Question

1. Enter beginning balances in the T-accounts from the Beginning Balance Sheet, all accounts have normal balances. Common Stock has 200,000 shares issued and outstanding. 2. Additional information: Company uses a perpetual inventory system (discounts and freight are recorded in the inventory account). Suppliers offer a 2% discount; the company does not offer discounts to customers. No adjustment for inventory is needed.

3. Record the following summarized August transactions in a general journal. Use a blank line between transactions. Use the account titles as shown in the T-accounts, do not add any accounts. a. Purchased inventory on account, $35,000 b. Paid $3,200 freight fees c. Sold inventory on account, $25,000, cogs $12,500 d. Paid Wages and Salaries, $10,000, includes the amount due from the previous month's e. Received payments from customers on account, $35,000 f. Cash sales, $110,000, cogs $55,000 g. Paid for 6 months of business insurance, $6,000 h. Paid for 1 years rent, $12,000 i. Received cash advance payments from customers $6,000 j. Paid outstanding accounts payable within the discount period, $38,300 k. Completed $2,000 of work for customers that paid in advance (use Sales Account)

4. Post the transactions to the T-accounts; use reference numbers when posting, calculate the balance in each account after all posting is complete.

5. Prepare a trial balance.

6. Journalize and post any necessary adjusting entries; continue using the journal to record the entries. Hint: There are 3 entries. After adjusting entries have been posted all accounts will be used and have normal balances.

7. Additional adjusting entry: Wages earned but not paid totaled $1,000

8. Prepare an adjusted trial balance

9. Prepare a multiple-step Income Statement, a Retained Earnings Statement, and a Classified Balance Sheet

10. Journalize and post your closing entries

11. Prepare a post-closing Trial Balance

14. Check Figures: Trial balance before adjustment: $391,750 dr/cr

Beginning balances: Net Income: $57,200 Beginning Balance sheet July 31,20XX Cash $142,000 Accounts Payable $13,300 Accounts Receivable 13,250 Wage payable 1,200 Inventory 40,000 Common Stock 200,000 Fixed Assets (6,000 per year depreciation) 60,000 Retained earnings 34,750 Accum. Depr. (cr. Bal) (6,000) Total assets 249,250 Total liabilities & equity 249,250

C D E F G H I J K 1 Cash 1) Do not add lines for any account. 2) Ending balance goes below the first thin black line and should be on the normal balance side. 3) Post-closing balance - when needed - goes below the second thin black line. 9 Accounts Receivable 120 12 13 125 14 Inventory 15 20 Prepaid Insurance

This is all the info that was given to me to do this project.

Answer 1

Answer 1 & 4:

Account payable 38300 13300 35000 Cash 142000 35000 110000 6000 Account receivable 13250 35000 25000 Wages payable 1200 1200 Common stock 200000 3200 10000 6000 12000 37534 Inventory 40000 12500 35000 55000 3200 766 224266 10000 3250 9934 200000 Fixed assets 60000 Retained earnings 34750 Acc. Depreciation 6000 Sales revenue 25000 110000 2000 COGS 12500 55000 Wages expense 8800 137000 67500 8800 60000 Prepaid insurance 6000 34750 Prepaid rent 12000 6000 Unearned revenue 2000 6000 6000 12000 4000

Answer 3:

	Account Title	Debit	Credit
(a).	Inventory	35,000
	Account payable		35,000
(b).	Inventory	3,200
	Cash		3,200
(c).	Account receivable	25,000
	Sales revenue		25,000
(c).	Cost of goods sold	12,500
	Inventory		12,500
(d).	Wages expense	8,800
	Wages payable	1,200
	Cash		10,000
(e).	Cash	35,000
	Account receivable		35,000
(f).	Cash	110,000
	Sales revenue		110,000
(f).	Cost of goods sold	55,000
	Inventory		55,000
(g).	Prepaid insurance	6000
	Cash		6,000
(h).	Prepaid rent	12000
	Cash		12,000
(i)	Cash	6000
	Unearned revenue		6,000
(j).	Account payable	38300
	Inventory		766
	Cash		37,534
(k).	Unearned revenue	2000
	Sales revenue		2,000

Answer 5:

Unadjusted Trial Balance
Account Title	Debit	Credit
Cash	$ 224,266
Account receivable	3,250
Wages payable	-
Inventory	9,934
Common stock		200,000
Fixed assets	60,000
Acc. Depreciation		6,000
Sales revenue		137,000
Cost of goods sold	67,500
Wages expense	8,800
Prepaid insurance	6,000
Prepaid rent	12,000
Unearned revenue		4,000
Account payable		10000
Retained earnings		34750
Total	$ 391,750	$   391,750