College Accounting Comprehensive Review Problem II Paradigm 5th edition

College Accounting Comprehensive Review Problem II Paradigm 5th edition in $85 onlyCollege Accounting- Comprehensive Review Problem II - Paradigm 5th edition

CRPII(2) – Mills sporting Goods store – College Accounting – Comprehensive Review Problem II – paradigm 5th edition

Mills Sporting Goods Store -College Accounting – Comprehensive Review Problem II – paradigm 5th edition

You have now completed the accounting cycle for a merchandising business and are ready to try to put it all together in this second comprehensive review problem.

You are keeping the accounting records for Cindi Mills, owner of Mills Sporting Goods Store. You begin with the balances in her accounts and go through the accounting cycle for two months.

Directions:

1. Open accounts in the general ledger with the following balances as of January 1, 20X1

Account Balance

111 Cash $6,560

112 Accounts Receivable 2,955

113 Office Supplies 825

114 Store Supplies 1,915

115 Merchandise Inventory 13,540

116 Prepaid Insurance 750

121 Office Equipment 9,500

121.1 Accumulated Depreciation-Office Equipment 2,600

122 Store Equipment 16,600

122.1 Accumulated Depreciation-Store Equipment 4,000

123 Delivery Equipment 13,000

123.1 Accumulated Depreciation-Delivery Equipment 7,000

211 Accounts Payable 3,880

311 Cindi Mills, Capital 48,165

312 Cindi Mills, Drawing

313 Income Summary

411 Sales

412 Sales Returns and Allowances

413 Sales Discounts

511 Purchases

512 Purchases Returns and Allowances

513 Purchases Discounts

514 Freight in

611 Salaries Expense

612 Rent Expense

613 Utilities Expense

614 Office Supplies Expense

615 Store Supplies Expense

616 Insurance Expense

617 Depreciation Expense-Office Equipment

618 Depreciation Expense-Store Equipment

619 Depreciation Expense-Delivery Equipment

2. Open accounts in the accounts receivable ledger with the following balances as of January 1, 20X1:

Customer Name Balance

Henry Galvin $1,025

Lee Maddox 755

Neagle Co. 1,175

Smitz, Inc -0-

3. Open accounts in the accounts payable ledger with the following balances as of January 1, 20X1:

Creditor Name Balance

W. Bedford Co. $1,365

Jones Co. -0-

Lemke Brothers 1,540

Wohlers, Inc. 975

4.Record the January transactions in a general journal (page 12), a one column sales journal (page26), a purchases journal (page 10), a five-column cash receipts journal (page 11), or a four column cash payments journal (page 9). All credit sales carry terms of 2/10, n/30. Freight on all purchases is charged to the freight in account.

