Question

Chapter 4 Accounting 10 W A LIULUI . Feb 13 The company sold merchandise with a retail value of $5,200 and a cost of $3.560 toll invoice dated January 13. to Liu Corp- 15 The company paid $600 cash for freight charges on the merchandise purchased on January 16 The company received $4,000 cash from Delta Co. for computer services provided 17 The company paid Kansas Corp. for the invoice dated January 7, net of the di 20 The company gave a price reduction allowance) of $500 to Liu Corp. and credited Ile counts receivable for that amount 22 The company received the balance due from Liu Corp, net of the discount and the allowance 24 The company returned defective merchandise to Kansas Corp. and accepted a credit future purchases (debited accounts payable). The defective merchandise invoice cost of the discount, was $496. 26 The company purchased $9,000 of merchandise from Kansas Corp. with terms of 1/10. 30 FOB destination, invoice dated January 26. 26 The company sold merchandise with a $4,640 cost for $5,800 on credit to KC, Inc. invoice dated January 26. 31 The company paid cash to Lyn Addie for 10 days work at $125 per day 1 The company paid $2,475 cash to Hillside Mall for another three months' rent in advance The company paid Kansas Corp. for the balance due, net of the cash discount, less the $405 credit from merchandise returned on January 24. The company paid $600 cash to Facebook for an advertisement to appear on February 5 only. 11 The company received the balance due from Alex's Engineering Co. for fees billed on January 11, 15 The company paid a $4,800 cash dividend. 23 The company sold merchandise with a $2,660 cost for $3,220 on credit to Delta Co., invoice dated February 23. The company paid cash to Lyn Addie for eight days' work at $125 per day. The company reimbursed Santana Rey $192 cash for business automobile mileage. The com- pany recorded the reimbursement as "Mileage Expense." Mar. 8 The company purchased $2,730 of computer supplies from Harris Office Products on credit with terms of n/30, FOB destination, invoice dated March 8. 9 The company received the balance due from Delta Co, for merchandise sold on February 23 11 The company paid $960 cash for minor repairs to the company's computer. 16 The company received 55,260 cash from Dream, Inc., for computing services provided 19 The company paid the full amount due of $3,830 to Harris Office Products, consisting of amounts created on December 15 (of $1,100) and March 8. 24 The company billed Easy Leasing for $9,047 of computing services provided. 25 The company sold merchandise with a $2,002 cost for $2,800 on credit to Wildcat Services, invoice dated March 25. 30 The company sold merchandise with a $1,048 cost for $2,220 on credit to IFM Company, in- voice dated March 30. 31 The company reimbursed Santana Rey $128 cash for business automobile mileage. The com- pany recorded the reimbursement as "Mileage Expense." The following additional facts are available for preparing adjustments on March 31 prior to financial state ment preparation a. The March 31 amount of computer supplies still available totals $2,005. b. Prepaid insurance coverage of $555 expired during this three-month period. c. Lyn Addie has not been paid for seven days of work at the rate of $125 per day. d. Prepaid rent of $2,475 expired during this three-month period. e. Depreciation on the computer equipment for January 1 through March 31 is $1,250. t. Depreciation on the office equipment for January 1 through March 31 is $400. 9. The March 31 amount of merchandise inventory still available totals $704. Required Ending balances - 31: Cash $68057 319240 TB totals. 557. Ad TB totals Ys general ledger. No 1. Prepare journal entries to record each of the January through March transactions 2. Post the journal entries in part 1 to the accounts in the company's general ledger. Note: Begin with the ledger's post-closing adjusted balances as of December 31, 2019. 3. Prepare a 6-column worksheet (similar to the one shown in Ethibit 3.13) that includes the unadjusted trial balance, the March 31 adjustments (a) through ), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger [continued a next page] balances as of December 31 2. Prepare a 6-colume

