Question

1ooooo P.Jay, Withdrawals Sales Sales Returns and Allowances Sales Discounts Cost of Goods Sold Advertising Expense Rent Expense Salaries Expense 20000 260 000 49 48 000 1140 000 1000000 13 6 0 00 115 8 4 000 115 8 40 00 b. Lumber supplie c. Insurance expir d. Depreciation for e. Accrued wages Set B 128-1. From Training Fees Earned Dep'n. Exp., Equipment Insurance Expense (C) 40 000 (D) 50 000 22l2loloo 2220 Account Tit (150 min) L01,2,3 12A-4. Using the ledger balances and additional data shown on the next page, do the following for Meyer Lumber for the year ended December 31, 2019: a. Prepare the worksheet. b. Prepare the income statement, statement of owner's equity and balance sheet. c. Journalize and post adjusting and closing entries. (Be sure to put begin ning balances in the ledger first.) d. Prepare a post-closing trial balance. e. Journalize the reversing entry for wages. Check Figure: Net Income $3.841 Sales Sales Return Sales Discou Cost of Goo Salaries Exp Insurance E Advertising Rental Incon Rent Expen Depreciation Salaries Pay Account Balances for Meyer Lumber Account No. $1,680 960 Net Income 110 111 112 113 114 121 Cash Accounts Receivable Merchandise Inventory Lumber Supplies Prepaid Insurance Lumber Equipment Accumulated Depreciation, Lumber Equipment Accounts Payable 4,550 269 218 3,000 490 1,160 122 220

Answer 1

Meyer Lumber Adjusting Enteries Trans. Particulars Cost of goods sold a/c To Inventory (Inventory value adjusted) Dr. Debit in $ Credit in $ 130 130 b. Dr. Lumber Supplies Expense a/c To Lumber Supplies (Supplies Expensed) 269 - 110 159 Dr. Insurance Expense a/c To Prepaid Insurance (Insurance expensed) 120 d. 300 Depreciation Expense Lumber - Equip a/c Dr. To Accum. Depre - Lumber Equip (To record depreciation) 300 e. 125 Wages Expense a/c Dr. To Wages Payable (Wages accrued) 125 22800 -200 22600 -14345 8255 Statement of Income For the period ending 31.12.2019 Sales Sales Returns and Allowances Net Sales Cost of goods sold Gross Profit Wages Expense Advertising Expense Rent Expense Depreciation Expense, Lumber Equipment Lumber Supplies Expense Insurance Expense Net Income 2605 400 830 300 159 120 4414 3841 Statement of Owner's Equity For the period ending 31.12.2019 L. Meyer, Capital Net Income 7352 3841 11193 -3000 8193 L. Meyer, Withdrawals

Closing Enteries Date Particulars Debit in $ Credit in $ 31.12.2019 Income Summary a/c Dr. 18959 To Sales Returns and Allowances 200 To Cost of goods sold 14345 To Wages Expense 2605 To Advertising Expense 400 To Rent Expense 830 To Depreciation Expense, Lumber Equipment 300 To Lumber Supplies Expense To Insurance Expense 120 (Expense accounts closed) Dr. 22800 31.12.2019 Sales a/c To Income Smmary (Revenue accounts closed) 22800 3841 31.12.2019 Income Summary a/c To L. Meyer, Capital (Profits Transferred) 3841 3000 31.12.2019 L. Meyer, Capital a/c To L. Meyer, Withdrawals (Withdrawals charged) 3000 Reversing Enteries Date Particulars 1.1.2020 Wages Payable a/c To Wages Expense (Entry reversed) Debit in $ Credit in $ 125 125 1.1.2020 125 Wages Expense a/c Dr. To Cash (Entry reversed) 125

Trial Balance For the period ending 31.12.2019 110 Acct. No. Particulars 110 Cash 111 Accounts Receivable 112 Merchandise Inventory 113 Lumber Supplies 114 Prepaid Insurance 121 Lumber Equipment 122 Accum. Depre - Lumber Equip 220 Accounts Payable 221 Wages Payable 330 L. Meyer, Capital L.Meyer, Withdrawals 332 Income Summary 440 Sales 441 Sales Returns and Allowances 550 Cost of goods sold 660 Wages Expense 661 Advertising Expense 662 Rent Expense 663 Depreciation Expense, Lumber Equipment 664 Lumber Supplies Expense 665 Insurance Expense Totals Unadjusted Adjustments Adjusted Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ 1680 1680 960 960 4550 130 4420 269 159 218 120 98 3000 3000 490 300 790 1160 1160 125 125 7352 7352 3000 3000 331 22800 22800 200 14215 2480 400 830 130 125 200 14345 2605 400 830 300 159 120 32227 300 159 120 834 31802 31802 834 32227

Balance sheet As at 31.12.2019 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Lumber Supplies Prepaid Insurance Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities 1680 Accounts Payable 1160 960 Wages Payable 125 1285 4420 110 7268 98 Non Current Assets Lumber Equipment Accum. Depre - Lumber Total Assets 3000 -790 Owner's Equity 2210 P.Jay, Capital 9478 Total Liabilities & Equity 8193 9478