Week 1 acct | Accounting homework help

EXERCISES: SET B AND CHALLENGE EXERCISES

Visit the book’s companion website, at www.wiley.com/college/weygandt, and choose the Student Companion site to access Exercises: Set B and Challenge Exercises.

Problems: Set A 251

  PROBLEMS: SET A

P5-1A Kern’s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern’s inventory con- sisted of books purchased for $1,800. During June, the following merchandising transac- tions occurred.

Journalize purchase and sales transactions under a perpetual inventory system.

(LO 2, 3)

 June 1

3

6

9 15 17

20

24 26 28

30

Purchased books on account for $1,600 from Binsfeld Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.

Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440.

Received $100 credit for books returned to Binsfeld Publishers.

Paid Binsfeld Publishers in full, less discount.

Received payment in full from Reading Rainbow.

Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080.

Purchased books on account for $1,800 from McGinn Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date.

Received payment in full from Rapp Books.

Paid McGinn Publishers in full, less discount.

Sold books on account to Baeten Bookstore for $1,600. The cost of the books sold was $970.

Granted Baeten Bookstore $120 credit for books returned costing $72.

Kern’s Book Warehouse’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Reve- nue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions

Journalize the transactions for the month of June for Kern’s Book Warehouse using a per- petual inventory system.

P5-2A Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $5,000 and Owner’s Capital of $5,000.

Journalize, post, and prepare a partial income statement.

(LO 2, 3, 5)

 May 1 2 5 9

10 11 12 15

17

19 24 25

Purchased merchandise on account from Braun’s Wholesale Supply $4,200, terms 2/10, n/30.

Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300.

Received credit from Braun’s Wholesale Supply for merchandise returned $300.

Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.

Paid Braun’s Wholesale Supply in full, less discount.

Purchased supplies for cash $400.

Purchased merchandise for cash $1,400.

Received refund for poor quality merchandise from supplier on cash purchase $150.

Purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30.

Paid freight on May 17 purchase $130.

Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000. Purchased merchandise from Lumley, Inc. $620, FOB destination, terms 2/10, n/30.

    252 5 Accounting for Merchandising Operations

27 Paid Valley Distributors in full, less discount.

29 Made refunds to cash customers for defective merchandise $70. The returned

merchandise had a fair value of $30.

31 Sold merchandise on account $1,000 terms n/30. The cost of the merchandise

sold was $560.

Renner Hardware’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 301 Owner’s Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions

(a) Journalize the transactions using a perpetual inventory system.

(b) Enter the beginning cash and capital balances and post the transactions. (Use J1 for

the journal reference.)

(c) Prepare an income statement through gross profit for the month of May 2017.

P5-3A Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the com- pany’s fiscal year on November 30, 2017, the following accounts appeared in two of its trial balances.

(c) Gross profit $2,379

Prepare financial statements and adjusting and closing entries.

(LO 4, 5)

Accounts Payable

Accounts Receivable

Accumulated Depr.—Equip.

Cash 26,00026,000PrepaidInsurance 10,5003,500 Cost of Goods Sold 518,000 518,000 Property Tax Expense 2,500 Freight-Out 6,500 6,500 Property Taxes Payable 2,500 Equipment 146,000146,000RentExpense 15,00015,000

Unadjusted

Adjusted

Unadjusted

Adjusted

    Depreciation Expense Insurance Expense Interest Expense Interest Revenue Inventory

(a) Net income $32,100 Owner’s capital $123,800 Total assets $193,000

Journalize, post, and prepare a trial balance.

(LO 2, 3, 4)

6,400

2,000 32,000

Instructions

11,000 7,000 6,400 2,000

32,000

Salaries and Wages Expense Sales Revenue

Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Utilities Expense

96,000 720,000 6,500

8,000 8,500

96,000 720,000 11,000 4,500 8,000 8,500

$ 25,200 30,500 34,000

$ 25,200 30,500 45,000

Notes Payable Owner’s Capital Owner’s Drawings

$ 37,000 101,700 10,000

$ 37,000 101,700 10,000

(a) Prepare a multiple-step

fied balance sheet. Notes payable are due in 2020.

(b) Journalize the adjusting entries that were made. (c) Journalize the closing entries that are necessary.

P5-4A Yolanda Hagen, a former disc golf star, operates Yolanda’s Discorama. At the begin- ning of the current season on April 1, the ledger of Yolanda’s Discorama showed Cash $1,800, Inventory $2,500, and Owner’s Capital $4,300. The following transactions were completed during April.

income statement, an owner’s equity statement, and a classi-

 Apr. 5

7

9 10

12

14 17 20

21 27 30

Purchased golf discs, bags, and other inventory on account from Mumford Co. $1,200, FOB shipping point, terms 2/10, n/60.

Paid freight on the Mumford purchase $50.

Received credit from Mumford Co. for merchandise returned $100.

Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of $540.

Purchased disc golf shirts and other accessories on account from Saucer Sportswear $670, terms 1/10, n/30.

Paid Mumford Co. in full, less discount.

Received credit from Saucer Sportswear for merchandise returned $70.

Made sales on account for $610, terms n/30. The cost of the merchandise sold was $370.

Paid Saucer Sportswear in full, less discount.

Granted an allowance to customers for clothing that was flawed $20. Received payments on account from customers $900.

The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner’s Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Buy An Essay, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Buy An Essay has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

Essay Writing Services

At Buy An Essay, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.