Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Dadds Lamp Company (DLC), owned by Jolene Dadds, is a wholesale company that purchases lamps from the manufacturer and resells them to retail stores.

image text in transcribed

image text in transcribedimage text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed

The Dadds Lamp Company (DLC), owned by Jolene Dadds, is a wholesale company that purchases lamps from the manufacturer and resells them to retail stores. (Click the icon to view the additional information.) The trial balance for DLC as of September 30, 2018 follows: Click the icon to view the trial balance.) . More Info The company has three inventory items: desk lamps, table lamps, and floor lamps. DLC uses a perpetual inventory system, FIFO method. DLC owns land with a building, which is separated into two parts: office space and warehouse space. All expenses associated with the office are categorized as Administrative Expenses. All expenses associated with the warehouse, which is used for the shipping and receiving functions of the company, are categorized as Selling Expenses. In addition to the land and building, DLC also owns office furniture and equipment and warehouse fixtures. The company uses one accumulated depreciation account for all the depreciable assets. Print Done Data Table -X Dadds Lamp Company Trial Balance September 30, 2018 Balance Account Debit Credit Cash $ 455,000 Accounts Receivable 0 Merchandise Inventory 153,600 Office Supplies 220 Warehouse Supplies 480 Land 12,000 Building 760,000 Office Furniture and Equipment 130,000 Warehouse Fixtures 360,000 Accumulated Depreciation $ 250,000 Accounts Payable 0 Dadds, Capital 383,200 Dadds, Withdrawals 0 Sales Revenue 2,600,100 Cost of Goods Sold 1,035,000 Salaries Expense_Selling 180 000 180,000 34,000 0 0 Salaries Expense-Selling Utilities Expense-Selling Supplies Expense-Selling Depreciation ExpenseSelling Salaries Expense-Administrative Utilities ExpenseAdministrative Supplies Expense-Administrative Depreciation Expense-Administrative 85,000 28,000 0 0 $ 3,233,300 $ 3,233,300 Total Oct. 1 Purchased lamps on account from Carpathian Lights, terms n/30, FOB destination: 4,500 desk lamps at $14 each 6,000 table lamps at $20 each 3,500 floor lamps at $27 each 12 Sold lamps on account to Harmony Home Furnishings, terms 2/10,n/30: 4,500 table lamps at $46 each 15 Sold lamps on account to Kennesaw Office Supply, terms 3/10, n/30: 900 desk lamps at $17 each 20 Received a check from Harmony Home Furnishings for full amount owed on Oct. 12 sale. 23 Received a check from Kennesaw Office Supply for full amount owed on Oct. 15 sale. 28 Sold lamps on account to Turnpike Home Stores, terms 2/10, n/30: 1,500 table lamps at $46 each 1,100 floor lamps at $68 each 30 Paid amount due to Carpathian Lights from Oct. 1 purchase. 31 Paid salaries, $35,000 (75% selling, 25% administrative). 31 Paid utilities, $2,800 (60% selling, 40% administrative). Nov. 1 Sold lamps on account to Kennesaw Office Supply, terms 1/10, n/30: 2,600 desk lamps at $17 each 5 Purchased lamps on account from Carpathian Lights, terms 1/30, FOB destination: 4,500 desk lamps at $17 each 8,500 table lamps at $21 each 7,000 floor lamps at $30 each 5 Received a check from Tumpike Home Stores for full amount owed on Oct. 28 sale. 8 Received a check from Kennesaw Office Supply for full amount owed on Nov. 1 sale. 10 Purchased and paid for supplies: $425 for the office: $575 for the warehouse 15 Sold lamps on account to Robinson Office Supply, n/30: 1,800 desk lamps at $17 each 18 Sold lamps on account to Metro Discount Stores, terms 2/10, n/30: 2,100 table lamps at $46 each 2,200 floor lamps at $68 each 28 Received a check from Metro Discount Stores for full amount owed on Nov. 18 sale. 30 Paid salaries, $35,000 (75% selling, 25% administrative). 30 Paid utilities, $2,890 (60% selling, 40% administrative). Dec. 5 Paid amount due to Carpathian Lights from Nov. 5 purchase. 15 Received a check from Robinson Office Supply for full amount owed on Nov. 15 sale. 15 Dadds withdrew $20,000 from the business. 27 Sold lamps on account to Harmony Home Furnishings, terms 1/10,n/30: 4,200 desk lamps at $17 each 3,400 table lamps at $46 each 31 Paid salaries, $35,000 (75% selling, 25% administrative). 31 Paid utilities, $3,800 (60% selling, 40% administrative). Merchandise Inventory as of September 30 consists of the following lamps: (Click the icon to view the Merchandise Inventory.) During the fourth quarter of 2018, DLC completed the following transactions: (Click the icon to view the transactions) Read the requirements. i Data Table Item Total Cost Desk Lamp Table Lamp Floor Lamp Quantity Unit Cost 3,000 $ 12 $ 4,000 $ 17 1,600 $ 31 $ 36,000 68,000 49,600 153,600 Total Print Done Requirement 1. Open general ledger T-accounts and enter opening balances as of September 30, 2018. (Enter a "er on the normal side of the account for accounts with a zero balance as of September 30, 2018. Abbreviation used Depe depreciation) Accounts Payable Sales Revenue Cash Accounts Receivable Dadds, Capital Cost of Goods Sold Merchandise Inventory Dadds. Withdrawal Salaries Expenseseling Office Supplies Utilities Expense-Selling Warehouse Supplies Supplies Expense-Selling Land Depreciation Expense-Selling Building Salaries Expense-Administrative Office Furniture and Equipment Utilities Expense-Administrative Warehouse Fixtures Supplies ExpenseAdministrative Accumulated Depreciation Depr. Expense-Administrative

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

Ethical Obligations And Decision Making In Accounting Text And Cases

Authors: Steven Mintz, Roselyn Morris

2nd Edition

0078025281, 9780078025280

More Books

Students also viewed these Accounting questions