331 64,262 September 15, 2015 2,312 321 62,271 October 15, 2015. 2,312 2,001 311 60,270 November 15, 2015 2,312 2,011 301 58,259 December 15, 2015... 2,312 291 56,238 January 15, 2016 2,312 2,031 281 54,207 February 15, 2016 2,312 2,041 271 52,166 March 15, 2016 2,312 2,051 261 50,115 1,991 Acct. #10611; XYZ Corporation Date Desc. F Debit Credit Balance 1/ Mar Terms 2/10, n/30 BFWD 183,400 183,400 2,021 Holden Corp. Accounts Payable Subledger Acct. #20105; ABC Inc. Acct. #20108; Allarco Inc. Date Desc F Debit Credit Balance Date Desc. F Debit Credit Balance 1/Mar Terms 2/10, n/30BFWD 417,000 417,000 December 15, 2017 January 15, 2018 February 15, 2018 2,312 2,312 2,312 83,232 2,278 34 2,289 23 2.300 12 76,000 7,232 4,589 2,300 0 Holden Corp Accounts Payable Subledger Acct. #20105; ABC Inc. Acct. #20108; Allarco Inc Desc F Debit Credit Balance Date Desc. F Debit Credit Balance 1/ Mar Terms 2/10, n/30BFWD 417,000 417,000 December 15, 2017 January 15, 2018 February 15, 2018 2,312 2,312 2,312 83,232 2,278 34 2.289 23 2,300 12 76,000 7,232 4,589 2,300 0 Date Acct. #20106, Zcom Inc. Date Desc. F Debit Credit Balance Acct. #20109, Gulf Corp. Date Desc. F Debit Credit Balance Property, Plant and Equipment Subledger Cost Information Depreciation Desc. F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal., Depr. Exp, March, Accum. Depr. Bal., February 28, 2015 2015 March 31, 2015 Store Equipment BFWD Apr 5, 2013 Double-Declining 79,450 9,000 5 49,259 Office Furniture Mar 10, 2015 (Select One) 2 Notes: 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the number of months the asset was used in that fiscal year to get the depreciation per month. Round final values to the nearest whole dollar. ? c) What is the next step in the accounting cycle? O Prepare an unadjusted trial balance O Prepare bank reconciliation and adjusting entries O Post closing entries O Post adjusting entries O Post transactions O Prepare a post-closing trial balance O This is the last step O Prepare an adjusted trial balance O Prepare financial statements O Prepare closing entries It is March 1, 2015, the first business day of the month, and you have just been hired as the accountant for Holden Corp., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Holden Corp. sells one product. All of the company's accounting work has been completed through the end of February, 2015. Holden Corp.'s year end is March 31. The post-closing alphabetized trial balance at February 28, 2015 follows. Holden Corp. Post-Closing Trial Balance February 28, 2015 Accounts receivable 1 Accounts payable 2 Accumulated depreciation, store equipment. Allowance for doubtful accounts Cash Common shares 3 Interest receivable 4 Merchandise inventory 5 Notes receivable 4 6 Prepaid advertising Retained earnings Store equipment 7 Utilities payable Totals Debit Credit 183,400 417,000 49,259 36,680 992, 119 78,000 190 1,520,000 76,000 39,000 2,295,220 79,450 14,000 2,890,159 2,890,159 1 See the Accounts Receivable Subledger below for details regarding customer balances. 2See the Accounts Payable Subledger below for details regarding creditor balances. 3There are an unlimited number of shares authorized with 10,000 shares issued and outstanding as at February 28, 2015. 4This is a 6% note due February 15, 2018 with interest collectible on the 15th of each month. Refer to the collection schedule below for the note details. Values in schedule have been rounded for convenience. 5 See the Merchandise Inventory Subledger below for details of inventory holdings The balance in Prepaid Advertising represents payment for 6 months starting March 1, 2015. 