100% wellexplained: acct 221 midterm

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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.