OC Investing in Roads, Millenials Driving Less – Weekend Linkage …

OC Investing in Roads, Millenials Driving Less – Weekend Linkage …

Image via eyetwist/Curbed LA flickr pool · Development around Flower St. worries long time residents · Disneyland continues to wring out every last dollar from patrons · Santa Monica…
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5 investing classics to make you a better trader

5 investing classics to make you a better trader

MIAMI, Fla. (MarketWatch) — If you're new to the stock market, you may want to know what books you should read to get started as a trader. Here are five of my favorites that belong on every trader's bookshelf: 1. 'Reminiscences of a Stock Operator' by
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Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

William asks…

Anyone good at journal entries, and want to help?

February 1Paid $3,750 accounts payable balance due to a supplier.
March 15Received $2,500 partial payment on a $5,000 accounts receivable balance. Wrote off the rest of the account as uncollectible.
April 1
April 15Purchased on account 2,500 units merchandise for resale at $21.50 per unit, with 2/10, n/30 terms.Paid the invoice for April 1 purchase

October 10Sold 700 units of merchandise for a cash price of $40/unit.

November 1Borrowed $20,000 at 6% interest for 5 years with annual payments of principal and interest on October 31. Used the loan proceeds plus cash to purchase a $25,000 delivery truck.

December 1Bought back 500 shares of outstanding stock, paying $15/share.

December 5Sold 2,400 units of merchandise on account for $41/unit. Paymen
t terms on the invoice were 1/10, n/30.

December 7Of the merchandise sold on December 5, 50 units were returned.

December 15Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January.

December 15Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3.

December 18Purchased office supplies of $1,600 on account.

December 31Recorded depreciation for the year
Buildings have a 30-year life, a $6,000 residual value and use straight-line depreciation
Equipment has a 5-year life, no residual value and use double-declining balance depreciation
NOTE: Equipment was all purchased January 1, 2011
Vehicles have a 5-year life, no residual value and use straight-line depreciation

December 31The allowance for doubtful accounts balance is estimated as follows:
2% of current balances are estimated as uncollectible
20% of past-due balances are estimated as uncollectible.

December 31A count of office supplies shows $550 still on hand on December 31.
January 2, 2013Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period.

financi4 answers:

I doubt if you will get a good answer to this since the question doesn’t seem complete. Here’re a couple of reasons why:

April 1 – no transaction details were given

April 15 Paid the invoice for April 1 purchase – this cannot be answered since no details for Apr 1 were given

April 15 Purchased on account 2,500 units merchandise
October 10 Sold 700 units of merchandise
December 5 Sold 2,400 units of merchandise
Huh? How can you sell more than you purchased?

December 31 Recorded depreciation for the year
How can this be done when we don’t know the cost of the company assets?

And so on.

David asks…

Accounting help 10 pts!?

1.Which of the following transactions is recorded in the purchases journal?
a.purchase of store supplies on account
b.return of damaged office equipment
c.purchase of store supplies for cash
d.purchase of office equipment for cash

2.Which of the following transactions is recorded in the revenue journal?
a.sale of excess office equipment for cash
b.rendering services for cash
c.rendering services on account
d.sale of excess office equipment on account

3.The objectives of internal control are to
a.control the internal organization of the accounting department personnel and equipment
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.prevent fraud, and promote the social interest of the company
d.provide control over “internal-use only” reports and employee internal conduct

financi4 answers:

1.Which of the following transactions is recorded in the purchases journal?
A.purchase of store supplies on account

2.Which of the following transactions is recorded in the revenue journal?
C.rendering services on account

3.The objectives of internal control are to
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with

Robert asks…

Accounting help 10 pts!?

1.Which of the following transactions is recorded in the purchases journal?
a.purchase of store supplies on account
b.return of damaged office equipment
c.purchase of store supplies for cash
d.purchase of office equipment for cash

2.Which of the following transactions is recorded in the revenue journal?
a.sale of excess office equipment for cash
b.rendering services for cash
c.rendering services on account
d.sale of excess office equipment on account

3.The objectives of internal control are to
a.control the internal organization of the accounting department personnel and equipment
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with
c.prevent fraud, and promote the social interest of the company
d.provide control over “internal-use only” reports and employee internal conduct

financi4 answers:

1.Which of the following transactions is recorded in the purchases journal?
A.purchase of store supplies on account

2.Which of the following transactions is recorded in the revenue journal?
C.rendering services on account

3.The objectives of internal control are to
b.provide reasonable assurance that operations are managed to achieve goals, financial reports are accurate, and laws and regulations are complied with

John asks…

Need help with some Jurnal entries for the month of march?

