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    Dindorf Company: Accounting Cycle

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    26. DINDORF COMPANY

    THE ACCOUNT BALANCES IN THE LEDGER OF THE DINDORF COMPANY ON JANUARY 31, (THE END OF ITS FISCAL YEAR) BEFORE
    ADJUSTMENTS WERE AS FOLLOWS;

    DEBIT BALANCES CREDIT BALANCES

    CASH AND CASH EQUIVALENTS $119,115 ACCUMULATED DEPRECIATION ON STORE EQUIPMENT $37,300
    ACCOUNTS RECEIVABLE 162,500 ACCOUNTS PAYABLE 118,180
    MERCHANDISE INVENTORY 700,680 NOTES PAYABLE 143,000
    STORE EQUIPMENT 215,000 COMMON STOCK 300,000
    SUPPLIES INVENTORY 15,475 RETAINED EARNINGS 122,375
    PREPAID INSURANCE 38,250 SALES REVENUES 716,935
    SELLING EXPENSE 24,900
    SALES SALARIES 105,750
    MISCELLANEOUS GENERAL EXPENSE 31,000
    SALES DISCOUNTS 6,220
    INTEREST EXPENSE 9,300
    SOCIAL SECURITY TAX EXPENSE 9,600

    TOTAL $1,437,790 $1,437,790

    THE DATA FOR THE ADJUSTMENTS ARE:
    1. THE COST OF MERCHANDISE SOLD, $302,990
    2. DEPRECIATION ON STORE EQUIPMENT $12,750
    3. SUPPLIES INVENTORY, JANUARY 31, $5,210 (PURCHASE OF SUPPLIES DURING THE YEAR WERE DEBITED
    TO THE SUPPLIES INVENTORY ACCOUNT
    4. EXPIRED INSURANCE, $4,660
    5. INTEREST ACCRUED ON NOTES PAYABLE, $3,730
    6. SALES SALARIES EARNED BUT NOT PAID TO EMPLOYEES, $3,575
    7. INTEREST EARNED ON SAVINGS ACCOUNTS, BUT NOT RECORDED $390.

    REQUIRED
    1. SET UP T ACCOUNTS WITH BALANCES GIVEN ABOVE
    2. JOURNALIZE AND POST ADJUSTING ENTRIES, ADDING OTHER T ACCOUNTS AS NECESSARY.
    3. JOURNALIZE AND POST CLOSING ENTRIES.
    4. PREPARE AN ADJUSTED TRIAL BALANCE
    5. PREPARE IN GOOD FORMAT AN INCOME STATEMENT, A STATEMENT OF RETAINED EARNINGS, AND A BALANCE
    SHEET ALL AS OF JANUARY 31,

    © BrainMass Inc. brainmass.com October 9, 2019, 9:58 pm ad1c9bdddf
    https://brainmass.com/business/trial-balance/dindorf-company-accounting-cycle-203469

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    26. DINDORF COMPANY

    THE ACCOUNT BALANCES IN THE LEDGER OF THE DINDORF COMPANY ON JANUARY 31, (THE END OF ITS FISCAL YEAR) BEFORE
    ADJUSTMENTS WERE AS FOLLOWS;

    DEBIT BALANCES CREDIT BALANCES

    CASH AND CASH EQUIVALENTS $119,115 ACCUMULATED DEPRECIATION ON STORE EQUIPMENT
    ACCOUNTS RECEIVABLE 162,500 ACCOUNTS PAYABLE
    MERCHANDISE INVENTORY 700,680 NOTES PAYABLE
    STORE EQUIPMENT 215,000 COMMON STOCK
    SUPPLIES INVENTORY 15,475 RETAINED EARNINGS
    PREPAID INSURANCE 38,250 SALES REVENUES
    SELLING EXPENSE 24,900
    SALES SALARIES 105,750
    MISCELLANEOUS GENERAL EXPENSE 31,000
    SALES DISCOUNTS 6,220
    INTEREST EXPENSE 9,300
    SOCIAL SECURITY TAX EXPENSE 9,600

    TOTAL $1,437,790

    THE DATA FOR THE ADJUSTMENTS ARE:
    1. THE COST OF MERCHANDISE SOLD, $302,990
    2. DEPRECIATION ON STORE EQUIPMENT $12,750
    3. SUPPLIES INVENTORY, JANUARY 31, $5,210 (PURCHASE OF SUPPLIES DURING THE YEAR WERE DEBITED
    TO THE SUPPLIES INVENTORY ACCOUNT
    4. EXPIRED INSURANCE, $4,660
    5. INTEREST ACCRUED ON NOTES PAYABLE, $3,730
    6. SALES SALARIES EARNED BUT NOT PAID TO EMPLOYEES, $3,575
    7. INTEREST EARNED ON SAVINGS ACCOUNTS, BUT NOT RECORDED $390.

    REQUIRED
    1. SET UP T ACCOUNTS WITH BALANCES GIVEN ABOVE
    2. JOURNALIZE AND POST ADJUSTING ENTRIES, ADDING OTHER T ACCOUNTS AS NECESSARY.
    3. JOURNALIZE AND POST CLOSING ENTRIES.
    4. PREPARE AN ADJUSTED TRIAL BALANCE
    5. PREPARE IN GOOD FORMAT AN INCOME STATEMENT, A STATEMENT OF RETAINED EARNINGS, AND A BALANCE
    SHEET ALL AS OF JANUARY 31,

    1. We first seup the T- accounts. We transfer the balances given above to the T-accounts
    We then pass the adjusting and closing entries. The adjusting entries are with the alphabets
    and the closing entries are with numerals

    Cash ...

    Solution Summary

    The solution explains the adjusting entries, preparation of financial statements and the closing entries for Dindorf Company

    $2.19