Question

Requirement 5-8

Page 1 PRACTICE SET ACCOUNTING 3341 (5133) SPRING 2019 This practice set is intended to refresh your basic accounting skills by requiring you to record, summarize, and report the results of a basic set of accounting transactions for a sample company. HOW TO PROCEED Enter the current period transactions in the General Journal. Use the journal entry number for each transaction as a reference. It is not necessary to include an explanation for the entries in this problem Enter the beginning balances for each account in the General Ledger and post the current period journal entries to the accounts in the General Ledger Balance each account in the General Ledger List each account balance on the Unadjusted Trial Balance. 2. 4. 5. Record the adjusting entries in the General Journal. Post the adjusting entries to the General Ledger and re balance each account List each account balance on the Adjusted Trial Balance. Prepare a multiple-step Income Statement, a Statement of Retained Earnings, and a classified Balance Sheet Record the year-end closing entries in the General Journal, post them to the General Ledger, and re-balance each account. 6. 8. 9. Prepare a Post-Closing Trial Balance. REQUIREMENTS COMPLETE THE FOLLOWING FOR THE PERIOD CURRENTLY ENDED: Income Statement (Multiple Step)-including Earnings-Per-Share 6. Statement of Retained Earnings. 7. Balance Sheet (Classified) 8. Post-Closing Trial Balance. All of the above must be submitted inside this bound workbook and in page number sequence in order to insure uniformity in the grading process. If your practice set is submitted in any other deducted for failure to follow instructions. NOTE: form, credit will be

Answer 1

Inventory To Accounts Payable $ 403,920 $ 403,920 Accounts Receiveble To Sales Revenue 982,800 $ 982,800 $ 593,040 COGS To Inventory $ 593,040 Cash Ałc To Accounts Receivable 852,480 $852,480 Accounts Payable To Cash $ 360,000 360,000 Telephone & Utility Expense Salaries and wages Expense Rent Expense To Cash $ 23,904 $381,600 $36,000 $441,504 COGS To Inventory (Being Inventiory Revalued) Alternatively Income Summary can be used for This entry $8,400 $8,400 Depreciation Expense-Equipmemt $44,064 To Accumulated Depreciation Equipment (979200-97920)/20 $44,064 Income Tax Expense To Income Ta Payable $ 160,800 $ 160,800

Trail Balance Nov'18 After Dec Entries Post Adjusting Entries Debit $ 511,776 Closing TB Account Code Account Title Debit Credit Debit Credit Credit Debit S 511,776 $ 412,560 Credit 460,800 $ 282,240 $ 767,520 s 979,200 1110 1120 Accounts Receivable 1130 1230 Equipment 1231Accumulated Depreciation Equipment 2110Accounts payable 2210 3010 Common Stock ($1 Par) 3020 3030 3040 4010 5020 Cost of good sold 6010 6060 Telephone & Utility Expense 6070 6120 6410 $ 511,776 412,560 412,560 564,000 $ 979,200 Merchandise Inventory $ 572,400 $ 979,200 S 564,000 $ 979,200 S 396,576 S 297,360 $ 160,800 $ 40,000 S 173,744 S 352,512 $ 253,440 352,512 $ 297,360 $396,576 $ 297,360 $ 160,800 $ 40,000 S173,744 Income Tax Payable S 40,000 S173,744 $ 40,000 $ 173,744 Paid in Capital in excess of par Income Summary Retained Earnings Sales Revenue $ 509,400 $7,729,200 $ 509,400 S 8,712,000 $ 509,400 S 8,712,000 $1,399,056 $ 3,511,440 $ 2,696,400 $ 178,560 S 182,136 $ 4,110,480 $ 3,078,000 $ 202,464 $ 218,136 S 4,118,880 $ 3,078,000 $ 202,464 $ 218,136 $ 44,064 $ 160,800 Salaries and wages Expense Rent Expense Depreciation Expense- Equipmemt Income Tax Expense Total $9,058,296 $9,058,296 10,085,016 $10,085,016 10,289,880 10,289,880 2,467,536 $2,467,536

Fiona florist e Statemen $8,712,000 $4,118,880 $4,593,120 Sales Revenue Less: Cost of Goods Sold Operating Profit Less Salaries and wages Expense Telephone & Utility Expense Rent Expense $3,078,000 $ 202,464 218,136 EBITDA Less. Depreciation Expense- Equipmemt PBT Less: Income Tax Expense PAT Number of Share EPS $1,094,520 $ 44,064 $1,050,456 $ 160,800 889,656 S 40,000 Fiona florist Statemen Opening Balance S 509,400 889,656 $1,399,056 Add: Profit For The Year Closing Balance

Balance Sheet As At December 31,2018 Amount Amount Amount Amount I. Equity & Liabilites 1] Shareholder Funds a)Share Capital Common Stock S 40,000 Paid in Capital in excess of par b) Retained Earnings 173744 S 213,744 S 1,399,056 2) Long Term Liabilites 3) Current Liabilites a) Accounts Payable $ 297,360 $ 160800 458,160 b)Income Tax Payables Total $ 2,070,960 Il. Assets 1) Non Current Assets a) Property, Plant & Equipment 5979,200 5 396,576 582,624 Equipment Less Accumulated Depreciation b) Intangible Assets 2) Current Assets a) Cash b) Inventory c) Account Receivable $511,776 $564,000 5412,560 1,488,336 Total $ 2,070,960