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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
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