PROBLEM 1-7 JHJ ATHLETIC SHOE STORE 2011 LACCOUNTS WITH BALANCES 300,000 CASH 800,000 ACCOUNTS RECEIVABLE 100,000 ALLOWANCE FOR BAD DEBTS ? SHOE INVENTORY 50,000 SUPPLIES 10,000 PREPAID INSURANCE EQUIPMENT 1,000,000 ACCUMLATED DEPRECIATION - EQUIP 300,000 AUTO 100,000 ACCUMULATED DEPRECIATION- AUTO 50,000 ACCOUNTS PAYABLE 80,000 WAGES PAYABLE 10,000 UNEARNED REVENUE 40,000 NOTE PAYABLE JHJ COMMOM STOCK 90,000 RETAINED EARNINGS 500,000 JHJ DIVIDENDS ? SHOE SALES SHOE SALE RETURNS COST OF GOODS SOLD 120 Page PURCHASE RETURNS FREIGHT IN RENT EXPENSE -SELLING SUPPLIES EXPENSE - SELLING INSURANCE EXPENSE - ADMINISTRATIVE DEPRECIATION EXPENSE - ADMINISTRATIVE SALES SALARIES BAD DEBT EXPENSE INTEREST EXPENSE JOURNALIZE THE FOLLOWING TRANSACTIONS 33. INVESTED ADDITIONAL $100.000 IN BUSINESS 34. PAID ACCRUED SALARIES FROM PRIOR YEAR 35. PAID $30,000 FOR SUPPLIES 36. PURCHASED 100,000 PAIRS OF SHOES ON MAY 1 ON ACCOUNT FOR $30 EACH 31. CASH SALES 120,000 PAIRS OF SHOES FOR $50 EACH * 38. PAID SALARIES FOR $ 200,000 39. PURCHASED ON JULY 1ST, 200,000 PAIRS OF SHOES FOR S40 EACH* 40. SOLD ON ACCOUNT ON AUGUST 1ST, 150,000 PAIRS OF SHOES AT S60 EACH 91: PAID S 50,000 IN DIVIDENDS 22. CASH SALES 30,000 PAIRS OF SHOES AT S70 EACH 43. PAID $10,000 ON NOTE PLUS $ 5,000 INTEREST 121 Page $10,000 H. ENDING SUPPLIES ON HAND 45. EQUIPMENT IS DEPRECIATED UTILIZING STRAIGHTLINE METHOD AND HAS 10 YEAR LIFE 46. AUTO IS NOW TWO YEARS OLD AND IS DEPRECIATED UTILIZING DOUBLE-DECLINING BALANCE WITH 4 YEAR LIFE 47. BAD DEBT EXPENSE IS ESTIMATED TO BE 10% OF CREDIT SALES 48. THE COMPANY UTILIZES WEIGHTED AVERAGE IN CALCULATING PERPETUAL INVENTORIES AND BEGINNING INVENTORIES CONSISTED OF: 50,000 PAIRS OF SHOES AT $20 EACH X 40,000 PAIRS OF SHOES AT $25 EACH LA REQUIRED: 19. POST TO LEDGER BALANCES FROM PRIOR YEAR 20. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER 21. PREPARE TRIAL BALANCE 22. PREPARE INCOME STATEMENT 23. PREPARE STATEMENT OF OWNERS EQUITY 24. PREPARE BALANCE SHEET 25. PREPARE CLOSING ENTRIES 26. PREPARE INVENTORY CHART 27. PREPARE STATEMENT OF CASH FLOW OTGA PROBLEM 1-7 JHJ ATHLETIC SHOE STORE 2011 LACCOUNTS WITH BALANCES 300,000 CASH 800,000 ACCOUNTS RECEIVABLE 100,000 ALLOWANCE FOR BAD DEBTS ? SHOE INVENTORY 50,000 SUPPLIES 10,000 PREPAID INSURANCE EQUIPMENT 1,000,000 ACCUMLATED DEPRECIATION - EQUIP 300,000 AUTO 100,000 ACCUMULATED DEPRECIATION- AUTO 50,000 ACCOUNTS PAYABLE 80,000 WAGES PAYABLE 10,000 UNEARNED REVENUE 40,000 NOTE PAYABLE JHJ COMMOM STOCK 90,000 RETAINED EARNINGS 500,000 JHJ DIVIDENDS ? SHOE SALES SHOE SALE RETURNS COST OF GOODS SOLD 120 Page PURCHASE RETURNS FREIGHT IN RENT EXPENSE -SELLING SUPPLIES EXPENSE - SELLING INSURANCE EXPENSE - ADMINISTRATIVE DEPRECIATION EXPENSE - ADMINISTRATIVE SALES SALARIES BAD DEBT EXPENSE INTEREST EXPENSE JOURNALIZE THE FOLLOWING TRANSACTIONS 33. INVESTED ADDITIONAL $100.000 IN BUSINESS 34. PAID ACCRUED SALARIES FROM PRIOR YEAR 35. PAID $30,000 FOR SUPPLIES 36. PURCHASED 100,000 PAIRS OF SHOES ON MAY 1 ON ACCOUNT FOR $30 EACH 31. CASH SALES 120,000 PAIRS OF SHOES FOR $50 EACH * 38. PAID SALARIES FOR $ 200,000 39. PURCHASED ON JULY 1ST, 200,000 PAIRS OF SHOES FOR S40 EACH* 40. SOLD ON ACCOUNT ON AUGUST 1ST, 150,000 PAIRS OF SHOES AT S60 EACH 91: PAID S 50,000 IN DIVIDENDS 22. CASH SALES 30,000 PAIRS OF SHOES AT S70 EACH 43. PAID $10,000 ON NOTE PLUS $ 5,000 INTEREST 121 Page $10,000 H. ENDING SUPPLIES ON HAND 45. EQUIPMENT IS DEPRECIATED UTILIZING STRAIGHTLINE METHOD AND HAS 10 YEAR LIFE 46. AUTO IS NOW TWO YEARS OLD AND IS DEPRECIATED UTILIZING DOUBLE-DECLINING BALANCE WITH 4 YEAR LIFE 47. BAD DEBT EXPENSE IS ESTIMATED TO BE 10% OF CREDIT SALES 48. THE COMPANY UTILIZES WEIGHTED AVERAGE IN CALCULATING PERPETUAL INVENTORIES AND BEGINNING INVENTORIES CONSISTED OF: 50,000 PAIRS OF SHOES AT $20 EACH X 40,000 PAIRS OF SHOES AT $25 EACH LA REQUIRED: 19. POST TO LEDGER BALANCES FROM PRIOR YEAR 20. PREPARE JOURNAL ENTRIES AND POST ALL ENTRIES TO LEDGER 21. PREPARE TRIAL BALANCE 22. PREPARE INCOME STATEMENT 23. PREPARE STATEMENT OF OWNERS EQUITY 24. PREPARE BALANCE SHEET 25. PREPARE CLOSING ENTRIES 26. PREPARE INVENTORY CHART 27. PREPARE STATEMENT OF CASH FLOW OTGA