Question
Use the Perpetual Inventory method as discussed in class for all sales of merchandise. TRANSACTION # DATE TRANSACTION DESCRIPTION 1 Sept 1 At the beginning
Use the Perpetual Inventory method as discussed in class for all sales of merchandise.
TRANSACTION # | DATE | TRANSACTION DESCRIPTION |
1 | Sept 1 | At the beginning of September, three brothers organized The Golf Club by contributing $60,000 each to begin the new business in exchange for shares of stock. |
2 | Sept 2 | Signed a one-year lease on an existing golf club and golf course for The Golf Club and made a $45,000 advance payment for the first three months rent. |
3 | Sept 2 | The Golf Club purchased the following fixed assets, paying 20% down and giving a two-year, 6% APR, note for the balance. Principle and interest are due at maturity. Furniture..$18,300 Fixtures$5,100 Equipment...$79,200 $102,600 |
4 | Sept 3 | Purchased a 6-month insurance policy on The Golf Club and its contents and paid the premium of $3,600 in advance. |
5 | Sept 3 | Purchased office supplies for $675 on an open account from Kellis Office Supplies. The Golf Club has 30 days to pay for the supplies. |
6 | Sept 3 | Purchased on account a total of 100 shirts with an embroidered Golf Club logo from C & C Creations at a price of $12 per shirt. These shirts are available for resale to customers. |
7 | Sept 3 | Purchased concessions for $4,200 from Delta Distributing, Inc. These concessions consist of energy drinks, chips, crackers, nuts etc., and are available for resale to customers. The Golf Club paid 30% down and put the balance on account. |
8 | Sept 3 | Sold 75, twelve-month memberships to The Golf Club for $2,250 each. All membership dues were collected in cash. |
9 | Sept 3 | Purchased a 6-month maintenance contract with Larrys Landscaping to provide grounds maintenance. Paid $7,200 in advance for this service. |
10 | Sept 5 | Provided 50 hours of golf lessons to members. Fees are charged at a rate of $60/hour. Of these fees, $650 was collected in cash and the balance was billed to individual members accounts. |
11 | Sept 6 | Received a bill for $400 from The Golf Clubs attorney for legal services rendered. |
12 | Sept 8 | Sold 44 shirts to a corporate member, Allen & Associates for $21.50 each. Collected $430 in cash and the balance is owed to The Golf Club on account. |
13 | Sept 14 | Purchased an additional $250 in office supplies on open account from Kellis Office Supplies. |
14 | Sept 15 | Paid wages and salaries of $3,100 to Golf Club employees. |
15 | Sept 15 | Sold 25, twelve-month memberships to the club for $2,250 each. Collected the dues in cash. |
16 | Sept 15 | The concessions stand reported sales of merchandise for $5,200 for the first half of the month. The concessions that were sold had an original cost of $2,800. All of these transactions were billed directly to each members account. |
17 | Sept 16 | Purchased additional concessions for $1,800 from Delta Distributing on open account. |
18 | Sept 18 | Paid the total amounts due to C&C Creations, the Golf Clubs attorney and Kellis Office Supplies. |
19 | Sept 19 | Sold 36 shirts to individual customers for $30 each. Collected 30% in cash, the balance is owed to the Golf Club on account. |
20 | Sept 22 | The Golf Club declared and paid a dividend of $1,000 to each shareholder. |
21 | Sept 26 | Collected the balance of what was owed on account from Allen & Associates. |
22 | Sept 28 | Received a utility bill that totaled $980 for the month. It is due Oct. 14. |
23 | Sept 30 | Fees for golf lessons for the last half of September (billed to members accounts) = $4,680 |
24 | Sept 30 | Cash sales of shirts (8 @ $30 each) = $240 |
25 | Sept 30 | Sales for concessions during the last half of September (20% collected in cash) = $4,800 Cost of concessions sold from September 16-30 = $2,400 |
26 | Sept 30 | Cash received during September for services billed to members accounts = $4,400 |
27 | Sept 30 | Cash received for visitors greens fees (fee to play the golf course) = $1,250 |
28 | Sept 30 | Purchased additional fixtures for the golf club totaling $2,650. The total amount was paid in cash. |
ADDITIONAL INFORMATION:
- Depreciation expense for the month of September should be calculated using the straight-line method with the following useful lives (no salvage value is anticipated. If necessary, round to the nearest whole dollar):
Furniture 5 years
Fixtures 5 years
Equipment 3 years
- At the end of the month, a physical count was taken of the Golf Clubs assets, inventories and supplies. It revealed the following information:
- Seven of the shirts for resale were on hand at September 30.
- Concession merchandise still on hand as of September 30 amounted to $675.
- Salaries earned by employees but unpaid at September 30 totaled $3,300.
4. There were $425 of Office Supplies still on hand as of September 30.
On the Financial Statements worksheet, the Gross Profit in the Income Statement is...
A. | $37,603 | |
B. | $31,347 | |
C. | $33,747 | |
D. | $25,417 |
On the General Ledger, what is the COGS ending balance, after the closing entry has been made?
$6,256 | ||
$1,056 | ||
$5,200 | ||
$0 |
On the General Ledger, what is the Unearned Revenue ending balance after the adjusting entry has been made?
A. | $225,000 | |
B. | $208,593 | |
C. | $168,750 | |
D. | $152,343 |
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