Mar 1Joan also invests her used vehicle into the business. She estimates that its fair value is $15,000. Joan estimates that the vehicle will be useful to the business for four years, at which time its residual value will be $3,000. It will only be used for business purposes.
Mar 1Joan signs a two year lease with Dungaree Property Management for the use of a space for her show room and warehouse storage. The show room represents half the leased area. The lease is effective March 1, 2009. Occupancy will begin immediately, and the amount paid for the lease is $48,000.

Mar 1Joan needs to acquire general liability insurance and protect her inventory. She purchases an insurance policy for the business from RPC Insurance Brokers for $6,000. The term of coverage is March 1, 2009 to February 28, 2010. She hires a security company to monitor the premises after-hours. They will invoice quarterly.

Mar 2Joan purchases a computer system and software for her business. The system costs $12,000, which Joan financed with a two year note payable. Interest on the note will be paid every three months at an annualized interest rate of 9%. Joan estimates that the computer equipment will be useful to the business for five years, at which time its residual value will be $0.

Mar 2Joan purchases used shelving and racks costing $5,000 from BGH Library Services. BGH offers credit terms of 1/15, net 30. Joan estimates this store equipment will be useful to the business for four years, at which time its residual value will be $1000.

Mar 2Joan purchases on account from Grand & Toy $500 of office supplies.

Mar 3Joan purchases on account from a manufacturer 20 desks with hutch bookcases at a cost of $1000 each, 20 oak credenzas at a cost of $400 each, and 40 art prints at $200 each. The manufacturer offers credit terms of 2/10, net 30 to its customers. Joan picks up the inventory from their warehouse in north east Calgary, and transports it to her show
room.

Mar 5Joan purchases on account from another wholesaler 100 sets of the latest anti-glare monitor covers and document stands. These items of inventory had a total cost of $10,000. The wholesaler offers credit terms of 3/5, net 30 to its customers. Joan picks up the inventory from the wholesaler’s warehouse in south east Calgary, and transports it to her show room.
Mar 10Joan records one journal entry for the sales from the first week of business. All of the sales were cash sales, except for a large sale on Mar 9 to Spaces Direct Co. on credit. Cash sales totalled $10,000. The list price of the sale to Spaces Direct Co. is $4,800, but they are given a 10% trade discount. The cost of the inventory sold was $12,000.

Mar 12Joan interviews and hires a salesperson, Cheech Marin, to provide in-store sales. Tim will begin working on Thursday Mar 12, and will work three days a week (Thursday through Saturday) at a salary of $150/day (assume no source deductions). Pay day will be every second Saturday beginning Saturday Mar 21, and will include all days worked up to and including the day of pay.

Mar 14Spaces Direct Co. returns some pieces from the purchase on Mar 9 (wrong colour). Joan issues a credit memo to them for the $1,400 price of the furniture (original cost of $800). They are then placed back on display for resale.

Mar 17Joan records one journal entry for the sales from the second week of business. All of the $18,000 sales were for cash. The cost of the inventory sold was $10,000.

Mar 19Payment is received from Spaces Direct Co. for the final amount owing for the Mar 9 credit sale.

Mar 22Payments are made to Grand & Toy and BGH for the Mar 2 purchases.

Mar 24Joan records one journal entry for the sales from the third week of business. All of the $4,200 sales were for cash. The cost of the inventory sold was $2,400.

Mar 21Cheech is paid his wages for his first two weeks of employment.

Mar 28Joan receives a payment of $2,000 from a local medical centre for wall hangings to be supplied in early May.

Mar 31Joan records one journal entry for the sales from the fourth week of business. All of the sales were cash sales, except for a large sale on Mar 29 to Spaces Direct Co. on credit. Cash sales totalled $5,600. The list price of the sale to Spaces Direct Co. is $2,800, but they are given a 10% trade discount. The cost of the inventory sold was $4,800.

Mar 31Joan withdraws $1,000 cash for her personal use

Additional March 31 adjusting entry information

1.A count of office supplies reveals that $410 of supplies remain in stock.
2.Joan estimates that the security service bill for March will be approximately $350.

financi4 answers:

Can u make your sentence smaller so i can understand it?

Michael asks…

where do i go for a tax id #?

financi4 answers:

Hi La Red,

I assume you want the tax id for business, because normally you can use yur social security.

Here are some info about what you need to know when getting tax id for starting a business.

Starting a business? As a new business owner; it is essential to learn federal tax responsibilities and keeping records to assist in basic start-up business decisions and in how to conduct business.

