Foundations of Accounting I
Accounting Project
Written by: Karen Pitsch
Special thanks to Donna Larner
Randiddle Co. is a merchandising business. Their account balances as of November 30, 2012 (unless otherwise indicated), are as follows:
110Cash$ 74,370
112Accounts Receivable 6,178
113Allowance for Doubtful Accounts 650
115Merchandise Inventory 2,346
116Prepaid Insurance 5,750
117Store Supplies 2,850
123Store Equipment 100,800
124Accumulated Depreciation-Store Equipment 31,060
210Accounts Payable 3,286
211Salaries Payable 0
218Interest Payable 0
220note payable (Due 2017) 30,000
($6,000 to be paid in 2013)
310Randiddle, Capital (January 1, 2012) 46,288
311Randiddle, Withdrawals 60,000
312Income Summary 0
410Sales 296,130
411Sales Returns and Allowances 10,020
412Sales Discounts 7,200
510Cost of Goods Sold 30,250
520Sales Salaries Expense 34,400
521Advertising Expense 18,000
522Depreciation Expense 0
523Store Supplies Expense 0
529Miscellaneous Selling Expense 2,800
530Office Salaries Expense 25,500
531Rent Expense 24,200
532Insurance Expense 0
533Bad Debt Expense 0
539Miscellaneous Administrative Expense 1,650
The Essay on Pelican Stores Management
As a follow up to my previous memorandum, I have prepared specific descriptive statistics regarding the results of the previous coupon promotion period throughout the month of July. These descriptive statistics such as the relationship between net sales and descriptive statistics on net sales by various classifications of customers, as well as the descriptive statistics concerning the relationship ...
550 Interest Expense 1,100
Randiddle Co. uses the perpetual inventory system and the First-in, First-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the First-in, First-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt.
The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily).
Randiddle Co. sells three types of microwave ovens.
The sale prices of each are:
900 watt microwave: $199
1000 watt microwave: $299
1200 watt microwave: $499
During December, the last month of the accounting year, the following transactions were completed:
Dec. 1. Issued check number 2632 for the December rent, $2,200. 2. Sold two 1200 watt microwaves for cash.
4. Purchased four 1000 watt microwaves on account from Matt Co., terms 2/10, n/30, FOB shipping point, $596.
5. Issued check number 2633 to pay the transportation charges on purchase of December 4, $89. (NOTE: Debit Merchandise Inventory. Do not include shipping and purchase discounts to the Inventory Control sheet for this
project.) 6. Sold six 1000 watt microwaves and four 1200 watt microwaves on account to Briana Co., invoice 891, terms 2/10, n/30, FOB shipping point. 8. Issued check number 2634 for refund of cash on sales made for cash, $150. (Customer was going to return goods until an allowance was arranged.) 10. Purchased store supplies on account from Prince Co., terms n/30, $310. 10. Issued check to Matt Co. number 2635 for the full amount due, less discount allowed. (Round discount to nearest dollar.)
11. Paid Prince Co. full amount due, check number 2636.
12. Issued credit memo for one 1000 watt microwave returned on sale of December 6. (NOTE: Assume the returned microwave was from the 11/30 inventory) 13. Issued check number 2637 for advertising expense for last half of December, $3,000. 14. Received cash from Briana Co. for the full amount due (less return of December 12 and discount; round to nearest dollar).
The Term Paper on Political Issues between Spain and Gibraltar
GIBRALTAR; THE SOVEREIGNTY TRIANGLESummary:The debate between Britain and Spain over Gibraltar has been going on for over 300 years. Although Britain has current possession and Spaniards believe it is theirs – the argument goes deeper than just national pride. The conclusion to this dispute needs to be resolved soon for the greater good of economy of Spain and the European Union along with the ...