Answer 1

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General AutoSum - A Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells - A1 ГДА | fx Business Solutions в Business Solutions 3 Date D Credit General Journal 4-Jan Wages Wages Payable($125*4) To Cash (Being amount paid to Lyn Addie) ebit $ $ 125.00 500.00 625.00 BECO VUN $ 25,000.00 5-Jan Cash To Common Stock (Being amount invested by Santana) 25,000.00 $ 5,800.00 7-Jan Merchandise Inventory To Accounts Payable (Being amount of Merchandise purchased from Kansas) 5,800.00 9-Jan $ 2,668.00 Cash To Accounts Receivable-Gomez Co. (Being amount received from Gomez Co.) 2,668.00 $ $ 1,500.00 5,500.00 23 11-JanUnearned Computer Service Revenue Accounts Receivable-Alex Engineering To Service Revenue IiAmount received ac advance from Alev's Engineering Sheet1 Sheet2 Sheet30 7,000.00 Ke Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 S OU 100% 0 - 19:46 op ^VORENG 30-10-2019 1 2 * @ $ e o 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center | 9 1 1 conditional Format sett od 12 - 3 insert Delete Format Autosum * 2 Clear sort & Find & Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells A1 - fc Business Solutions F G H I J А 11-Jan Unearned Computer Service Revenue Accounts Receivable-Alex Engineering To Service Revenue (Amount received as advance from Alex's Engineering) $ $ 1,500.00 5,500.00 7,000.00 $ 5,200.00 13-Jan Accounts Receivable-Liu Corporation To Sales (Being amount of Sales ) 5,200.00 $ 3,560.00 13-Jan Cost of Goods Sold To Merchandise Inventory (Being amount of cost of goods sold) 3,560.00 33 $ 600.00 15-Jan Freight To Cash (Being amount of freight paid) 600.00 $ 4,000.00 16-Jan Cash To Accounts Receivable-Delta Company (Being amount received from Delta Co.) 4,000.00 $ 5,800.00 17-Jan Accounts Payable To Cash($5800*99%) To Merchandise Inventory($5880*1%) Sheet1 Sheet2 Sheet3 43 44 Ke Ready 5,742.00 58.00 Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO OP AND 100% 0 - 19:47 ENG 20-1 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J A1 fx Business Solutions в 17-Jan Accounts Payable To Cash($5800*99%) To Merchandise Inventory($5880*1%) (Being amount of paid after discount) $ 42 43 44 5,800.00 5,742.00 58.00 $ 600.00 20-Jan Sales Return To Accounts Receivable (Being amount of sales return) 600.00 $ 270.00 20-Jan Merchandise Inventory To Cost of goods sold (Being amount of cost of sales returned) 270.00 $ $ 4,554.00 46.00 22-Jan Cash=($5200-600)*99% Sales Return and Allowances=($5200-$600) *1% To Accounts Receivable (Being amount of cash received from Liu corp) 4,600.00 $ 496.00 24-Jan Accounts Payable To Merchandise Inventory (Being amount of goods returned) 496.00 62 $ 9,000.00 63 64 65 Ke Ready 26-Jan Merchandise Inventory To Accounts Payable Sheet1 Sheet2 Sheet30 9,000.00 Average: 22281.26327 100% + Count: 603 Sum: 6550691.4 OO OPA O 0 19:47 30-10-2019 30-1 E ENG W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Be Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center z 1 D . ze 3 AutoSum" AT A Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells TE F G H I J A1 fic Business Solutions в 26-Jan Merchandise Inventory To Accounts Payable (Being amount of merchandise inventory purchased from Kansas Corpn) $ 64 65 9,000.00 9,000.00 $ 5,800.00 26-Jan Accounts Receivable To Sales (Being amount of sales to K.C.Inc.) $ 5,800.00 $ 4,640.00 26-Jan Cost of Goods sold To Merchandise Inventory (Cost of goods