Basic federal tax responsibilities to consider before starting a business:

Determine the business structure-sole proprietor, corporation, LLC, Partnership. Register the business. If hiring employees; contact Social Security Administration-Form SS-4 to issue an Employer Identification Number -EIN#. Corporations, LLCs, partnerships will need an EIN# . E IN# is used to identify tax accounts of employers. Sole proprietors may use the social security number.
Business transactions require collecting payee’s information using form W-9 and report payments to non-employees on an “information return”.

Adopt a tax year: when you file the first income tax return you adopt a tax year. Changes to the adopted tax year can only be done with IRS approval by filing Form 1128. There may be a fee.
Calendar -January 1 through December 31 due by April 15th
Fiscal – 12 consecutive months ending in any month other than December due the 15th day of the 4th month after the end of the fiscal year.

Adopt an “accounting method”: when you file the first income tax return you adopt an accounting method and thereafter changes need IRS approval. Choose an accounting method with a set of rules to determine when and how income and expenses are reported.
*Cash method = income is reported in the tax year is received and deduct or capitalize expenses in the tax year paid.
*Accrual method = generally income is reported in the tax year is earned though paid in a later year. Deductions and capitalization of expenses are accrued in the year incurred whether or not payment is received.

TIP: An accounting method must treat income and expenses consistently year after year. It is important to establish consistency and suitable accounting principles. When running more than one business you may use a different accounting method and different tax year for each entity. Keep separate and complete set of books for each business.

Business Taxes: The business structure determines which taxes apply. There are four kind of general business taxes: income, self-employment, employ and excise taxes. The law provides penalties for failure to file tax returns, failure to pay taxes, for tax evasion, making a false statement, failure to supply tax id numbers of payees.

Business Expenses: necessary and ordinary expenses incurred in business transactions are deductible. There are rules to follow in certain allowable deductions. Business Start-Up cost could be deducted or capitalizedamortized. Please see Publication 535 for details.

Depreciation: an allowable deduction for property acquired with a substantial life of 1+ year. Sec 179 is a provision to declare a one-time total deduction of property purchased.

Business Use of Home: the business part of your home must be the exclusive principal place of business. The exclusive use exception does not apply if you use the part of the home for the storage of inventory or product samples and for a daycare facility. The purpose and the time spend in the part of home is important for some businesses.

Car-Truck Expenses or the Standard Mileage rate: make an election upon filing the first income tax return. Thereafter the law was amended and taxpayer may use interchangeably. Good recordkeeping of mileage logs is essential to be able to make this determination at the end of the year.

Recordkeeping: capable of summary accounts such as ledgers and journals. Choose any recordkeeping system suited to the business as long as it clearly shows income and expenses. For some, a “business checkbook” is the main source for entries in the business book. It is important to keep receipts as supporting document for the entries.

TIP: establish an accounting system that will grow with the business. Set up Chart of Accounts, Recordkeeping system that follows retention guidelines as provided by federal law with accounting principles. Reconciliation of checkingcash accounts. Double-Entry bookkeeping system.

Good records allow monitoring progress of the business with accurate income and expenses and a balance sheet contrasting assets liabilities and equity on a given date. It allows you to identify source of receipts, separate business and non-business, taxable from non-taxable income. Keep track of deductible expenses. Good records facilitate the filing of the return in tax season.

IRS publication 583 pg 11 states: ‘Good records can increase the likelihood of business success”.

Source: IRS.gov
Publication 538 -Accounting Periods and Methods including “Inventories”
Publication 15 (Circular E) — Employer Tax

Paul asks…

Accounting: Sales and Purchasing help!!!!?

OH please do so help me. and i’ll be deeply grateful by your help. thank you so much in advance :)))
Actually the given transactions are to be posted in a special journal too and i think if i have the correct records i might manage to do the aftermaths special journal, i’m just not sure of my answers though. plus! ofcourse there’re Value added tax included 12% for the sales and purchases made. so please add that too! and less the discounts if necessary

SALES TRANSACTIONS:

all credit sales have terms of 3/10, n/30
June

1 sold merchandise on account to R. Ben, $32,000

7 received payment from R. Ben less discounts

13 sold merchandise on account to B. Ceballus $62,000

15 borrowed $30,000 from ABC Bank by issuing a 10% note payable due in 3months

15 B. Ceballus returned $11,000 of merchandise

16 Collected amount due from B. Ceballus less returns and discounts

PURCHASE TRANSACTIONS:
merchandise purachased on account has a 2/10,n/30 credit terms

oct

1 purchased merchandise on account from Dubb Supply Company $54,000

4 paid Dubb Supply Company amount due less discounts

6 purchased merchandise on account from Campos Company $92,000

7 paid freight charges on the merchandise purchase from Campos Company $3,000

9 returned $5,000 of merchandise purchased from Campos company

10 paid Campos company amount due less returns and discount

your an angel if you’ve helped me! thanks 😀

financi4 answers:

.

