Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

REQUIRED: General Journal, Lefger, Trial Balance, Income Stat, Balance Sheet, Analysis College Coasters is a San Diego - based merchandiser specializing in logo - adomed

REQUIRED: General Journal, Lefger, Trial Balance, Income Stat, Balance Sheet, Analysis
College Coasters is a San Diego-based merchandiser specializing in logo-adomed drink coasters. The company reported the following balances in its unadjusted trial balance at December 1.
\table[[Cash,8,400],[Accounts Receivable,1,920],[Inventory,450],[Prepaid Rent,600],[Equipment,850],[Accumulated Depreciation,90],[Accounts Payable,1,440],[Salaries and Wages Payable,200],[Income Taxes Payable,0],[Common Stock,5,500],[Retained Earnings,2,500],[Sales Revenue,15,510],[Cost of Goods Sold,8,630],[Rent Expense,1,100],[Salaries and Wages Expense,1,800],[Depreciation Expense,90],[Income Tax Expense,1,400],[Office Expense,]]
The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 900 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method.
During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below.
a. Purchased 400 coasters on account from the regular supplier on 121 at a unit cost of $0.52, with terms of n60.
b. Purchased 1,000 coasters on account from the regular supplier on 122 at a unit cost of $0.55, with terms of n60.
c. Sold 1,900 coasters on account on 123 at a unit price of $1.10.
d. Collected $870 from customers on account on 124.
e. Paid the supplier $1,310 cash on account on 1218.
f. Paid employees $480 on 1223, of which $260 related to work done in November and $220 was for wages up to December 22.
g. Loaded 90 coasters on a cargo ship on 1231 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n60.
Other relevant information includes the following at 1231
h. College Coasters has not yet recorded $190 of office expenses incurred in December on account.
i. The company estimates that the equipment depreciates at a rate of $10 per month. One month of depreciation needs to be recorded.
j. Wages for the period from December 23-31 are $100 and will be paid on January 15.
k. The $600 of Prepaid Rent relates to a six-month period ending on May 31 of next year.
L. The company incurred $800 of income tax but has made no tax payments this year,
m. No shrinkage or damage was discovered when the inventory was counted on December 31.
n. The company did not declare dividends and there were no transactions involving common stock.
Requirement
General
General
Trial Balance
Income
Statement
Balance Sheet
Analysis
General Journal tab - Prepare the journal entries to record the transactlons (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs.
General Ledger tab - Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances in the General Ledger.
Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the dropdown.
Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. The unadjusted, adjusted, or post-closing balances will appear for each account based on your selection.
Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. The unadjusted, adjusted, or post-dosing balances will appear for each account, based on your selection.
Analysis tab - Calculate to one decimal place the inventory turnover ratio and days to sell in 'Analysis Tab.'
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions