Accounting Comprehensive Problem

The problem will take you through an entire accounting cycle, beginning with journalizing and posting a month’s worth of transactions in special journals and the general journal. You’ll work with inventory, a trial balance worksheet and prepare financial statement.

2

>SJ

JOURNAL

ED

CR.

1

2 2

3

4

5

6 6

SALES

Page No.

6

INVOICE

POST

ACCTS. REC.

DR.

COST OF SALE DR.

DATE

NO.

ACCOUNT Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper

DEBIT

REF

SALES

CR.

INVENTORY

1

3

4

5

CRJ

RECEIPTS JOURNAL

POST

SALES CASH

DATE

ED

REF

INVENTORY CR.

DR.

1 1
2 2
3 3
4 4
5 5
6 6

7

8

9

CASH

Page No. 4

OTHER

ACCOUNTS

COST/SOLD DR.

ACCOUNT

CREDIT

ACCTS – CR.

SALES – CR

REC. – CR.

DISC. – DR.

7

8

9

PJ

POST OTHER ACCOUNTS

DATE ACCOUNT CREDITED REF

CR. DR. DR.

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8

PURCHASES JOURNAL	Page No.								11
STORE		MERCH.
	(SUNDRY)		PAYABLE	SUPPLIES	INVENORY
	ACCTS – DR.

CPJ

8

POST OTHER ACCOUNTS MERCH.

DATE NO. ACCOUNT DEBITED REF (SUNDRY) PAYABLE INVENTORY CASH
ACCTS – DR. DR. CR. CR.
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9

10

11 11

12

13

14

15

16

CASH PAYMENTS JOURNAL	Page No.
CK.
							10
							12
							13
							14
							15
							16

Journal

POST
DATE

REF DEBIT CREDIT

1 1
2

2

3 3
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5 5
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8 8
9 9
10 10
11 11
12 12
13 13
14 14
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26

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29

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32

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41

JOURNAL

POST
DATE DESCRIPTION REF DEBIT CREDIT

1 1

2 2

3 3
4 4

5 5

6 6
7 7

8 8

9 9
10 10

11 11

12 12
13 13
14 14
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	JOURNAL	Page No. 53
	DESCRIPTION
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Page No. 54

Inventory

(

)

INVENTORY

Units

Amount Units cost per unit Amount

4

Purchases Cost of Goods Sold (Sales) INVENTORY
Date Units cost per unit Amount Units cost per unit Amount Units cost per unit Amount

11/30/12 3

Purchases Cost of Goods Sold (Sales) INVENTORY
Date Units cost per unit Amount Units cost per unit Amount Units cost per unit Amount

11/30/12 7

Inventory Control Sheet

900 watt microwave:

Purchases

Cost of Goods Sold

Sales

Date

Units

cost per unit

Amount

cost per unit

11/30/12

$79

$316

1000 watt microwave:

$119

$357

1200 watt microwave:

$239

$1,673

Ending Inventory Value:

AR-SUB

POST

DATE

REF

3,388

POST

DATE TRANSACTION REF DEBIT CREDIT

11/20/12 SJ 5

598

POST RUNNING

DATE TRANSACTION REF

BALANCE

SJ 5

796

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

SJ 5

1,396

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER

(CUSTOMERS)

Customer Name: Albert Co.

RUNNING

TRANSACTION

DEBIT

CREDIT

BALANCE

11/20/12

SJ 5

3,388

Customer Name: Marie Co.

RUNNING

BALANCE

598

Customer Name: Cameron Co.

DEBIT

CREDIT

11/15/12

796

Customer Name: McKenzie Co.

11/27/12

1,396

Customer Name: Briana Co.

AP-SUB

Prince Co.

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

398

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

P 10

596

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

P 10

795

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

P 10

1,497

Vendor Name:

POST RUNNING
DATE TRANSACTION REF DEBIT CREDIT BALANCE

ACCOUNTS PAYABLE SUBSIDIARY LEDGER
(VENDERS)
	Vendor Name:
11/26/12				P 10		398
Vendor Name: Joseph Co.
11/16/12		596
Vendor Name: Elisha Co.
11/29/12		795
Vendor Name: Matt Co.
11/28/12		1,497

SCH-SUB

Schedule of		Accounts Receivable
Total Accounts Receivable
Schedule of		Accounts Payable
Total Accounts Payable

B-S Ledger

Accounts

POST

DATE

REF DEBIT CREDIT DEBIT CREDIT

Accounts Receivable ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

Accounts Payable ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

Summary

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

	GENERAL LEDGER
	Balance Sheet
	Cash																														ACCOUNT NO.	110
																													BALANCE
																													ITEM
112
Allowance for Doubtful Accounts	113
	Merchandise Inventory	115
	Prepaid Insurance	116
	Store Supplies	117
	Store Equipment	123
Accumulated Depreciation-Store Equipment	124
210
	Salaries Payable	211
	Interest Payable	218
Note Payable	220
	Randiddle, Capital	310
	Randiddle, Withdrawals	311
	Income	312

I-S Ledger

GENERAL LEDGER

Accounts

Sales ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

Cost of Goods Sold ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

ACCOUNT NO.

POST BALANCE
DATE ITEM REF DEBIT CREDIT DEBIT CREDIT

Income	Statement
410
Sales Returns and Allowances	411
	Sales Discounts	412
510
Sales Salaries Expense	520
Advertising Expense	521
Depreciation Expense	522
Store Supplies Expense	523
Miscellaneous Selling Expense	529
Office Salaries Expense	530
Rent Expense	531
Insurance Expense	532
Bad Debt Expense	533
Miscellaneous Administrative Expense	539
	Interest Expense	550

WkSheet

Income

Trial Balance Statement

Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

1 Cash 1
2 Accounts Receivable 2
3

3

4 Merchandise Inventory 4
5 Prepaid Insurance 5
6 Store Supplies 6
7 Store Equipment 7
8

8

9 Accounts Payable 9
10 Salaries Payable 10
11 Interest Payable 11
12

12

13 Randiddle, Capital 13
14 Randiddle, Withdrawals 14
15 Sales 15
16

16

17 Sales Discounts 17
18 Cost of Goods Sold 18
19

19

20

20

21

21

22

22

23

23

24

24

25

25

27

27

26

26

28

28

29 Interest Expense 29
30 30
27 27
28 28
29 29

Worksheet
Unadjusted	Adjusted	Equity Statement
Account Title		Trial Balance	Adjustments	and Balance Sheet
				Dr.					Cr.
Allow for Doubtful Accts
Accm. Deprec-Store Eq.
Note Payable (Due 2017)
Sales Returns & Allow.
Sales Salaries Exp.
Advertising Exp.
Depreciation Exp.
Store Supplies Exp.
Misc. Selling Exp.
Office Salaries Exp.
Rent Exp.
Insurance Exp.
Bad Debt Exp.
Misc. Administrative Exp.

Income Stmt

Income Statement

Stmt Equity

Statement of Owner’s Equity

Bal Sheet

Balance Sheet

Post Trial

DEBIT CREDIT

Post-Closing Trial Balance

ACCOUNT TITLE

Foundationsof 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:

110
Cash

$ 74,370

112
Accounts Receivable

6,178

113
Allowance for Doubtful Accounts

650

115
Merchandise Inventory

2,346

116
Prepaid Insurance

5,750

117
Store Supplies

2,850

123
Store Equipment

100,800

124
Accumulated Depreciation-Store Equipment
31,060

210
Accounts Payable

3,286

211
Salaries Payable

0

218
Interest Payable

0

220
Note Payable (Due 2017)

30,000

($6,000 to be paid in 2013)

310
Randiddle, Capital (January 1, 2012)
46,288

311
Randiddle, Withdrawals

60,000

312
Income Summary

0

410
Sales

296,130

411
Sales Returns and Allowances

10,020

412
Sales Discounts

7,200

510
Cost of Goods Sold

30,250

520
Sales Salaries Expense

34,400

521
Advertising Expense

18,000

522
Depreciation Expense

0

523
Store Supplies Expense

0

529
Miscellaneous Selling Expense

2,800

530
Office Salaries Expense

25,500

531
Rent Expense

24,200

532
Insurance Expense

0

533
Bad Debt Expense

0

539
Miscellaneous Administrative Expense
1,650

550
Interest Expense

1,100

Randiddle Co. uses the perpetual inventory system and the Last-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 Last-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).

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).

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.

ACCOUNTING PROJECT

Name:

Item

Possible
Score

Sales Journal

1

0

Cash Receipts Journal

9

Purchases Journal

10

Cash Payments Journal

13

General Journal (Transactions)

10

General Journal (Adjustments)

14

General Journal (Closings)

8

Inventory Control Sheet

10

Schedule of Accounts Receivable
6

Schedule of Accounts Payable
6

General Ledger

10

Worksheet

6

Income Statement

12

Statement of Owner’s Equity

6

Balance Sheet

16

Post-Closing Trial Balance

4

Total Score

150

Comments:

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