If someone can knock this out, I will gladly repay you for your efforts! I also tried attaching the file because all the balances at the end got jumbled together but it exceeded the limit. I will gladly email it to you if you can help?
You have just landed at temporary assignment at a small retail company in your area. The accountant, who had completed the books through the end of November, went out on maternity leave during the first week of December. The task you have been given is to take the ending Trial Balance for November, prepare December transactions, prepare the December financials, and close the books.
The manager of the company has indicated that salaries, rent and depreciation for December are the same as the 11 months preceding (employees are paid at the end of the month). Additional transaction information follows:
December Advertising = $900 December Utilities = $700 December Communications = $500
The manager is pretty sure that they use LIFO for inventory, but it could be FIFO. Given the November transactions, determine which of the two methods is used. Then, use that same method to value ending inventory for December. Compute December Sales and Cost of Goods Sold, as well, and prepare the journal entries. Assume all inventory purchases are on credit. Also assume 80% of Sales are credit sales and the rest are for cash.
November
11 - 01 begin with 500 units @ $22.00 each
11 - 03 sold 250 units @ $35.00 each
11 - 05 purch 500 units @ $23.00 each
11 - 10 sold 250 units @ $36.00 each
11 - 15 purch 450 units @ $26.00 each
11 - 19 purch 300 units @ $28.00 each
11 - 23 sold 200 units @ $37.00 each
11 - 29 purch 300 units @ $30.00 each
December
12 - 01 begin with 1,350 units @ $36,000
12 - 04 sold 350 units @ $38.00 each
12 - 10 purch 500 units @ $29.00 each
12 - 13 sold 600 units @ $40.00 each
12 - 18 purch 600 units @ $31.00 each
12 - 20 sold 600 units @ $41.00 each
12 - 21 purch 400 units @ $30.00 each
12 - 24 sold 550 units @ $42.00 each
During December, supplies purchased totaled $1,100. A physical count showed that there were $1,850 remaining at the end of the year. Prepare the necessary adjusting entry.
It was discovered that the insurance policy was renewed on December 1st; coverage will cost $6,720 for the next 12 months. Prepare the necessary entries.
Collected $18,500 in cash from previous sales on credit. Those customers received $350.00 in discounts.
The manager would like you to write off an uncollectible customer account worth $5,200. You also need to ensure that the ending allowance is equal to 6.0% of ending A/R (round to the nearest whole dollar).
Paid $22,000 towards accounts payable; received $500 in discounts for prompt payment.
The company will also distribute $15,000 to the owners of the business.
Use the November 30th trial balance shown on the worksheet (page 4) for beginning balances and other information. You may wish to complete the worksheet before preparing the financial statements.
Using the information given, please prepare the inventory analyses, journal entries, worksheet (page 4), December financials, closing entries, and the post-closing trial balance.
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
cash dr 27,100
accounts receivable dr 8,720
allowance for BD cr 2,100
inventory dr 36,000
supplies dr 2,200
prepaid insurance -
land dr 50,000
equipment dr 75,000
accum. dep. - equip. cr 71,000
accounts payable cr 30,200
paid-in capital cr 70,000
retained earnings cr 18,900
distributions -
sales cr 259,710
sales discounts dr 23,650
sales return/allowance dr 11,000
cost of goods sold dr 118,800
salaries expense dr 32,230
rent expense dr 24,200
insurance expense dr 5,500
advertising expense dr 9,020
depreciation expense dr 11,000
utilities expense dr 6,930
communications exp dr 4,620
supplies expense dr 3,740
bad debts expense dr 2,200
other income -
other expense -
451,910 451,910
net income
You have just landed at temporary assignment at a small retail company in your area. The accountant, who had completed the books through the end of November, went out on maternity leave during the first week of December. The task you have been given is to take the ending Trial Balance for November, prepare December transactions, prepare the December financials, and close the books.
The manager of the company has indicated that salaries, rent and depreciation for December are the same as the 11 months preceding (employees are paid at the end of the month). Additional transaction information follows:
December Advertising = $900 December Utilities = $700 December Communications = $500
The manager is pretty sure that they use LIFO for inventory, but it could be FIFO. Given the November transactions, determine which of the two methods is used. Then, use that same method to value ending inventory for December. Compute December Sales and Cost of Goods Sold, as well, and prepare the journal entries. Assume all inventory purchases are on credit. Also assume 80% of Sales are credit sales and the rest are for cash.
November
11 - 01 begin with 500 units @ $22.00 each
11 - 03 sold 250 units @ $35.00 each
11 - 05 purch 500 units @ $23.00 each
11 - 10 sold 250 units @ $36.00 each
11 - 15 purch 450 units @ $26.00 each
11 - 19 purch 300 units @ $28.00 each
11 - 23 sold 200 units @ $37.00 each
11 - 29 purch 300 units @ $30.00 each
December
12 - 01 begin with 1,350 units @ $36,000
12 - 04 sold 350 units @ $38.00 each
12 - 10 purch 500 units @ $29.00 each
12 - 13 sold 600 units @ $40.00 each
12 - 18 purch 600 units @ $31.00 each
12 - 20 sold 600 units @ $41.00 each
12 - 21 purch 400 units @ $30.00 each
12 - 24 sold 550 units @ $42.00 each
During December, supplies purchased totaled $1,100. A physical count showed that there were $1,850 remaining at the end of the year. Prepare the necessary adjusting entry.
It was discovered that the insurance policy was renewed on December 1st; coverage will cost $6,720 for the next 12 months. Prepare the necessary entries.
Collected $18,500 in cash from previous sales on credit. Those customers received $350.00 in discounts.
The manager would like you to write off an uncollectible customer account worth $5,200. You also need to ensure that the ending allowance is equal to 6.0% of ending A/R (round to the nearest whole dollar).
Paid $22,000 towards accounts payable; received $500 in discounts for prompt payment.
The company will also distribute $15,000 to the owners of the business.
Use the November 30th trial balance shown on the worksheet (page 4) for beginning balances and other information. You may wish to complete the worksheet before preparing the financial statements.
Using the information given, please prepare the inventory analyses, journal entries, worksheet (page 4), December financials, closing entries, and the post-closing trial balance.
Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet
Account Title Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit
cash dr 27,100
accounts receivable dr 8,720
allowance for BD cr 2,100
inventory dr 36,000
supplies dr 2,200
prepaid insurance -
land dr 50,000
equipment dr 75,000
accum. dep. - equip. cr 71,000
accounts payable cr 30,200
paid-in capital cr 70,000
retained earnings cr 18,900
distributions -
sales cr 259,710
sales discounts dr 23,650
sales return/allowance dr 11,000
cost of goods sold dr 118,800
salaries expense dr 32,230
rent expense dr 24,200
insurance expense dr 5,500
advertising expense dr 9,020
depreciation expense dr 11,000
utilities expense dr 6,930
communications exp dr 4,620
supplies expense dr 3,740
bad debts expense dr 2,200
other income -
other expense -
451,910 451,910
net income