Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The beginning inventory consists of 100 units The company uses the FIFO perpetual inventory assumption The transactions for the month were: Purchase a computer for

The beginning inventory consists of 100 units
The company uses the FIFO perpetual inventory assumption
The transactions for the month were:
Purchase a computer for the company (paid cash) $2700
Paid salary of $1200
Paid cash for utility expense $400
It has been determined that John Smith will not pay what he owes the company. The account balance is $40.
Paid cash for rent expense $1500
Collected cash from customer within 10 days of sale date. Sale was $500. Credit terms were 2/10, n/30
Received cash from customer for work done previously $5,000. Paid after discount period.
Paid $500 for advertising. $100 is for current month the balance to be used in next four months.
Paid accounts payable invoice $600 (put the discount to freight expense), credit terms 1/10, n/30. Paid within 10 days.
Paid accounts payable amounts $2600. Credit terms n/30.
Purchased office supplies on account $200
Purchased inventory on account 300 units $3300
Paid freight on incoming product $300. (Include in cost of units purchased above)
Cash sales were 250 units, $5000
Purchased inventory for cash 350 units $4200
Paid freight to ship goods to customer $200
Credit sales were 400 units $8000
Paid Dividend of $200
Required:
Record the transaction (journal entries)
Post the transactions to the ledger (T accounts)
Prepare trial balance
Record adjusting journal entries for February 28:
The prepaid insurance was paid October 1st for 6 months
Supplies on hand at the end of the month are $300
The note payable was signed December 31st. It bears an interest rate of 6%. The note is due in 18 months.
Record depreciation, the computer has an estimated life of 3 years and no salvage value. The company uses straight line method of depreciation. Assume the computer was purchased on the first day of the month
The company estimates that 1% of accounts receivable will not be collectable
Post the adjusting entries to the ledger (T accounts)
Prepare an adjusted trial balance
Prepare the February 28 financial statements:
Multi Step Income Statement
Statement of retained earnings
Classified Balance Sheet
Cash Flow Statement
image text in transcribed
Emily Corp Beginning Balances 1-Feb-18 Debit Credit 10000 7000 Cash Accounts Receivable Allowance for doubtful accounts Office Supplies Inventory Prepaid Insurance 60 300 1000 2000 Accounts Payable Interest Payable Note Payable 3000 50 10000 Stock 1000 6190 Retained Earnings 20300 20300

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

Cost Benefit Analysis Theory And Application

Authors: Tevfik F. Nas

1st Edition

080397132X, 978-0803971325

More Books

Students also viewed these Accounting questions