Donald asks…

I need help with something if some one does not mind?

8-1A

For each of these five separate cases, identify the principle of internal control that is violated.
Recommend what the business should do to ensure adherence to principles of internal control.
1. Heather Flatt records all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts.
2. At Netco Company, Jeff and Jose alternate lunch hours. Jeff is the petty cash custodian, but if someone needs petty cash when he is at lunch, Jose fills in as custodian.
3. Nadine Cox posts all patient charges and payments at the P-Town Medical Clinic. Each night
Nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk.
4. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager, Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work.
5. Desi West’s manager has told her to reduce costs. Desi decides to raise the deductible on the plant’s property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant’s employees is a waste of money since the company has not experienced any losses due to employee theft. Desi saves the entire amount of the bonding insurance premium by dropping the bonding insurance.

8-3A

Inoke Gallery had the following petty cash transactions in February of the current year:

Feb. 2 wrote a $300 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.
5 Purchased bond paper for the copier for $10.13 that is immediately used.
9 Paid $22.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Metro uses the perpetual system to account for merchandise inventory.
12 Paid $9.95 postage to express mail a contract to a client.
14 Reimbursed Alli Buck, the manager, $58 for business mileage on her car.
20 Purchased stationery for $77.76 that is immediately used.
23 Paid a courier $18 to deliver merchandise sold to a customer, terms FOB destination.
25 Paid $15.10 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.
27 Paid $64 for postage expenses.
28 The fund had $21.23 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.
The fund amount is also increased to $400.
Required
1. Prepare the journal entry to establish the petty cash fund.
2. Prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense, merchandise inventory (for transportation-in), and office supplies expense.
Sort the payments into the appropriate categories and total the expenditures in each category.
3. Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.

8-4A

The following information is available to reconcile Clark Company’s book balance of cash with its bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company’s Cash account has a $26,193 debit balance, but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that date, but do not appear on the July 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of July 31, 2005.
2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2005.
Analysis Component
3. Assume that the July 31, 2005,

financi4 answers:

1. Heather Flatt records all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts.
Principle violated (PV) : Separate recordkeeping from custody of assets
If Heather handles receipts from customers, someone else should do the recording.

2. At Netco Company, Jeff and Jose alternate lunch hours. Jeff is the petty cash custodian, but if someone needs petty cash when he is at lunch, Jose fills in as custodian.
PV : Establish responsibilities.
Set a rule that there will be no petty cash payments when Jeff is at lunch. If this is not possible, Jeff and Jose should count the cash together when Jeff goes for lunch and when he returns, so that it can be established who paid what out and if the books balance properly during Jose’s shift.

3. Nadine Cox posts all patient charges and payments at the P-Town Medical Clinic. Each night
Nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at her desk.
PV : Apply technological controls
The back up should be in the form of something more advanced than a tape and it defeats the purpose if the computer and back-up are in the same room. In the case of a fire, both would get caught. The back-up should preferable be in another location.

4. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager, Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work.
PV : Perform regular and independent reviews.
Barto should perform regular and unannounced reviews to ensure that his instructions are being followed and controls are being adhered to. He should also bond employees.

5. Desi West’s manager has told her to reduce costs. Desi decides to raise the deductible on the plant’s property insurance from $5,000 to $10,000. This cuts the property insurance premium in half. In a related move, she decides that bonding the plant’s employees is a waste of money since the company has not experienced any losses due to employee theft. Desi saves the entire amount of the bonding insurance premium by dropping the bonding insurance.
PV : Insure Assets and Bond Key Employees.
Desi should not decide by herself to raise the deductible. She should just submit the proposal to do so to her manager and let management decide. In addition, she should reinstate the bond on the employees.

George asks…

Need help on accounting questions. Please Help?

I have a few big problems that I need help on.

