Question

omer Company uses the perpetual inventory procedure. Given below is an abbreviated balance sheet he company as of Dec. 31, 2019: 22,000 44,000 96,000 8,000 170,000 Current Assets: Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Fixed Assets: Land Buildings Less Accumulated Depreciation Equipment Less Accumulated Depreciation 22,000 142,000 63,000 79.000 46,000 10,000 36,000

Answer 1

Jomer Company Journal Enteries Event Particulars a. Accounts Receivable a/c To Sales (Sales on account) Dr. Debit in $ Credit in $ 420000 420000 Dr. 211000 Inventory a/c To Accounts Payable (Inventory on account) 211000 Dr. 204000 Cost of goods sold a/c To Inventory (To record cost of goods sold) 204000 Dr. 442000 Cash a/c To Accounts Receivable (Cash from debtors) 442000 e. Dr. 196000 Accounts Payable a/c To Cash (Creditors paid) 196000 f. Dr. 8000 Prepaid Expenses a/c To Cash (Prepaid expense paid) 8000 Dr. 10000 Expense a/c To Prepaid Expenses (Expenses incurred) 10000 Dr. 6000 Interest Expense a/c To Cash (Interest paid) 6000 136000 Payroll expense a/c Dr. To Payroll Expense Payable (Payroll expense accrued) 136000 k. 137000 Accrued Expenses Payable a/c Dr. To Cash (Expense accrued) 137000 1. Dr. 2200 Income Tax Payable a/c To Cash (Income tax paid) 2200 m. 17000 Depreciation Expense a/c Dr. To Accum. Depreciation - Build (To record depreciation) 17000 n. 6900 Depreciation Expense a/c Dr. To Accum. Depreciation - Equip. (To record depreciation) 6900 0. Dr. 26000 Equipment a/c To Cash (Equipment purchased) 26000 p. Dr. Income Tax Expense a/c To Income Tax Payable (Income tax accrued) 4. Dr. Cash Dividend a/c To Cash (Dividend paid) 6000

Trial Balance For the period ending 31.12.2020 Particulars Debit in $ Credit in $ Cash 82800 Accounts Receivable 22000 Inventory 103000 Prepaid Expenses 6000 Land 22000 Buildings 142000 Accum. Depreciation - Build 80000 Equipment 72000 Accum. Depreciation - Equip. 16900 Accounts Payable 39000 Income Taxes Payable 800 Accrued Expenses Payable 5000 Bonds Payable 7% due 2027 150000 Notes Payable 8000 Capital Stock ($10 par,5000 shares) 50000 Retained Earnings 66000 Cash Dividend 6000 420000 Cost of goods sold 204000 Other Expense 10000 Interest Expense 6000 Payroll expense 136000 Depreciation Expense 23900 Income Tax Expense Totals 835700 835700 Sales

420000 -204000 216000 Statement of Income For the period ending 31.12.2020 Sales Cost of goods sold Gross Profit Other Expense Interest Expense Payroll expense Depreciation Expense Net Income 10000 6000 136000 23900 175900 40100 Statement of Retained Earnings For the period ending 31.12.2020 Beginnings Net Income 66000 40100 106100 -6000 100100 Less:Cash Dividends

Balance sheet As at 31.12.2020 Assets Current Assets Cash Accounts Receivable Inventory Prepaid Expenses Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities 82800 Accounts Payable 39000 22000 Income Taxes Payable 800 103000 Accrued Expenses Payable 5000 44800 6000 213800 Non Current Liabilities Bonds Payable 7% due 2027 150000 22000 Notes Payable 8000 158000 142000 -80000 62000 Shareholders Equity 72000 Capital Stock ($10 par, 5000 s 50000 -16900 55100 Retained Earnings 100100 150100 352900 Total Liabilities & Equity 352900 Non Current Assets Land Buildings Accum. Depreciation - Build Equipment Accum. Depreciation - Equip. Total Assets