sold to K.C Inc.) 4,640.00 $ 1,250.00 31-Jan Wages($125*10) To Cash (Being amount paid to Lyn Addie) 1,250.00 $ 2,475.00 81 1-Feb Prepaid Rent To Cash (Being amount paid to Hillside Mall for 3 months Rent) 2,475.00 82 83 84 $ 8,504.00 85 3-Feb Accounts Payable=($9000-$496) To Cash=($8504*99%) To Merchandise Inventory($8504*1%) Sheet1 Sheet2 Sheet30 8,419 86 85 Ke Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO OPA O 100% - E ENG 0 19:47 30-10-2019 30-1 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 conditional Format se - 3 insert Delete Format Autosum * Ž clear somente selection Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J 84 A1 for Business Solutions B 3-Feb Accounts Payable=($9000-$496) To Cash=($8504*99%) To Merchandise Inventory($8504*1%) (Being amount paid to Kansas Corpn) $ 8,504.00 85 8,419 85 86 87 88 $ 600.00 5-Feb Advertisement To Cash (Being amount paid to Facebook for advertisement exp) 600.00 93 $ 5,500.00 94 $ 5,500.00 11-Feb Cash To Accounts Receivable (Being amount received from Alex Enginnering, no discount is allowed because not within 10 days) $ 4,800.00 15-Feb Dividend To Cash (Being amount paid for dividend) 4,800.00 $ 3,220.00 102 23-Feb Accounts Receivable To Sales (Being amount of sales to Delta Co.) 3,220.00 103 104 105 $ 2,660.00 106 23-Feb Cost of goods sold To Merchandise Inventory Sheet1 Sheet2 Sheet3 2,660.00 K Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO OP AND 100% 0 - 19:47 ENG 20-1 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 conditional Format se - 3 insert Delete Format Autosum * Ž clear somente selection Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J 84 A1 for Business Solutions B 3-Feb Accounts Payable=($9000-$496) To Cash=($8504*99%) To Merchandise Inventory($8504*1%) (Being amount paid to Kansas Corpn) $ 8,504.00 85 8,419 85 86 87 88 $ 600.00 5-Feb Advertisement To Cash (Being amount paid to Facebook for advertisement exp) 600.00 93 $ 5,500.00 94 $ 5,500.00 11-Feb Cash To Accounts Receivable (Being amount received from Alex Enginnering, no discount is allowed because not within 10 days) $ 4,800.00 15-Feb Dividend To Cash (Being amount paid for dividend) 4,800.00 $ 3,220.00 102 23-Feb Accounts Receivable To Sales (Being amount of sales to Delta Co.) 3,220.00 103 104 105 $ 2,660.00 106 23-Feb Cost of goods sold To Merchandise Inventory Sheet1 Sheet2 Sheet3 2,660.00 K Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO OP AND 100% 0 - 19:47 ENG 20-1 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = General Arial BI U - -14 - A À ->-A Wrap Text Merge & Center 1 1 drional Format cu - 3 insert Delete Format Autosum * 2 clear Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing be st Font Alignment Number Cells A1 f ic Business Solutions TE F G H I J $ 2,660.00 23-Feb Cost of goods sold To Merchandise Inventory (Being amount of cost of goods sold to Delta Co.) 2,660.00 105 106 107 108 109 110 111 $ 1,000.00 26-Feb Wages To Cash (Being amount paid to Lyn Addie for 8 days) 1,000.00 112 113 $ 192.00 114 27-Feb Mileage Expenses To Cash (Being amount reimbursed for mileage expenses) 192.00 115 116 117 118 $ 2,730.00 2,730.00 8-Mar Computer Supplies To Accounts Payable (Being amount of computer supplies purchased from Harris Office Products) 119 120 $ 3,220.00 122 9-Mar Cash To Accounts Receivable (Being amount received from Delta Co.) $ 3,220.00 124 125 | $ 960.00 126 960.00 11-Mar Repairs Expenses To Cash (Being amount paid for minor repairs) Sheet1 Sheet2 Sheet30 127 Ke Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO ol A O 100% 0 - 19:47 E ENG 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J 129 A1 f Business Solutions B 16-Mar Cash To Computer Service Revenue (Being amount received from Dream Inc.) $ 5,260.00 130 5,260.00 131 132 $ 3,830.00 134 19-Mar Account Payable($1100+$2730) To Cash (Being