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Ready Supply Corporation is a major merchandiser of student supplies located near the University of North Florida. The company carries a wide selection of items

Ready Supply Corporation is a major merchandiser of student supplies located near the University of North Florida. The company carries a wide selection of items to encourage students to shop. Charge accounts are available to students, as well as the company offers cash discounts of 2/10, n/30 to courage prompt payment. Ready Supply Corporation uses the asset approach to record all prepayments, and liability approach to record cash received in advance from customers. Additionally, all sales are marked up 50% of cost. Finally, Ready uses the perpetual method to account for its inventory. The company reported the following beginning balances:

Inventory on hand on December 31, 2003 $3,000

Cash 10,000

Supplies 200

Equipment 15,000

Accumulated Depreciation 3,000

Retained Earnings 5,200

Capital Stock (1,000 shares issued) 20,000

Following are the transactions for the month of January 2004.

Purchased posters from Poster Supply at an invoice price of $10,600 terms were 1/10, n/30, F.O.B. shipping point.

Ready Supply paid the freight of $450.

Purchased $900 of supplies (all selling).

Borrowed $15,000 from the bank at 6% interest on January 1, 2004.

Paid January rent for the building in the amount of $500 (all administrative).

Purchased poster frames from Plastic Products at an invoice price of $5,000, terms 2/10, n/30, F.O.B. destination

Paid $1,600 for six months advertising in the university paper.

Some of the posters from Poster Supply were poorly printed. They were returned for a credit of $400.

Paid the amount owed to Poster Supply (Note: this is within the discount period).

Sold posters costing $5,600 for cash.

Paid $600 in wages to sales clerks and $300 to a part-time office clerk for the month.

Poster sales on account for the first half of the month totaled $4,700 at cost.

Posters that were sold on account costing $200 were returned due to defects.

Received one half of the accounts receivable within the discount period.

Paid a delivery company $150 for deliver of posters during the month to customers.

Received and paid the utility bill for the month $750 (all administrative).

Received the remaining accounts receivable after the discount period.

Cash sales for the second half of the month totaled $4,000 at cost.

Sales on account for the second half of the month totaled $1,000 at cost.

Received $2,250 from a university club for a special order of posters costing $1,500, which has not yet been delivered.

Required for adjustment:

One month of the prepaid advertising was used in January.

Supplies on hand totaled $300.

Salaries accrued (two days) at the end of the period: sales $175, office $120.

The equipment was purchased on January 1, 2003. Use straight- line method for depreciation (5 year life).

Rent was paid for January was used.

At January 31, only $600 of the Denver order was satisfied.

The bank pays interest of 5% on the ending cash balance. The interest earned is reflected on the bank statement the following month.

I need assistance in doing the journal portion of the adjustments

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