20X1

January

2 Paid rent for the month, $1.070, Check No. 234

2 Sold merchandise to Smitz, Inc., $765, Invoice No. 176

4 Collected the balance due from Henry Galvin, less 2% discount

5 Sold merchandise to Henry Galvin, $1,670, Invoice No. 177

6 Collected the balance due from Neagle Co., less 2% discount

7 Issued a credit memorandum to Henry Galvin for the return of defective merchandise sold on January 5, $210

7 Purchased merchandise from Lemke Brothers, $1,045; terms 2/10,n/30; Invoice No. 187

8 Paid W. Bedford Co. the balance due, less 2% discount; Check No. 235

9 Paid Wohlers, Inc., the balance due, less 1% discount; Check No. 236

10 Returned defective merchandise purchased on January 7 from Lemke Brothers, receiving a credit memorandum for $105

10 Collected the balance due from Lee Maddox, Less 2% discount

11 Paid Lemke Brothers the January 1 balance; no discount; Check No 237

12 Received a check from Smitz, Inc., for the amount due from the sale of January 2

14 Purchased merchandise from Jones Co. $2,550; terms, 2/10,n/30; Invoice No. 188

15 Received a check from Henry Galvin for the amount due from the sale of January 5, less the return of January 7

15 Recorded cash sales for the first half of January, $1,665

15 Cindi invested an additional$3,000 cash in the firm

16 Purchased office equipment from Wohlers, Inc., $4,400; terms, 2/30,n/60 Invoice No. 189

17 Sold merchandise to Lee Maddox, $950, Invoice No. 178

17 Paid Lemke Brothers the amount due from the purchase of January 7, less the return of January 10; Check No. 238

18 Purchased office supplies from W. Bedford Co., $860; terms, n/30; Invoice No. 190

19 Returned defective office supplies to W. Bedford Co., receiving a credit memorandum for $110

20 Purchased store supplies from Jones Co.,$555; terms, n/30; Invoice No. 191

22 Cindi invested a used truck valued at $4,700 in the business

23 Sold merchandise to Neagle Co., $820, Invoice No. 179

24 Paid the balance due to Jones Co. from the purchase of January 14; Check No. 239

24 Cindi wrote check No. 240 to pay her home phone bill, $205

25 Sold Merchandise to Smitz, Inc., $1,995, Invoice No. 180

26 Sold store supplies to another firm at cost for cash, $110

27 Issued a credit memorandum to Smitz, Inc., for a shortage from the sale of January 25, $75

27 Purchased merchandise from Jones Co., $750; terms, 2/10,n/30; Invoice No. 192

29 Paid January’s electric bill, $595, Check No. 241

31 Recorded cash sales for the second half of January, $2,445

31 Paid freight on January purchases, $450, Check No. 242

31 Paid salaries for January, $4,450, Check No. 243

5. Total all special journals

6. Post all items that need to be posted

7. Prepare a trial balance on a work sheet as of January 31, 20X1

8. Prepare schedules of accounts receivable and accounts payable

9. Complete the worksheet. Adjustment data for January 31 are as follows:

(a) Office Supplies on hand, $830

(b) Store Supplies on hand, $750

(c) Insurance Expired, $20

(d) Depreciation of office equipment, $90

(e) Depreciation of store equipment, $125

(f) Depreciation of delivery equipment, $250

(g) Merchandise Inventory (beginning), $13,540

(h) Merchandise Inventory (ending), $12,210

10.Record and post adjusting entries as of January 31.

11. Record and post closing entries as of January 31.

12. Prepare a January 31 post-closing trial balance.

13. Prepare an income statement for the month of January. All salaries are sales salaries.

14. Prepare a statement of owner’s equity for the month of January

15. Prepare a January 31 balance sheet

16. Record the following February transactions

20X1

February

1 Paid rent for the month, $1,070, Check No. 244

2 Purchased merchandise from Lemke Brothers, $740; terms, 2/10,n/30; Invoice No. 193

3 Returned merchandise purchased from Lemke Brothers on February 2, receiving a credit memorandum for $75

3 Collected the balance due from Lee Maddox

4 Collected the balance due from Smitz, Inc., for the sale of January 25 less the credit of January 27 and less the 2% discount

5 Cindi took home $40 of office supplies for her personal use

6 Sold merchandise to Henry Galvin, $2,140, Invoice No. 181

6 Paid Jones Co. the balance due on purchases of $555 and $750, less a 2% discount on the $750 purchase; Check No. 245

7 Collected the balance due from Neagle Co.

8 Issued a credit memorandum to Henry Galvin for damaged merchandise sold on February 6, $195

9 Purchased merchandise for cash, $375, Check No. 246

11 Paid Lemke Brothers for the balance due from the purchase of February 2, less the return of February 3; Check No. 247

11 Returned $20 of the merchandise purchased on February 9, receiving a cash refund

12 Sold merchandise to Lee Maddox, $1,185, Invoice No. 182

13 Cindi wrote Check No. 248 for personal expenses, $350

14 Recorded cash sales for the first half of the month, $3,095

15 Paid Wohlers, Inc., the balance due, less 2% discount, Check No. 249

16 Received a check from Henry Galvin for the amount due from the sale of February 6, less the return of February 8

17 Sold office supplies for cash, $85

17 Paid W. Bedford Co. the balance due for the purchase of January 18, less the return of January 19; Check No. 250

19 Purchased store supplies from W. Bedford Co. $340; terms, n/30; Invoice No. 194

20 Returned $30 of the store supplies purchased on February 19, receiving credit

21 Purchased merchandise from Lemke Brothers, $940; terms, 2/10,n/30; Invoice No. 195

22 Sold merchandise to Neagle Co., $1,095; Invoice No. 183

24 Purchased merchandise from Jones Co., $1,045; terms, 2/10,n/30; Invoice No 196

25 Sold merchandise to Smitz, Inc., $1,755, Invoice No. 184

26 Purchased store equipment from Wohlers, Inc., $2700; terms 2/30,n/60; Invoice No. 197

27 Paid the electric bill for February, $550, Check No. 251

28 Recorded cash sales for the second half of the month, $2,985

28 Paid freight on February purchases, $435, Check No. 252

28 Paid salaries for February, $4,450, Check No. 253

17.Total all special journals.

18. Post all items that need to be posted

19. Prepare a trial balance on a work sheet as of February 28, 20X1

20. Prepare schedules of accounts receivable and accounts payable.

21. Complete the work sheet. Adjustment data for February 28 are as follows

(a) Office Supplies on hand, $355

(b) Store Supplies on hand, $275

(c) Insurance Expired, $20

(d) Depreciation of office equipment, $90

(e) Depreciation of store equipment, $125

(f) Depreciation of delivery equipment, $250

(g) Merchandise Inventory (beginning), $12.210

(h) Merchandise Inventory (ending), $12,780

22.Record and post adjusting entries as of February 28.

23. Record and post closing entries as of February 28.

24. Prepare a February 28 post-closing trial balance.

25. Prepare an income statement for the month of February. All salaries are sales salaries.

26. Prepare a statement of owner’s equity for the month of February.

27. Prepare a February 28 balance sheet.

Check figures for January only.

Net Loss: 4,946.75 Total Assets: 57,168.25 Cash Balance: 4,823.25

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