7See the Property, Plant and Equipment Subledger below for detailed information. You have determined that Holden Corp. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $210 per unit. The following source documents are from March Inter-Office Memo 18 Inter-Office Memo 19 Invoice 1070 Inter-Office Memo 11 Deposit slip (March 10) Inter-Office Memo 15 Receipt 1802 CM161 O Inter-Office Memo 16 Invoice 6028 Invoice 6029 0 Inter-Office Memo 17 Inter-Office Memo 12 Inter-Office Memo 13 Deposit slip (March 22) Invoice 1448 Deposit slip (March 15) Invoice 1672 Invoice 1631 Inter-Office Memo 14 Invoice 6030 Inter-Office Memo 20 Inter-Office Memo 21 For all parts of the Case Study, round all calculations to two decimal places unless otherwise specified. a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). F General Journal Date Account/Explanation 1/Mar Rent expense, selling space + Rent expense, office space. Cash C1808: Create for rent Page Gj1 Debit Credit 2,000 3,000 5,000 General Journal Account/Explanation Page GJ2 Credit F Debit Date 19/Mar a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance as well as the tables and subledgers below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). F Page Gj1 Debit Credit 2,000 3,000 5,000 General Journal Account/Explanation Page GJ2 Credit F Debit Date 19/Mar General Journal Date Account/Explanation 1/Mar Rent expense, selling space + - Rent expense, office space. Cash C1808: Create for rent 4/Mar Cash Store Equipment R1802: all Equipment sold to United Corporation 5/Mar Accounts Receivable, Barton Corporation... + - Merchandise Inventory.. 16028: Sold Inventory to Barton 2/10, n/30 30.000 30,000 19/Mar + = AR 399,000 MI 1,543,500 1,543,500 790,000 399,000 22/Mar Cash + - Accounts Receivable, Barton Corporation AR 8,340 16029 408,660 23/Mar Merchandise Inventory + - Accounts Payable, ABC Inc. AP 11672: bought merchandise inventory from ABC Inc, 2/10, n/30 26/Mar Merchandise Inventory.. 632,000 + -1 Accounts Receivable, Segura Corporation AR 790,000 417,000 632,000 840,000 840,000 10,500 27/Mar 6/Mar Cash + - Sales Discounts Accounts Payable, ABC Inc. AP 11809: Paid with deposit slip 9/Mar Merchandise Inventory. + Accounts Payable, Allarco Inc.. AP 11448: Bought inventory from Allarco Inc 1/5, n/19 10/Mar Office Furniture, Accounts Payable, Zcom Inc. AP 11631: Bought office furniture from Zcom Inc., n/15 10/Mar Cash Accounts Receivable, Barton Corporation AR paid with deposit slip from Barton 13/Mar Accounts Payable, Zcom Inc.. AP Office Furniture 11631: Return office furniture due to defects 2 10,500 C1814 for February ultilities 27/Mar + = 391,020 391,020 399,500 2,100 AP 399,500 2,100 28/Mar Merchandise Inventory. + Accounts Payable, Gulf Corp. 11070: bought merchandise from Gulf Corp. 1/15, n/30 29/Mar 1,575,000 13/Mar Merchandise Inventory. + - Accounts Receivable, Barton Corporation AR 16029: bought merchandise inventory from Barton Corp, 2/10, n/30 1,575,000 45,000 24,000 31/Mar Cash + - Office Salaries Expense. Sales Salaries Expense, 11816 for office salaries 35,000 10,000 24,000 15/Mar Cash. + = Common Shares 1022: Issue 12,000 shares @ 2 15/Mar Cash + - Notes Receivable, 2,312 + 2,312 b) Posting: Posting from the general journal into the subledgers is required. Posting in the general ledger is not required. The subledgers used in this case study are Accounts Receivable (AR), Accounts Payable (AP), Merchandise Inventory(MI), and Property, Plant and Equipment (PPE). The subledgers