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    Accounting problems: BE5-1, BE5-5, BE5-10, E5-1, E5-4, E8-1,

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    I have several questions that need to be answered. Attached is a excel spreadsheet for guidance.

    Presented below are the components in Clearwater Company's income statement.
    Determine the missing amounts.

    Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income
    (a) $75,000 ? $28,600 ? $10,800
    (b) $108,000 $70,000 ? ? $29,500
    (c) ? $71,900 $99,600 $39,500 ?

    Piccola Company provides the following information for the month ended October 31, 2006:

    Sales on credit $280,000
    cash sales $100,000
    sales discount $13,000
    sales returns & allowances $21,000

    Prepare the sales revenues section of the income statement based on this information.

    Assume that E. Guard Company uses a periodic inventory system and has these account balances:

    Purchases $400,000
    Purchase Returns & Allowances $11,000
    Purchase Discounts $8,000
    Freight-in $16,000

    Determine net purchases and cost of goods purchased.

    Information related to Gilberto Co. is presented below:

    1. On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.
    2. On April 6, paid freight costs of $900 on merchandise purchased from Allman.
    3. On April 7, purchased equipment on account for $26,000
    4. On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise
    5. On April 15, paid the amount due to Allman Company in full.

    Instructions
    (a) Prepare the journal entries to record thse transactions on the books of Gilberto Co, under a perpetual inventory system.
    (b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15.
    Prepare the journal entry to record this payment.

    Presented below are transactions related to Rebecca Company.

    (1) On December 3, Rebecca Company sold $480,000 of merchandise to Simoins Co., terms 2/10, n/30, FOB shipping point.
    The cost of the merchandise sold was $350,000.
    (2) On December 8, Simonis Co. was granted an allowance of $27,000 for merchandise purchased on December 3.
    (3) On December 13, Rebecca Company received the balance due from Simonis Co.

    Instructions
    (a) Prepare the journal entries to record these transactions on the books of Rebecca Company using a perpetual inventory system.
    (b) Assume that Rebecca Company received the balance due from Simonis Co. on January 2, of the following year instead of
    December 13. Prepare the journal entry to record the receipt of payment on January 2.

    Sue Ernesto is the owner of Ernesto's Pizza. Ernesto's is operated strictly on a carryout basis.
    Customers pick up their orders at a counter where a clerk exchanges the pizza for cash.
    While at the counter, the customer can see other employees making the pizza and the large
    ovens in which the pizzas are baked.

    Instructions
    Identify the six principles of internal control and give an example of each principle that you might
    observe when picking up your pizza. (Note: It may not be possible to observe all the principles.)

    The following control procedures are used at Sandwich Company for over-the-counter cash receipts.

    1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attache case
    in the stock room until it is deposited in the bank.
    2. All over-the-counter receipts are registered by three clerks who use a cash register with a single cash drawer.
    3. The company accountant makes the bank deposit and then records the day's receipts.
    4. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.
    5. Cashiers are experienced; they are not bonded.

    Global Graphics Company was organized on January 1, 2002. At the end of the first 6 months
    of operations, the trial balance contained the following accounts.

    Debits Credits
    Cash $9,500 Graphic Revenue 52,100
    Notes Payable $17,000 Salaries Expense 30,000
    Accounts Receivable 14,000 Consulting Revenue 6,000
    Accounts Payable 9,000 Supplies Expense 3,700
    Equipment 45,000 Advertising Expense 1,900
    Common Stock 25,000 Rent Expense 1,500
    Insurance Expense 1,800 Utilities Expense 1,700

    Debit Balance Total $109,100
    Credit Balance Total $109,100

    Analysis reveals the following additional data.

    1. The $3,700 balance in Supplies Expense represents supplies purchased in January. At June 30,
    $1,300 of supplies was on hand.
    2. The note payable was issued on February 1. It is a 12%, 6-month note.
    3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2002
    4. Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,100
    are unearned.
    5. Graphic revenue earned but unbilled at June 30 totals $2,000.
    6. Depreciation is $2,000 per year.

    Instructions
    (a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.)
    (b) Prepare an adjusted trial balance.
    (c) Prepare an income statement and a retained earnings statement for the 6 months ended June 30 and
    a balance sheet at June 30.

    March 18, Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies
    March 20, Paid $1,500 cash for employee salaries.
    March 21, Collected $1,600 cash from customers billed on March 14.
    March 28, Billed customers $2,500 for cleaning services.
    March 31, Paid gas and oil for month on truck $200.
    March 31, Declared and paid a $700 cash dividend.