1. On March 1, a business paid $3,600 for a twelve moth liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts
A) Insurance expense for the moth of March
B) Prepaid insurance as of March 31
C) Equipment rent expense for the moth of April
D) Prepaid equipment rental as of April 30

2. On January 1st, Great Designs Company had a debit balance of $1450 in the Office Supplies account. During the month, Great Designs purchased $115 and $160 of office supplies and journalized them to the Office Supplies asset account upon purchasing. On January 31st, an inspection of the office supplies cabinet shows that only $350 of Office Supplies remains in the locker. Prepare the January 31st adjusting entry for Office Supplies.

3. Based on the information below, journalize the entries for the Seller and the Buyer. Both use perpetual inventory system.

A) Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30, FOB destinations. The freight charge is $45

B) Buyer returns as defective $145 worth of the $645 merchandise received. The seller’s cost is $70

C) Buyer pays within the discount period.

4. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30, 2010. After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation on the basis of the following:

A) Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724

B) Deposits in transit not recorded by bank, $425.00

C) Bank debit memo for service charges, $35.00

D) Bank credit memo for not collected by bank, $2,475 including $75 interest

E) Bank debit memo for $256.00 NSF check from Janice Smith, a customer

F) Checks outstanding, $1,860.00

5. At the end of the current year, Accounts receivable has a balance of $900,00; Allowance for Doubtful Accounts has a debit balance of $3500; and net sales for the year total $4,000,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine:

A) The amount of the adjusting entry for bad debt expense

B) The adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense

C) The net realizable value of accounts receivable

6. Journalize the following transactions for Solley Company that occurred during 2011 and 2012:

November 14, 2011 received a $4800.00, 90-day, 9% note from Alan Hibbetts in payment of his account.

December 31, 2011 accrued interest on the Hibbetts note.

February 12, 2012 received the amount due from Hibbetts on his note.

If anybody can answer these that would be wonderful! Please help!! Thanks!!

financi4 answers:

1.a. 300
b. 3300
c. 750
d. 17250

2.(dr) Office supplies expense 1375
. (cr) Office supplies 1375

5.a. 20000
b. 900000, 3500, 20000
c. 896500

Richard asks…

You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends?

Dec. 16 Sold merchandise on credit to Hanna Seppa, Invoice No. 916, for $7,700 (cost is $4,600).
17 Received a $1,040 credit memorandum from Funk Company for the return of merchandise
received on December 15.
17 Purchased $615 of office supplies on credit from KK’s Supply Company, invoice dated
December 16, terms n10 EOM.
18 Received a $40 credit memorandum from KK’s Supply Company for the return of office
supplies received on December 17.
20 Issued a $500 credit memorandum to Bo Brown for defective (worthless) merchandise sold
on December 15 and returned for credit.
21 Purchased $6,700 of store equipment on credit from KK’s Supply Company, invoice dated
December 21, terms n10 EOM.
22 Received payment from Hanna Seppa for the December 12 sale less the discount.
23 Issued Check No. 623 to Crossland Company in payment of its December 15 invoice less
the discount.
24 Sold merchandise on credit to Shilo Jones, Invoice No. 917, for $1,200 (cost is $600).
24 Issued Check No. 624 to Funk Company in payment of its December 15 invoice less the
return and the discount.
25 Received payment from Bo Brown for the December 15 sale less the return and the discount.
26 Purchased $8,100 of merchandise from Crossland Company, invoice dated December 25,
terms 210, n60.
29 Sold a neighboring merchant five boxes of file folders (office supplies) at their cost of $50
cash.
30 Ken Choi, the sole owner of Choi Enterprises, used Check No. 625 to withdraw $2,500 in
cash from the business for personal use.
31 Issued Check No. 626 to Jamie Inman, the company’s only sales employee, in payment of
her $2,020 salary for the last half of December.
31 Issued Check No. 627 to Access Electric Company in payment of its $710 December electric
bill.
31 Cash sales for the last half of the month are $29,600 (cost is $11,200). (Cash sales are
recorded daily but are recorded only twice in this problem to reduce repetitive entries.)
Required
1. Record these transactions in the journals provided in the working papers.
2. Verify that amounts that should be posted as individual amounts to the general ledger accounts
have been posted, including posting to the customer and creditor accounts. (Such items are immediately
posted.) Foot and crossfoot the journals and make the month-end postings.
3. Prepare a December 31 trial balance and prove the accuracy of the subsidiary ledgers by preparing
schedules of both accounts receivable and accounts payable.

financi4 answers:

If I have taken over the above account, I will engage a book keeper or an account assistant to tidy up the above when the accounting period ended.

I think you should do the same my dear friend.

