PROBLEM
Le Bere Office Supplies Company
Work Sheet
For the Year Ended September 30, 19x4
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Trial Balance
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Adjustments
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Income Statement
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Balance Sheet
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Account Name
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Debit
|
Credit
|
Debit
|
Credit
|
Debit
|
Credit
|
Debit
|
Credit
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Cash
|
21,150
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|
|
|
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21,150
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Accounts Receivable
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74,490
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74,490
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Merchandise Inventory
|
214,200
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|
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214,200
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266,700
|
266,700
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Store Supplies
|
11,400
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(a) 9,750
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1,650
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Prepaid Insurance
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14,400
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(b) 7,200
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7,200
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Store Equipment
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253,900
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|
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253,900
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Accumulated Depreciation Store Equipment
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76,500
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(c) 15,000
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91,500
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Accounts Payable
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116,850
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(e) 300
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117,150
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Grace Le Bere, Capital
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484,050
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|
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|
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484,050
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Grace Le Bere, Withdrawals
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72,000
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|
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|
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72,000
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Sales
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1,225,750
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|
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1,225,750
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Sales Returns and
Allowances
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25,440
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25,440
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|
|
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Purchases
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754,800
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|
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|
754,800
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|
|
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Purchases Returns and Allowances
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18,150
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|
|
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18,150
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|
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Freight In
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31,200
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|
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31,200
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|
|
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Sales Salaries Expense
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193,800
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|
(d) 1,950
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|
195,750
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|
|
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Rent Expense
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144,000
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|
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144,000
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|
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Other Selling Expenses
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98,730
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|
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98,730
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|
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Utilities Expense
|
11,790
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|
(e) 300
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|
12,090
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|
|
|
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1,921,300
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1,921,300
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|
|
|
|
|
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Store Supplies Expense
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(a) 9,750
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|
9,750
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|
|
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Insurance Expense
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(b) 7,200
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|
7,200
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Depreciation Expense,
Store Equipment
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(c) 15,000
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15,000
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Sales Salaries Payable
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(d) 1,950
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1,950
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34 200
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34,200
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1,508,160
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1,510,600
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697,090
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694,650
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Net Income
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1. Complete the totals in columns 5 through 8 of the worksheet.
2. Prepare a detailed Income Statement [see the format on page 281 (Exhibit 10) and 291 (Exhibit 16) of the textbook as an example].
Prepare both Exhibits for your quiz.
3. Compute the Gross Profit (GP) ratio and the Inventory Turnover. See pgs 340 - 344 (Chp 7).
(a) GP = Net Sales - COGS (pages 265 & 282). GP ratio = "Gross Profit" / "Net Sales".
4. Prepare the closing entries (assume periodic 'inventory). See pages 291 - 292.
NOTE: The Merchandise Inventory amounts in the Income Statement and Balance Sheet of the worksheet $214,288 (Beg Inv.) and $266,700 (End Inv). See pages 289-292 of textbook.