19. Issued check number 2638 to buy five 900 watt microwaves, $495. 19. Issued check number 2639 for $596 to Joseph Co. on account. 20. Sold seven 900 watt microwaves on account to Cameron Co., invoice number 892, terms 1/10, n/30, FOB shipping point. 20. To expedite sale on Dec. 20, issued check number 2640 for shipping charges on sale to Cameron on December 20, $120 (NOTE: Cameron Co. will be reimbursing us for this shipping cost).
21. Received $1,396 cash from McKenzie Co. on account, no discount.
21. Purchased three 1200 watt microwaves on account from Elisha Co., terms 1/10, n/30, FOB shipping point, $747, shipping $78 (NOTE: Debit Merchandise Inventory $825, but only put $747 in the Inventory Control Sheet).
24. Received notification that Marie Co. has been granted bankruptcy with no amount of recovery. We are to write-off her amount due. (Note: See page 365 for entry required.)
26. Issued a debit memo for return of $249 because of damage to one 1200 watt microwave purchased on December 21, receiving credit from the seller.
27. Issued check number 2641 for sales salaries of $2,050 and office salaries of $1,400.
28. Purchased store equipment on account from Joseph Co., terms n/30, FOB destination, $1,200.
29. Issued check number 2642 for store supplies, $70.
29. Purchased seven 1000 watt microwave from Prince Co, terms 1/10, n/30, FOB shipping point, for $1,113 on account, shipping $107. 30. Sold eight 1000 watt microwaves on account to Briana Co., invoice number 893, terms 2/10, n/30, FOB shipping point.
30. Received cash from sale of December 20, less discount, plus transportation paid on December 20. (Round calculations to the nearest dollar.) 31. Issued check number 2643 for purchase of December 21, less return of December 25 and discount. (Round discount to the nearest dollar.) 31. Issued a debit memo for $200 of the purchase returned from December 28.
Instructions:
1. Enter the balances of each of the accounts in the appropriate balance column of the General Ledger (B-S and I-S Ledger).
Write Balance in the item section, and place a (x) in the Post Reference column. 2. Journalize the transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal as illustrated in chapter 7. Also post to the Accounts Receivable and Accounts Payable Subsidiary ledgers and Inventory Control Sheet as needed. 3. Total each column on the special journals and prove the journals. 4. Post the totals of the account named columns and individually post the “Other Accounts” columns as well to the General Ledger. 5. Prepare the Schedule of Accounts Receivable and the Schedule of Accounts Payable (their total amount must equal the amount in their controlling general ledger account).
The Essay on “Teenagers need to take into account important issues in order for a relationship to flourish.”
Discuss the statement above with reference to two poems you have studied on the theme “Relationship.” There are several important issues that teenagers need to consider seriously when being involved in a relationship. Issues such as having honest open communication and dialogue, understanding one another, not being judgemental, knowing and loving each other are important elements in ...
6. Prepare the unadjusted trial balance on the worksheet.
7. Complete the worksheet for the year ended December 31, 2012, using the following adjustment data: a. Merchandise inventory on December 31 $1,090
b. Insurance expired during the year 2,250
c. Store supplies on hand on December 31 850
d. Depreciation for the current year needs to be calculated. The business uses the Straight-line method, the store equipment has a useful life of 10 years with no salvage value. (NOTE: the purchase and return will not be included as the dates of the transactions were after the 15th of the month).
e. Accrued salaries on December 31:
Sales salaries$1,075
Office salaries 540 $1,615
f. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month. g. Calculate the Bad Debt adjustment amount; net realizable value of Accounts Receivable is determined to be $6,313.
8. Prepare a multiple-step income statement, a statement of owner’s equity, and a classified balance sheet in good form. (Recommend review of “Current Liabilities” on page 149.) 9. Journalize and post the adjusting entries.
10. Journalize and post the closing entries. Indicate closed accounts by inserting a zero in both balance columns opposite the closing entry.
11. Prepare a post-closing trial balance.
The Term Paper on The intangible assets section of the balance sheet
E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Instructions (a)Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. 13.Goodwill acquired in the purchase of a business. 15.Cost of purchasing a patent from an inventor 16.Legal costs ...
