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un Accounting 300 Practice Set #2 60 points Olaf Distribution adjusts its books every quarter. The below balances exist as of April Accounts Payable $

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un Accounting 300 Practice Set #2 60 points Olaf Distribution adjusts its books every quarter. The below balances exist as of April Accounts Payable $ 79,300 Interest Payable $ 8.000 Accounts Receivable 50,300 Interest Revenue 4,000 Accumulated Depr.- Building 52,500 Merchandise Inventory 75,000 Accumulated Depr. -Equipment 42,900 Notes Payable 80,000 Building 190,000 Office Salaries Expense 32.000 Cash 23,800 Prepaid Insurance 2,400 Common Stock 92,600 Retained Earnings 84.000 Cost of Goods Sold 412,700 Depr. Expense - Building 10,400 Sales 628,000 Depr. Expense - Equipment 13,300 Sales Discounts 14,500 Dividends (Withdrawals) 28,000 Salaries Payable 4,300 Equipment 110,000 Sales Returns and Allowances 8,000 Insurance Expense 7,200 Utilities Expense 12,000 Interest Expense 11,000 Sales Salaries Expense 76,000 Utilities Expense Payable 1,000 During May, Olaf Distribution completed the following merchandising transactions. May 1 2. 5 9 10 17 Sold merchandise on account $4,500, terms 2/10, n/30. The cost of the merchandise sold was $3,200. Purchased merchandise on account from Dakota Supply Co. $5,900, terms 2/10, n/30 Received credit from Dakota Supply for merchandise returned $500 Paid the amount owed to Dakota Supply Received collections on amount owed from customers billed on May 1 Purchased merchandise from Skywalker Distributors $3,500, FOB shipping point, terms 1/15, n/30 Pald freight on May 17 purchase $100 Sold merchandise for cash $5,600. The merchandise sold had a cost of $3,500 Purchases merchandise for cash, $2,300 Paid amount owed to Skywalker Distributors Made refunds to cash customers for defective merchandise $900. The returned merchandise had a cost of $300. 19 24 25 27 29 INSTRUCTIONS: a) Open Taccounts with the April 30th balances as beginning amounts b) Journalize the May transactions in the journal. c) Post the May transactions to the T-accounts. d) Prepare a Trial Balance e) Prepare a Multiple-Step Income Statement and a Statement of Owner's Equity for the 5 months ended May 31 (there are no AJEs in for May). Prepare a classified balance sheet as of May 31 ($20,000 of the Notes Payable are due in the upcoming year) f) Prepare the closing entries g) Post the closing entries h) Prepare a post-closing Trial Balance

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