Prepare a trial balance as at March 31. PRONGHORN FURNITURE LIMITED Trial Balance $ Debit Credit
Prepare a trial balance as at March 31. Pronghorn Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 Received $135,000 on account from a major customer. 2 Paid a supplier an amount owing of $216,000, taking the full discount, terms 2/10,n/30. 5 Purchased merchandise from a supplier, $324,000, terms 2/10,N/30, FOB destination. 6 Recorded cash sales, $307,800. The cost of goods sold for these sales was $216,000. No returns were anticipated related to this sale. 7 Returned scratched merchandise to the supplier from the March 5 purchase, $27,000. 8 The appropriate company paid freight for the March 5 purchase, $8,100. 9 Sold $216,000 of merchandise on account, terms n/30, FOB destination. The cost of goods sold was $151,200, Management estimated that sales returns will be 12% of sales. 9. The appropriate company paid freight for the March 9 sale, $5,400. 12 Ordered custom merchandise for a locat designer totalling $54,000. Received $13,500 as an advance payment. 13 Accepted returned merchandise from the sale on March 9,$21,600. The cost of the goods returned to inventory was $15,120. Pronghorn Furniture incurred the following transactions for the month of March. The company uses a perpetual inventory system. Mar. 1 Received $135,000 on account from a major customer. 2. Paid a supplier an amount owing of $216,000, taking the full discount, terms 2/10,n/30. 5 Purchased merchandise from a supplier, $324,000, terms 2/10,n/30, FOB destination. 6 Recorded cash sales, $307,800. The cost of goods sold for these sales was $216,000. No returns were anticipated related to this sale. 7 Returned scratched merchandise to the supplier from the March 5 purchase, $27,000. 8 The appropriate company paid freight for the March 5 purchase, $8,100. 9 Sold $216,000 of merchandise on account terms n/30,FOB destination. The cost of goods sold was $151,200. Management estimated that sales returns will be 1296 of sales. 9 The appropriate company paid freight for the March 9 sale, $5,400. 12 Ordered custom merchandise for a local designer totalling $54,000. Received $13,500 as an advance payment. 13 Accepted returned merchandise from the sale on March 9,\$21,600. The cost of the goods returned to inventory was $15,120. 13. Accepted returned merchandise from the sale on March 9, \$21,600. The cost of the goods returned to inventory was $15,120. 14 Paid for the merchandise purchased on March 5 , net of merchandise returns on March 7. 16. Paidsalaries of $48,600. 20 - Recorded cash sales, $275,400. The cost of goods sold for these sales was $193,320. Na returns were anticipated related to these sales. 27 Paidsalaries, $54,000. 29 Received payment of merchandise sold on March 9, net of merchandise returns on March 13. 30 Paid rent, $5,400. Adjustment and additional data: 1. Accrued $10,800 for utilities, $10,800 for salaries, and $9,720 for interest on the bank loan. 2. Recorded depreciation on equipment, which has an expected useful life of 10 years. 3. Recorded an additional $54,000 of income tax payable. Adjustment and additional data: 1. Accrued $10,800 for utilities, $10,800 for salaries, and $9,720 for interest on the bank loan. 2. Recorded depreciation on equipment, which has an expected useful life of 10 years. 3. Recorded an additional $54,000 of income tax payable. 4. Common shares were issued during the year for $1,080. 5. $48,600 of the bank loan is due to be repaid in the next year