can be found below. Transactions affecting the subledgers must be posted by using the subledger abbreviations AR, AP, MI, and PPE in the folio (F) column. For transactions that do not affect one of these subledgers, leave the F column blank. The posting reference to be used in the subledgers will be the abbreviation for the general journal (GJ1 or GJ2 as appropriate). Merchandise Inventory Subledger (Acct. #119) (Note: Recalculate the Balance in Inventory's AvgCost/Unit after each transaction.). *All cost/unit calculations should be rounded to two decimal places. Purchases/Transportation-In/ Cost of Goods Sold/ (Purchase Returns/Discounts) (Returns to Inventory) Balance in Inventory Date PR Units Cost/Unit* Total $ Units Cost/Unit* Total $ Units AvgCost/Unit* Total $ February 28 BFWD 19,000 80 1,520,000 19,000 80 1,520,000 March 5 March 9 March 13 March 23 March 26 March 27 March 28 Holden Corp. Accounts Receivable Subledger Acct. #10603; Barton Corporation Acct. #10610; Segura Corporation Date Desc. F Debit Credit Balance Date Desc. F Debit Credit Balance Period Ending Collection Principal Interest Balance February 15, 2015 76,000 March 15, 2015 2,312 1,932 380 74,068 April 15, 2015 2,312 1,942 370 72,126 May 15, 2015 2,312 1,951 361 70,175 June 15, 2015 2,312 1,961 351 68,214 July 15, 2015 2,312 1,971 341 66,243 August 15, 2015 2,312 1,981 331 64,262 September 15, 2015 2,312 321 62,271 October 15, 2015. 2,312 2,001 311 60,270 November 15, 2015 2,312 2,011 301 58,259 December 15, 2015... 2,312 291 56,238 January 15, 2016 2,312 2,031 281 54,207 February 15, 2016 2,312 2,041 271 52,166 March 15, 2016 2,312 2,051 261 50,115 1,991 Acct. #10611; XYZ Corporation Date Desc. F Debit Credit Balance 1/ Mar Terms 2/10, n/30 BFWD 183,400 183,400 2,021 Holden Corp. Accounts Payable Subledger Acct. #20105; ABC Inc. Acct. #20108; Allarco Inc. Date Desc F Debit Credit Balance Date Desc. F Debit Credit Balance 1/Mar Terms 2/10, n/30BFWD 417,000 417,000 December 15, 2017 January 15, 2018 February 15, 2018 2,312 2,312 2,312 83,232 2,278 34 2,289 23 2.300 12 76,000 7,232 4,589 2,300 0 Holden Corp Accounts Payable Subledger Acct. #20105; ABC Inc. Acct. #20108; Allarco Inc Desc F Debit Credit Balance Date Desc. F Debit Credit Balance 1/ Mar Terms 2/10, n/30BFWD 417,000 417,000 December 15, 2017 January 15, 2018 February 15, 2018 2,312 2,312 2,312 83,232 2,278 34 2.289 23 2,300 12 76,000 7,232 4,589 2,300 0 Date Acct. #20106, Zcom Inc. Date Desc. F Debit Credit Balance Acct. #20109, Gulf Corp. Date Desc. F Debit Credit Balance Property, Plant and Equipment Subledger Cost Information Depreciation Desc. F Purch. Date Depr. Method Cost Residual Life Accum. Depr. Bal., Depr. Exp, March, Accum. Depr. Bal., February 28, 2015 2015 March 31, 2015 Store Equipment BFWD Apr 5, 2013 Double-Declining 79,450 9,000 5 49,259 Office Furniture Mar 10, 2015 (Select One) 2 Notes: 1. Calculated to the nearest whole month for partial periods. 2. For Double-Declining-Balance, depreciation is calculated for the fiscal year and then divided by the number of months the asset was used in that fiscal year to get the depreciation per month. Round final values to the nearest whole dollar. ? c) What is the next step in the accounting cycle? O Prepare an unadjusted trial balance O Prepare bank reconciliation and adjusting entries O Post closing entries O Post adjusting entries O Post transactions O Prepare a post-closing trial balance O This is the last step O Prepare an adjusted trial balance O Prepare financial statements O Prepare closing entries