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Local networking group investing in the future

Local networking group investing in the future

Investing in the future is kind of what we do.” Before launching the organization, Walker and fellow co-founders Eliot Raffkind and John Carlisle took a tour of Jonathan's Place, an emergency shelter for abused children in Dallas, to see the need
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Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

Robert asks…

Accounting Journal Entry Help Please?

what would the journal entries be for the following transactions?

Sept. 1 Issued to Jim and Mary Lou Walker 20,000 shares of common stock in exchange for a total of $100,000 cash.

Sept. 1 Purchased for $180,000 all of the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. The note has an 8% interest rate and interest is payable when the note is due.

Sept. 1 Paid $9,000 to Dundee Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It.

Sept. 1 Purchased a piece of equipment for $35,000 cash.

Sept. 1 Sold for $6,000 a piece of equipment with a cost of $5,000 and no accumulated depreciation.

Sept. 4 Purchased office supplies on account from Modern Office Co., $2,000. Payment is due in 30 days. The supplies are expected to last several months.

Sept. 8 Received $20,000 cash as advance payment on equipment rental from McNomar Construction Company.

Sept. 14 Paid salaries for the first 14 days in September, $4,200. That is 14 days at $300 per day.

Sept. 15 Excluding the McNomar advance, equipment rental fees earned during the first 15 days of September amounted to $9,000 of which $8,000 was received in cash.

Sept. 17 Purchased on account from Earth Movers, Inc., $500 in parts needed for routine maintenance on a rental tractor. Payment is due in 10 days.

Sept. 23 Collected $300 of the credit sales recorded on September 15.

Sept. 25 Rented a backhoe to Mission Landscaping at a price of $100 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about 14 days.

Sept. 27 Paid for parts purchased September 17.

Sept. 28 Paid salaries for 14 days, $4,200.

Sept. 28 Declared a dividend of 20 cents per share, payable on October 15.

Sept. 29 Purchased a 12-month public-liability insurance policy for $2,700. The policy goes into effect October 1.

Sept. 30 Received a bill from Universal Utilities for the month of September, $600. Payment is due in 30 days.

Sept. 30 Equipment rental fees earned during the second half of September and received in cash amounted to $10,000.

Sept. 30 Issued a 10-year, $50,000 bond paying semiannual interest. The coupon or stated interest rate is 6% and the market rate is 6%.
Additional Info:

a.The rental equipment is being depreciated monthly by the straight-line method over a period of 10 years.
b.Office supplies on hand September 30 are estimated at $1,200.
c.During September, the company earned $12,000 of the rental fees paid by McNomar Construction Company on September 8.
d.It is estimated that Walker Rent All is subject to a combined federal and state income tax rate of 40 percent of income. These taxes will be payable December 15.

financi4 answers:

Sept. 1 Issued to Jim and Mary Lou Walker 20,000 shares of common stock in exchange for a total of $100,000 cash.

Debit Cash $100,000
Credit Common Stock $100,000

Sept. 1 Purchased for $180,000 all of the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000. The note has an 8% interest rate and interest is payable when the note is due.

Debit Equipment $180,000
Credit Cash $70,000
Credit Notes Payable $110,000

Sept. 1 Paid $9,000 to Dundee Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It.

Debit Rent Expense $3,000
Debit Prepaid Rent $6,000
Credit Cash $9,000

Sept. 1 Purchased a piece of equipment for $35,000 cash.

Debit Equipment $35,000
Credit Cash $35,000

Sept. 1 Sold for $6,000 a piece of equipment with a cost of $5,000 and no accumulated depreciation.

Debit Cash $6,000
Credit Equipment $5,000
Credit Gain on Sale of Equipment $1,000

Sept. 4 Purchased office supplies on account from Modern Office Co., $2,000. Payment is due in 30 days. The supplies are expected to last several months.

Debit Supplies Inventory $2,000
Credit Cash $2,000

Sept. 8 Received $20,000 cash as advance payment on equipment rental from McNomar Construction Company.

Debit Cash $20,000
Credit Deferred Rental Income $20,000

Sept. 14 Paid salaries for the first 14 days in September, $4,200. That is 14 days at $300 per day.

Debit Salary Expense $4,200
Credit Cash $4,200

Sept. 15 Excluding the McNomar advance, equipment rental fees earned during the first 15 days of September amounted to $9,000 of which $8,000 was received in cash.

Debit Cash $8,000
Debit Accounts Receivable $1,000
Credit Rental Income $9,000

Sept. 17 Purchased on account from Earth Movers, Inc., $500 in parts needed for routine maintenance on a rental tractor. Payment is due in 10 days.