amount paid to Harris Products Inc) 3,830.00 135 136 137 138 $ 9,047.00 24-Mar Accounts Receivable To Computer Service Revenue (Being amount billed to Easy Leasing for computer service provided) 9,047.00 139 140 141 142 $ 2,800.00 25-Mar Account Receivable To Sales (Being amount of sales to Wildcat Services) 2,800.00 143 $ 2,002.00 25-Mar Cost of goods sold To Merchandise Inventory (Being amount of Cost of goods sold) 2,002.00 144 145 146 147 148 149 150 151 152 Ke Ready $ 2,220.00 30-Mar Account Receivable To Sales (Being amount of sales to IFM Company) 2,220.00 Sheet1 Sheet2 Sheet30 + Average: 22281.26327 Count: 603 Sum: 6550691.4 OO ol A O 100% 0 - 19:47 E ENG 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = General Arial BI U - -14 - A À ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J $ 1,048.00 1,048.00 A1 O f ic Business Solutions ГА в 153 30-Mar Cost of goods sold 154 To Merchandise Inventory (Being amount of Cost of goods sold) 156 157 31-Mar Mileage Expenses To Cash 159 (Being amount paid to Santana Rey for Mileage expenses) 155 $ 128.00 158 128.00 160 161 162 163 Credit Adjusting Entries 164 Date General Journal 165 31-Mar Computer Supplies Expenses($580+$2730-$2005) To Computer Supplies (Amount of Computer supplies expenses) Debit $ 1,305.00 166 1,305.00 167 $ 555.00 31-Mar Insurance To Prepaid Insurance (Being amount of 3 months insurance expired) 555.00 $ 875.00 31-Mar Wages($125*7) To Wages Payable (Being amount of wages payable) 875.00 175 1761 Sheet1 Sheet2 Sheet3 Ready Average: 22281.26327 + Count: 603 Sum: 6550691.4 90 OP AND 100% 0 19:47 ENG 20-1 30-10-2019 W

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View BED Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * A Paste Format Painter Clipboard Conditional Format Formatting as Table Styles 2222222 Insert Delete Format Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J $ 2,475.00 2,475.00 $ 1,250.00 A1 fx Business Solutions ДА B 177 31-Mar Rent 178 To Prepaid Rent 179 (Being amount of 3 months Rent) 180 181 31-Mar| Depreciation-Computer Equipment To Accumulated Depreciation-Computer Equipment 183 (Being amount of Depreciation on Equipment) 184 185 31-Mar Depreciation Office Equipment To Accumulated Depreciation Office Equipment 187 (Being amount of Depreciation on Office Equipment) 188 189 182 1,250.00 $ 400.00 400.00 190 191 Cash A/C Date Account Title & Explanation 1-Jan 4-Jan 4-Jan 5-Jan 9-Jan 15-Janl Sheet1 Sheet2 Sheet3 125.00 500.00 Balance 48,372.00 $ 48,247.00 $ 47,747.00 72,747.00 75,415.00 $ 74.815.00 $ $ 25,000.00 2,668.00 199 2001 ► Ready 600.00 Average: 22281.26327 + Count: 603 Sum: 6550691.4 OO OP AND 100% 0 - 19:47 ENG 20-1 30-10-2019 0

Book1 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View Cut Copy = = = * General Arial - 14 - A À BI U - ->-A Wrap Text Merge & Center 1 1 - 3 Autosum * - % 8.09 Paste Format Painter Clipboard Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles 2 Clear Sort & Find & Filter Select Editing Font Alignment Number Cells F G H I J 195 os 198 $ $ 25,000.00 2,668.00 $ 4,000.00 $ 4,554.00 A1 for Business Solutions A B 194 Date Account Title & Explanation 1-Jan 196 4-Jan 197 4-Jan 5-Jan 9-Jan 15-Jan 16-Jan 17-Jan 22-Jan 31-Jan 205 1-Feb 3-Feb 5-Feb 11-Feb 15-Feb 26-Feb 211 27-Feb 9-Mar 11-Mar 214 16-Mar 19-Mar 216 31-Mar 2171 HAR Sheet1 Sheet2 Sheet3 Ready Balance 48,372.00 125.00 $ 48,247.00 500.00 $ 47,747.00 72,747.00 75,415.00 600.00 $ 74,815.00 78,815.00 5,742.00 73,073.00 77,627.00 1,250.00 76,377.00 2,475.00 $ 73,902.00 8,419 65,483.04 600.00 $ 64,883.04 70,383.04 4,800.00 65,583.04 1,000.00 $ 64,583.04 192.00 $ 64,391.04 67,611.04 960.00 66,651.04 71,911.04 3,830.00 $ 68,081.04 128.00 $ 67,953.04 208 $ 5,500.00 21 212 $ 3,220.00 213 $ 5,260.00 215 + Average: 22281.26327 Count: 603 Sum: 6550691.4 OO ol A O 100% 0 - 19:48 E ENG 30-10-2019 0