Processing Accounting intormation O Cambrioge Business Pu Chapter 2 SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 a In September 2019, Kate incorporated Kate's Cards after investigating differemt orpanueational fom and began the process of getting the month of September 2019: SP2. her business up and running. The following evems occurred dunor I. Kate deposited $10,000 that she had saved into a newly opennd business checkang acoou S received common stock in exchange. 2. Kate designed a brochure that she will usc to promote her greeting cards at iocal stationory sione 3. Kate paid Fred Simmons $50 to critique her brochure befone undertaiking printing. 4. Kate purchased a new iMac printer for the company same cquipment account. 5. Kate purchased supplies such as paper and ink for $350 at the lacal business account with the store and was granted 30 days credit on all purchases, inciuding the oe she just made 6. Kate designed her first 5 cards and prepared to show them to potential customers. 7. The owner of the stationery store where Kate opened her account was impressed with Kate's wo and ordered 1,000 of each of the five card designs at a cost of $1 per card. or 55.000 toa tells the customer that she will have them printed and delivered within the 8. Kate purchased 9. Kate delivered the 5,000 cards. Because the owner knows that Kate is just starting out. he pait her immediately in cash. He informed her that f the cards sell well thut ihe will be ondering mone bu would expect a 30-day credit The cost to Kate for the order her final design and and commencia computer tablet . paying $4,800 in cash. She decided to record all of these items under the specialized graphic arts softwane stationery stone. She opened a Kate weck additional supplies, on account, in the amount of $1.500. period like the one he prants to his own business was $1,750 uf the supplies she had purchased. customens. - (Hint This cost shouid 10. be recorded as a debit to an expense called Cost of Goods Kate paid her balance due for the supplies in full. Kate purchased a one-year insurance Two accounts will nced to be debited here, ome for the current month expense and one for the Sold.) 11. 12. policy for $1200. paying the entire amount in cash. (Hir prepaid 13. Kate determined that all of ber equipment will have a useful life of 4 years (48 months) at which time it will not have any resale or scrap value. (Hins: equipment each month to Depreciation Expense. The credit will be to Accumulated Depreciation 14. Kate paid herself a salary of $1,000 for the month. amount.) Kate will expense 1/48th f the cost of the 15. Kate paid rent expense for the month in the armount of $1,200. Required a. Prepare a general ledger with the following accounts: Cash: Accounts Receivable: ventory: Prepaid Stock: Retained Earnings; Sales Revenue; Cost of Goods Sold: Consulting Expense; above transactions using these accounts. Supplies in- Insurance: Equipment; Accumulated Depreciation: Acoounts Payatie: Common Expense: Insurane Wages Expense: Rent Expense. Prepare journal emries for the Depreciation Expense Post the T-accounts. accounting transactions for the month of September 2019 to the general ledger Prepare a trial balance for Kate's Cards as of September 30, 2019. c. YOUR KNOWLEDGE EPORTING AND ANALYSIS K2-1. Financial Reporting Problem: Columbia Sportswear Company the Columbia Sportswear Company following selected accounts, in thousands, are The financial statemets for can be found in Appendix A at the end of this book from those statements The Processing Accounting intormation O Cambrioge Business Pu Chapter 2 SERIAL PROBLEM: KATE'S CARDS (Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1 a In September 2019, Kate incorporated Kate's Cards after investigating differemt orpanueational fom and began the process of getting the month of September 2019: SP2. her business up and running. The following evems occurred dunor I. Kate deposited $10,000 that she had saved into a newly opennd business checkang acoou S received common stock in exchange. 2. Kate designed a brochure that she will usc to promote her greeting cards at iocal stationory sione 3. Kate paid Fred Simmons $50 to critique her brochure befone undertaiking printing. 4. Kate purchased a new iMac printer for the company same cquipment account. 5. Kate purchased supplies such as paper and ink for $350 at the lacal business account with the store and was granted 30 days credit on all purchases, inciuding the oe she just made 6. Kate designed her first 5 cards and prepared to show them to potential customers. 7. The owner of the stationery store where Kate opened her account was impressed with Kate's wo and ordered 1,000 of each of the five card designs at a cost of $1 per card. or 55.000 toa tells the customer that she will have them printed and delivered within the 8. Kate purchased 9. Kate delivered the 5,000 cards. Because the owner knows that Kate is just starting out. he pait her immediately in cash. He informed her that f the cards sell well thut ihe will be ondering mone bu would expect a 30-day credit The cost to Kate for the order her final design and and commencia computer tablet . paying $4,800 in cash. She decided to record all of these items under the specialized graphic arts softwane stationery stone. She opened a Kate weck additional supplies, on account, in the amount of $1.500. period like the one he prants to his own business was $1,750 uf the supplies she had purchased. customens. - (Hint This cost shouid 10. be recorded as a debit to an expense called Cost of Goods Kate paid her balance due for the supplies in full. Kate purchased a one-year insurance Two accounts will nced to be debited here, ome for the current month expense and one for the Sold.) 11. 12. policy for $1200. paying the entire amount in cash. (Hir prepaid 13. Kate determined that all of ber equipment will have a useful life of 4 years (48 months) at which time it will not have any resale or scrap value. (Hins: equipment each month to Depreciation Expense. The credit will be to Accumulated Depreciation 14. Kate paid herself a salary of $1,000 for the month. amount.) Kate will expense 1/48th f the cost of the 15. Kate paid rent expense for the month in the armount of $1,200. Required a. Prepare a general ledger with the following accounts: Cash: Accounts Receivable: ventory: Prepaid Stock: Retained Earnings; Sales Revenue; Cost of Goods Sold: Consulting Expense; above transactions using these accounts. Supplies in- Insurance: Equipment; Accumulated Depreciation: Acoounts Payatie: Common Expense: Insurane Wages Expense: Rent Expense. Prepare journal emries for the Depreciation Expense Post the T-accounts. accounting transactions for the month of September 2019 to the general ledger Prepare a trial balance for Kate's Cards as of September 30, 2019. c. YOUR KNOWLEDGE EPORTING AND ANALYSIS K2-1. Financial Reporting Problem: Columbia Sportswear Company the Columbia Sportswear Company following selected accounts, in thousands, are The financial statemets for can be found in Appendix A at the end of this book from those statements The