Debit Repairs and Maintenance Expense $500
Credit Accounts Payable $500

Sept. 23 Collected $300 of the credit sales recorded on September 15.

Debit Cash $300
Credit Accounts Receivable $300

Sept. 25 Rented a backhoe to Mission Landscaping at a price of $100 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about 14 days.

No entry on Sept 25th, but on September 30th record this entry:

Debit Accounts Receivable $600
Credit Rental Income $600

Sept. 27 Paid for parts purchased September 17.

Debit Accounts Payable $500
Credit Cash $500

Sept. 28 Paid salaries for 14 days, $4,200.

Debit Salary Expense $4,200
Credit Cash $4,200

Sept. 28 Declared a dividend of 20 cents per share, payable on October 15.

Debit Dividends $4,000
Credit Dividends Payable $4,000

Sept. 29 Purchased a 12-month public-liability insurance policy for $2,700. The policy goes into effect October 1.

Debit Prepaid Insurance $2,700
Credit Cash $2,700

Sept. 30 Received a bill from Universal Utilities for the month of September, $600. Payment is due in 30 days.

Debit Utilities Expense $600
Credit Accounts Payable $600

Sept. 30 Equipment rental fees earned during the second half of September and received in cash amounted to $10,000.

Debit Cash $10,000
Credit Rental Income $10,000

Sept. 30 Issued a 10-year, $50,000 bond paying semiannual interest. The coupon or stated interest rate is 6% and the market rate is 6%.

Debit Cash $50,000
Credit Bond Payable $50,000

a. The rental equipment is being depreciated monthly by the straight-line method over a period of 10 years.

Debit Depreciation Expense $1,750 ((180,000 + 35,000 – 5,000) / 120)
Credit Accumulated Depreciation $1,750

b. Office supplies on hand September 30 are estimated at $1,200.

Debit Supplies Expense $800
Credit Supplies Inventory $800

c. During September, the company earned $12,000 of the rental fees paid by McNomar Construction Company on September 8.

Debit Deferred Rental Income $12,000
Credit Rental Income $12,000

You also need to record these entries on September 30:

Debit Interest Expense $ 733 ($110,000 X 8% / 12)
Credit Interest Payable $733

Debit Salary Expense $600 (2 days (Sept 29 & 30) X $300 per day)
Credit Salaries Payable $600

d. It is estimated that Walker Rent All is subject to a combined federal and state income tax rate of 40 percent of income. These taxes will be payable December 15.

Add up all the income items, subtract from that all the expense items and multiply the result by 40%. The entry will then be:

Debit Income Tax Expense $xx,xxx
Credit Income Tax Payable $xx,xxx

William asks…

Accounting Question help?

24.
Inventory turnover
a. is computed by dividing average inventory by cost of merchandise sold
b. measures the relationship between the volume of goods sold and amount of inventory carried
c. increases the risk of loss from damaged merchandise
d. is computed by dividing the beginning inventory plus the ending inventory by two

25.
Under which method of cost flows is the inventory assumed to be composed of the most recent costs?
a. average cost
b. last-in, first-out
c. first-in, first-out
d. weighted average

26.
The proper journal entry to record the receipt of inventory purchased on account in a perpetual inventory system would be:
a. Jan 1 Inventory 250.00
Accounts Payable 250.00
b. Jan 1 Office Supplies 250.00
Accounts Payable 250.00
c. Jan 1 Purchases 250.00
Accounts Payable 250.00
d. Jan 1 Purchases 250.00
Accounts Receivable 250.00

27.
Silver Co. sold merchandise to Bronze Co. on account, $23,000, terms 2/15, net 45. The cost of the merchandise sold is $18,500. Silver Co. issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. The Bronze Co. paid the invoice within the discount period. What is amount of net sales from the above transactions?
a. $20,090
b. $20,500
c. $3,490
d. $23,000

28.
The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a
a. multiple-step statement
b. revenue statement
c. report-form statement
d. single-step statement

29.
In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is
a. debit Cost of Merchandise Sold; credit Sales
b. debit Cost of Merchandise Sold; credit Merchandise Inventory
c. debit Merchandise Inventory; credit Cost of Merchandise Sold
d. debit Accounts Receivable; credit Sales

30.
Merchandise is sold for cash. The selling price of the merchandise is $2,000 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include
a. A debit to Cash for $2,000.
b. A credit to Sales for $2,100.
c. A credit to Sales Tax Payable for $100.
d. None of the above.

financi4 answers:

24. Inventory turnover
b. Measures the relationship between the volume of goods sold and amount of inventory carried

25. Under which method of cost flows is the inventory assumed to be composed of the most recent costs?
C. First-in, first-out