    The chart of accounts for Ewok's Carpet Cleaners Inc. contains the following accounts:

    No. 101 Cash No. 320 Retained Earnings
    No. 112 Accounts Receivable No. 350 Income Summary
    No. 128 Cleaning Supplies No. 400 Service Revenue
    No. 130 Prepaid Insurance No. 633 Gas & Oil Expense
    No. 157 Equipment No. 634 Cleaning Supplies Expense
    No. 158 Accumulated Depreciation - Equipment No. 711 Depreciation Expense
    No. 201 Accounts Payable No. 722 Insurance Expense
    No. 212 Salaries Payable No. 726 Salaries Expense
    No. 311 Common Stock

    Instructions
    (a) Journalize and post the March transactions. Use page J1 for the journal and the three column form of account.
    (b) Prepare a trial balance at March 31 on a work sheet.
    (c) Enter the following adjustments on the work sheet and complete the work sheet.
    (1) Earned but unbilled revenue at March 31 was $600.
    (2) Depreciation on equipment for the month was $250.
    (3) One-twelfth of the insurance expired.
    (4) An inventory count shows $400 of cleaning supplies on hand at March 31.
    (5) Accrued but unpaid employee salaries were $500.
    (d) Journalize and post adjusting entries. Use page J2 for the journal.
    (e) Prepare the income statement and a retained earnings statement for March and a classified
    balance sheet at March 31.
    (f) Journalize and post closing entries and complete the closing process. Use page J3 for the jounal.
    (g) Prepare a post-closing trial balance at March 31.

    The trial balance of Brennan Fashion Center contained the following accounts at November 30,
    the end of the company's fiscal year.

    BRENNAN FASHION CENTER
    Trial Balance
    30-Nov-02
    Debit Credit
    Cash $28,700
    Accounts Receivable 33,700
    Merchandise Inventory 45,000
    Store Supplies 5,500
    Store Equipment 85,000
    Accumulated Depreciation?Store Equipment $18,000
    Delivery Equipment 48,000
    Accumulated Depreciation?Delivery Equipment 6,000
    Notes Payable 51,000
    Accounts Payable 48,500
    Common Stock 80,000
    Retained Earnings 30,000
    Dividends 12,000
    Sales 759,200
    Sales Returns and Allowances 4,200
    Cost of Goods Sold 497,400
    Salaries Expense 140,000
    Advertising Expense 26,400
    Utilities Expense 14,000
    Repair Expense 12,100
    Delivery Expense 16,700
    Rent Expense 24,000
    Totals $992,700 $992,700

    Adjustment data:
    1. Store supplies on hand totaled $3,500.
    2. Depreciation is $9,000 on the store equipment and $7,000 on the delivery equipment.
    3. Interest of $11,000 is accrued on notes payable at November 30.
    4. Merchandise inventory actually on hand is $44,400.

    Other data:
    1. Salaries expense is 70% selling and 30% administrative.
    2. Rent expense and utilities expense are 80% selling and 20% administrative.
    3. $30,000 of notes payable are due for payment next year.
    4. Repair expense is 100% administrative.

    Instructions
    *(a) Enter the trial balance on a work sheet, and complete the work sheet.
    (b) Prepare a multiple-step income statement and a retained earnings statement for the year
    and a classified balance sheet as of November 30, 2002.
    (c) Journalize the adjusting entries.
    (d) Journalize the closing entries.
    (e) Prepare a post-closing trial balance.

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    Solution Preview

    Presented below are the components in Clearwater Company's income statement.
    Determine the missing amounts.

    Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income
    (a) $75,000 ? $28,600 ? $10,800
    (b) $108,000 $70,000 ? ? $29,500
    (c) ? $71,900 $99,600 $39,500 ?

    Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income
    (a) $75,000 $46,400 $28,600 $17,800 $10,800
    (b) $108,000 $70,000 $38,000 $8,500 $29,500
    (c) $171,500 $71,900 $99,600 $39,500 $60,100

    Assume that E. Guard Company uses a periodic inventory system and has these account balances:

    Purchases $400,000
    Purchase Returns & Allowances $11,000
    Purchase Discounts $8,000
    Freight-in $16,000

    Determine net purchases and cost of goods purchased.

    Purchases 400,000
    Less: Purchase Returns and Allowances 11,000
    Purchase Discounts 8,000
    Net purchases 381,000
    Add: Freight-in 16,000
    Cost of goods purchased 397,000

    Piccola Company provides the following information for the month ended October 31, 2006:

    Sales ...

    Solution Summary

    This solution is comprised of a detailed explanation to determine the missing amount for Clearwater Company's income statement, prepare the sales revenues section of the income statement for Piccola Company, determine net purchases and cost of goods purchased for E. Guard, prepare the journal entries to record the transactions on the books of Gilberto Co, under a perpetual inventory system, identify the six principles of internal control and give an example of each principle that you might observe when picking up your pizza, enter the trial balance on a work sheet, and complete the work sheet, prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of November 30, 2002, journalize the adjusting entries and the closing entries, and prepare a post-closing trial balance.

    $2.19

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