100% wellexplained: acct 221 midterm

21 Midterm : Ch. 1-6

 

Problem

 

            1.   Journalize the following selected transactions for April 2013 in a two-column journal.  Journal entry explanations may be omitted.

 

April 1

Received cash from stockholder, Kevin Marks, in return for stock, $14,000.

2

Received cash for providing accounting services, $9,500.

3

Billed customers on account for providing services, $4,200.

4

Paid advertising expense, $700.

5

Received cash from customers on account, $2,500.

6

Dividends paid, $1,010.

7

Received telephone bill, $900.

8

Paid telephone bill, $900.

 

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

              

 

            2.   Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.

 

1.  Fees accrued but unbilled are $4,500.

2.  The supplies account balance on December 31 is $5,250.  The supplies on hand are $1,015.

3.  Wages accrued but not paid are $3,500.

4.  Depreciation of office equipment is $2,200.

5.  Rent expired during year, $7,800.

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            3.   On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.

 

Cash

$  30,000

 

Accounts Receivable

45,200

 

Supplies

5,000

 

Equipment

169,900

 

Accumulated Depreciation

 

$  32,000

Accounts Payable

 

12,500

Capital Stock

 

71,600

Dividends

47,000

 

Fees Earned

 

510,000

Salary Expense

244,500

 

Rent Expense

48,000

 

Depreciation Expense

25,000

 

Supplies Expense

9,500

 

Miscellaneous Expense

      2,000

              

 

$626,100

$626,100

 

 

 

 

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

      4.Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The

           seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The

           correct amount is paid within the discount period.

 

Record the foregoing transactions of the buyer in the sequence indicated below.

 

(a)

Purchased the merchandise.

(b)

Recorded receipt of the credit memorandum for merchandise returned.

(c)

Paid the amount owed.

 

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 

      5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:

          FOB shipping point, 2/10, n/30.  The seller prepays the $50 shipping charges and bills the customer, (seller

          pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for

          merchandise costing $500 that is returned. The correct amount is received within the discount period.

 

Record the foregoing transactions of the seller in the sequence indicated below.

 

(a)

Sold the merchandise, recognizing the sale and cost of merchandise sold.

(b)

Paid the transportation charges.

(c)

Issued the credit memorandum.

(d)

Received payment from the customer.

 

Date

Description

Post Ref

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6. The following data regarding purchases and sales of a commodity were taken from the related perpetual    inventory account:

 

June   1            Balance                        25 units at $60

        6  Sale                  20 units

        8  Purchase          20 units at $61

       16 Sale                  10 units

       20 Purchase          20 units at $62

       23 Sale                  25 units

       30 Purchase          15 units at $63

 

Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the last-in, first-out method.  Identify the quantity, unit price, and total cost of each lot in the inventory.

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