SINTES A tomowe Otoyage wory A we will be und May hehende ohh header the 11 LI Current 5:30 21.00 01-10 11 33 MAY XOLANKSTATIMINI Howed Photo >> Journey and pola Secondary 30, 2018 Perry Proyectory2018 SP diagnosty2018-2018 rother de Show 2018 The court The S8 410 10 They De STI 3 1 GAS 51 17 SHO MAT.000 Wrote the Law of 14.00 TO el 20 The 3 Prof.000,00 Pedford 45.10 . LO 12 13 Twoface 11 DuratatIs . Perth 11 Pedometer With 5.2.2015 A od utdepot SLO civil Windo 22 21 20 Earlier segments of this problem have described how Aster Turane created Aster Systems on October 1, 2017. Aster has continued to operate his company throughout May using a perpetual inventory system and moving weighted average costing method Aster went about his business as usual but started calling his customers regularly to remind them to pay their bills. He believes that the longer the receivable, the more unlikely he will not be getting paid. At the end of May, his accountant has advised him that he should change his year end in order to take advantage of a discount by the accounting firm outside of his busy season, which he does to May 30. His accountant has also advised him to be sure to adjust for bad debts after their conversation about the receivables. Aster has determined the following chart as the bad debts expense Current - 0.75% 1-30 days overdue - 2% 31 - 80 days overdue - 5% 61+ days overdue - 10% Required: 1) Prepare the costing chart using the MWA method for May. 2) Prepare the Journal Entries for May and post them to the correct ledger 3) Reconcile the bank account for May 30, 2018. Prepare the necessary journal entries. 4) Prepare the necessary adjusting entries for May 30, 2018. Including the receivables adjustment 5) Prepare an adjusted trial balance. 6) Prepare a Multi-step Income Statement for January 1, 2018 - May 30, 2018. 7) Close the temporary accounts and post them to the ledger 8) Prepare a Classified Balance Sheet as of May 30, 2018 The account 108 has been created for allowance of doubtful accounts. The account 895 has been created for bad debt expense. May1 Aster Turane injected $4,000 cash into the business. Deposit 5. Wrote a cheque to Ledcor for balance of $14,000. Cheque 9. Sold 175 units of merchandise with a retail value of $11,000 to Kinsetta Groceries with terms of 1/10, n/30, FOB shipping point Purchased 150 pieces of inventory from Ledcor for 56,000 with terms of 1/10,n30, FOB shipping point 6 Paid D. Gee for 4 days work at $345 per day. Cheque 10. Kinsetta paid their balance. Deposit 6 Took advantage of a cash sale on merchandise. Purchased 240 units @ $22.00 each. 10 Cheque 11 12 Donated another $120 to the local animal rescue charity. Cheque 12. 13 Paid Ledcor their balance. Cheque 13. Paid for a computer meltdown and repaired entire office for 53,800. Cheque 14 22 Withdrew $2,200 cash. Cheque 15. Allready Goods put a deposit down of $3,000 for a job to be completed. Deposit 7. Sold 220 units to Allready Goods for 58 400 cash. Deposit 8 2 3 4 000 8 & N S 6 28 31 31 31 31 ADJUSTING ENTRIES The inventory of computer supplies was at $780 according to a count. A count of merchandise inventory showed 260 units. Two months of the prepaid insurance has passed. 4 remain. Two months of the prepaid rent has passed. 1 remain. Two months have passed for computer equipment depreciation which has a 5-year life with no residual value. Two months have passed for office equipment depreciation which has a 10-year life with no residual value. Donald Gee is owed 7 days work. As of December 31, half of the work for Allready goods has been complete. Bad Debt Expense Adjustment 31 31 31 31 31 Balance Date 05/01 05/01 05/02 05/03 05/04 05/07 05/09 05/17 05/17 05/17 05/23 05/25 05/31 05/31 MAY 2018 BANK STATEMENT Cheque/Deposit # Amount Open Deposit 4 4,720 Cheque 4 -120 Deposit 5 4,000 Cheque 9 -14,000 Cheque 10 -1,380 Deposit 6 10,890 Cheque 13 -5,940 Cheque 6 -1,380 Cheque 11 -5,280 Cheque 15 -2,200 Deposit 7 3,000 Interest Income 12 Bank Charges -35 14,043 18,763 18,543 22,643 8,643 7,263 18,153 12,213 10,833 5,553 3,353 6,353 6.365 6,330
