Question

someone please help me with this revision outline. ao i can prepare well for the upcoming exam

Problem - Adjusting Entries (15 points) The following information for CLH Company is available on June 30, 2018, the end of a monthly accounting period. You are to prepare the necessary adjusting journal entries for CLH Company for the month of January for each situation given. Aporopriate adjusting entries had been recorded in previous months. You may omit journal entry explanations. 1. Lance Company purchased a 3-year insurance policy on March 1, 2018, and debited Prepaid Insurance for $7.200. 2. On January 1, 2018, a tenant in an apartment building owned by CLH Company paid 55,400, which represents six months' rent in advance. The amount received was credited to the Unearned Rent account. 3. On June 1, 2018, the balance in the Office Supplies account was $100. During June, office supplies costing 5600 were purchased. A physical count of office supplies at June 30 revealed that there was $250 still on hand. 4. On March 31, 2018, CLH Company purchased a delivery van for $42,000. It is estimated that the annual depreciation will be $8,400. 5. TL&MA Company has two office employees who earn $80 and 590 per day, respectively. They are paid each Friday for a five-day workweek that begins cach Monday, June 30 is a Thursday in 2016. Problem II - Journal Entries (15 points) For each situation given below prepare journal entries on the October for BC Company B us perpetual inventory system. Oct. 5 Paid $15,000 cash for operating expenses that were incurred and properly recorded in the previous period. 8 Purchased merchandise for $12,000 on account. Credit terms: 2/10, n/30. 10 Paid freight bill of $200 for merchandise purchased on October 8. Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled 20 Sold merchandise for $16,000 to TL on account. The cost of the merchandise sold was $9,500. Credit terms: 2/10, n/30. 25 Issued a credit memo to TL for $1,000 for merchandise returned by him from the sale on October 20. The cost of the merchandise returned was $600. Problem III - Multiple-Step Income Statement (15 points) Below is a partial listing of the adjusted account balances of TL Department Store at year-end on December 31, 2018 Accounts Receivable $ 20,000 Cost of Goods Sold 260,000 Selling Expenses (includes depreciation) 36,000 Interest Expense 2,500 Accumulated Depreciation - Building 12,000 Sales Discounts 20,000 Merchandise Inventory 47.000 Administrative Expenses (includes depreciation) 17,000 Sales 400,000 Accounts Payable 15,000 Page 2 of 4

Answer 1

Answer to Problem I: Account Titles and Explanation Insurance Expense ($7,200 1/3* 1/12) Debit Credit No. 1 200 Prepaid Insurance (To record Insurance Expense for the month) Unearned Rent ($5,400* 1/6) 200 900 2. Rent Revenue 900 (Torecord Rent Revenue for the month) Supplies Expense ($100 $600- $250) Office Supplies (Torecord Supplies used) Depreciation Expense ($8,400 1/12) Accumulated Depreciation- Truck (Torecord Depreciation expense) Salaries and Wages Expense [($80 + $90)* 4] Salaries and Wages Payable (To record Salaries and Wages Expenses accrued) 3. 450 450 700 4. 700 5 680 680

Answer 2

Periodic Inventories (10 points) TH Company uses the periodic inven available for the month of November t ed and had the following w ory information Date Transaction Beginning inventory 250 11/5 Purchase Not 11/12 Sale No. 1 (150) 11/18 Purchase No. 2 250 11/25 Sale No. 2 (300) Answer the following independent questions and show computations supporting your answers 1. Assume that the company uses the average cost method. What is the dollar value of the ending inventory on November 307 What is the dollar value of the cost of goods sold during November? 2. Assume that the company uses the FIFO inventory method. What is the dollar value of the ending inventory on November 30? What is the dollar value of the cost of goods sold during November?