UNDER THE PERIODIC INVENTORY SYSTEM:
Instructions - Journalize the July transactions for (1) Tramley Company and for (2) Simpson Co.
The accounts and their balances in the ledger of bait and tackle Co, on December 31, 2003 are as follows:
Cash $38,000
Accounts Receivable 112,500
Merchandise inventory 180,000
Prepaid insurance 9,700
Store supplies 4,250
Office supplies 2,100
Store equipment 132,000
Accumulated depreciation-store equipment 40,300
Office equipment 50,000
Accumulated depreciation- office equipment 17,200
Accounts payable 66,700
Salaries payable
Unearned rent 1,200
Note payable (final payment,2010) 105,000
Capital stock 25,000
Retained earnings 129,600
Dividends 40,000
Income summary
Sales 915,000
Sales returns and allowances 11,900
Sales discount 7,100
Purchases 540,000
Purchase returns allowances 10,100
Purchase Discounts 4,900
Transport in 6,200
Sales salaries expense 71,400
Advertising expense 25,000
Depriciation Expense---store equipment
Store supplies expense
Miscellaneous selling Expense 1,600
Office salaries expense 44.000
Rent Expense 26,000
Insurance Expense
Depreciation Expense-Office Equipment
Office supplies expense
Miscellaneous Adminstrative Expense $ 1,650
Rent Revenue
Interest Expence 11,600
The Data needed for year-end adjustments on December 31 are as follows:
Merchandise Inventory on December 31..................................... $196.000
Insurance expiered during the year............................................. 5,400
Supplies on hand on December 31:
Store Supplies........................................................................... 1,300
Office Supplies.......................................................................... 750
Depriciation for the year:
Store Equipment...................................................................... 7,500
Office Equipment..................................................................... 3,800
Salaries Payable on December 31:
Sales salaries............................................................................. $3,850
Office salaries.......................................................................... 1,150 5,000
Unearned rent on December 31.................................................... 400
Instructions
1. Prepare a work sheet for the fisical year ended December 31, listing all accounts in the order givein.
2. Prepare the multiple-step income statement.
3. Prepare a retained earnings statement.
4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $15,000.
5. Journalize the adjusting entries.
6. Journalize the closing entries.