Question

ICON acum yui su U IT ensure you receive credit. Identify, analyze, record, and post transactions (THERE ARE 4 PARTS TO THIS QUESTION): King Toot's music store sells musical instruments and other related merchandise to customers. The following is a list of King Toot's account balances at the beginning of December (e. as of December 1, 2017): Cash: $18,750; Accounts Receivable (A/R): $11,980; Inventory: $20,800; Equipment: $34,400; Accounts Payable (A/P): $13,930; Notes Payable (N/P): $55,000; Common Stock: $17,000. Assume all other accounts had a balance of $0 as of 12/1/17. The accountant for King Toot's observed the following transactions which occurred during December 2017 a. 12/3/17: Issued 400 shares of common stock for $10 per share. b. 12/5/17: Sold merchandise inventory, which originally cost $900, for $2,200 to customers. Of the $2,200 in sales. $500 worth was purchased by customers using cash. The remaining $1,700 was purchased by customers on account. (HINT: don't forget there will be two parts to record here-one part to record the sales revenue and one part to record the cost of the merchandise inventory sold). c. 12/8/17: Paid $4,250 in cash to creditors on outstanding accounts payable. d. 12/20/17: Received $3,080 in cash from customers as payment on their accounts receivable. 12/30/17: Paid $1,100 in cash for December's Rent. f. 12/30/17: Paid $120 in cash dividends to stockholders. Part 1 - Account Identification and transaction analysis: Prepare a transaction worksheet' summarizing all of the December transactions for King Toot's. I have provided a framework for you and completed transaction a. for you as an example. After recording all transactions, be sure to calculate ending balances as of 12/31/17 and enter them in the last row of the worksheet. HINT: Make sure the accounting equation remains in balance after entering each transaction Cash Equip Assets Accts. Inventory Rec. (A/R) $11,980 $20,800 Liabilities Accts Notes Payable Payable (A/P $13,930 $55,000 Common Stock Stockholders' Equity Retained Earnings Rev. (Exp.) (Div.) $34,400 + $0 SO SO 12/1 a. $18,750 $4,000 $17,000 +$4,000 b.1. b.2. 12/31

parts 1 and 2 are done and I posted them here, i would just appreciate help with parts 3 and 4. Thanks!

Answer 1

Credit King Toot's music store T Accounts Date Debit Date Credit Cash 1-Dec $ 18,750 8-Dec $ 4,250 3-Dec $ 4,000 30-Dec $ 1,100 5-Dec $ 500 30-Dec $ 120 20-Dec $ 3,080 Date Debit Date Credit Accounts Receivable 1-Dec $ 11,980 20-Dec $ 3,080 5-Dec $ 1,700 Date Debit Date Credit Inventory 1-Dec $ 20,800 5-Dec $ 900 Date Debit Date Equipment 1-Dec $ 34,400 Bal. Bal. Bal. $ 34,400 Bal. $ 20,860 Accounts Payable 8-Dec $ 4,250 1-Dec $ 13,930 $ 10,600 Notes Payable 1-Dec $ 55,000 $ 19,900 Common Stock 1-Dec $ 17,000 3-Dec $ 4,000 Bal. $ 55,000 $ 21,000 $ 9,680 Sales Revenue 1-Dec $ . 5-Dec $ 2,200 Rent expense 1-Dec $ - 30-Dec $ 1,100 Bal. Cost of goods sold 1-Dec $ - 5-Dec $ 900 1-Dec $ 30-Dec $ Dividends . 120 Bal. $ 2,200 Bal. $ 1,100 Bal. $ 900 Bal. $ 120

King Toot's music store Account Names Cash Accounts Receivable Inventory Equipment Accounts Payable Notes Payable Common Stock Sales Revenue Cost of goods sold Rent expense Dividends Totals Unadjusted TB Debit Credit 20,860 10,600 19,900 34,400 9,680 55,000 21,000 2,200 900 1,100 120 87,880 87,880

Workings

Calculation + King Toot's music store Transac Balance Sheet Income Statement Assets Liabilities Stockholders Equity Date Cash Accts Rec Inventory Equipment = Accts Pay Notes Pay + Common Stock Retained Earnings Revenue Expenses Dividends 1-Dec $18,750 $ 11,980 $ 20,800 $ 34,400 = $ 13,930 $ 55,000 + $ 17,000 a $ 4,000 + $ 4,000 b.1 $ 500 $ 1,700 $ 2,200 b.2 $ (900) $ (900) $ (4,250) $ (4,250) d $3,080 $ (3,080) e $ (1,100) $ (1,100) f $ (120) $ (120) 31-Dec $20,860 $ 10,600 $ 19,900 $ 34,400 = $ 9,680 $ 55,000 + $ 21,000 $2,200 $ (2,000) $ (120) + -400*10 Sales Revenue Cost of goods sold + + + + Rent expense

King Toot's music store Journal entries No. Date Account a 3-Dec Cash Common Stock Credit Debit $ 4,000 $ 4,000 b.1 5-Dec Cash Accounts Receivable Sales Revenue $ $ 500 1,700 $ 2,200 b.2 $ 900 5-Dec Cost of goods sold Inventory $ 900 C $ 4,250 8-Dec Accounts Payable Cash $ 4,250 d $ 3,080 20-Dec Cash Accounts Receivable $ 3,080 e $ 1,100 30-Dec Rent expense Cash $ 1,100 f $ 120 30-Dec Dividends Cash $ 120