26. The proper journal entry to record the receipt of inventory purchased on account in a perpetual inventory system would be:
a. Jan 1 Inventory 250.00
Accounts Payable 250.00

27. Silver Co. Sold merchandise to Bronze Co. On account, $23,000, terms 2/15, net 45. The cost of the merchandise sold is $18,500. Silver Co. Issued a credit memorandum for $2,500 for merchandise returned that originally cost $1,900. The Bronze Co. Paid the invoice within the discount period. What is amount of net sales from the above transactions?
A. $20,090

28. The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a
d. Single-step statement

29. In recording the cost of merchandise sold for cash, based on data available from perpetual inventory records, the journal entry is
b. Debit Cost of Merchandise Sold; credit Merchandise Inventory

30. Merchandise is sold for cash. The selling price of the merchandise is $2,000 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include
c. A credit to Sales Tax Payable for $100.

Mark asks…

what are the account titles?

and their meaning!

financi4 answers:

Do You Mean This?
=Assets

Cash
Accounts Receivable
(Allowance for Bad Debts or Doubtful Accounts)
Supplies
Inventory
Office Supplies
Prepaid Expenses
Prepaid Rent
Prepaid Insurance
Notes Receivable
Investments
Land
Buildings
Equipment
Property, Plant and Equipment
(Accumulated Depreciation)

=Liabilities

Accrued Expenses
Notes Payable
Accounts Payable
Unearned Revenues
Unearned Rent
Wages Payable
Dividends Payable
Income Taxes Payable
Notes Payable
Bonds Payable
Premium on Bonds Payable
(Discount on Bonds Payable)
Mortgage Payable

=Owners’ Equity

Common Stock
Preferred Stock
Retained Earnings
(Treasury Stock)
Capital (Proprietorship or Partnership)
Capital Stock
Dividends

=Revenues

Sales Revenue
(Sales Returns)
(Sales Discounts)
Fees Earned
Rent Revenue
Service Revenue
Investment Revenue
Interest Revenue

{Beginning Inventory
+ Purchases
Goods Available for Sale
– Ending Inventory
Cost of Goods Sold

=Expenses

Cost of Goods Sold
Wages Expense
Utilities Expense
Telephone Expense
Rent Expense
Insurance Expense
Supplies Expense
Depreciation Expense
Income Tax Expense

OR

This?

1.Title: Accountant (General, Cost)
Job Description:
This individual must have 1 to 3 years experience with the full accounting cycle. They are to assist the Senior Accountant or are to prepare of the financial statements and various accounting reports; audits contracts, orders and vouchers; implements general accounting systems.
2.Title: Accounting Clerk
Job Description:
Assists with journal entries under supervision of either the bookkeeper or the assistant bookkeeper; helps in the preparation of custom internal reports and posting entries to specific accounts.
3.Title: Accounting Manager
Job Description:
This is the front line manager within a company responsible for the employment and production of those involved in the approved accounting practices of the company and provides accurate reporting and financial results to the Controller.
4.Title: Analyst (Financial, Budget, Cost)
Job Description:
At least 1 year of experience with the full accounting cycle and the preparation of financial statements. They are to apply the principles of accounting module to analyze past and present financial operations; with this they are to estimate future revenues and expenditures; prepare budgets; develop, installs and maintains budgeting systems.
5.Title: A/P (Accounts Payable) Clerk
Job Description:
Realizing that all of the company outstanding accounts must be paid this position is responsible to track and pay in a timely manner all company transactions, recording all entries and trial balances; they are responsible for the accuracy of all journal entries; and updates the credit department on account status.

6.Title: A/P (Accounts Payable) Supervisor
Job Description:
This position is to supervise the process used within a company to pay its bills is such a way to maintain a favorable relationship with its vendors. Opportunities to establish and extend lines of credit as well as acquiring discounts for such things as early payments and payments in full should be sought. This individual should also be aware of upcoming invoices that need to be paid so that they monies to pay such are known within management and are being made available such that late fees and fines are not incurred.
7.Title: A/R (Accounts Receivable) Clerk
Job Description:
Realizing that all of the company outstanding accounts must be collected and processed this position is responsible to track and collect in a timely manner all company transactions, recording all entries and trial balances; they are responsible for the accuracy of all journal entries; and updates the credit department on each account status
8.Title: A/R (Accounts Receivable) Supervisor
Job Description:
This position is to supervise the procedures used within to collect on the monies owed the company for products provided and/or services rendered. It is important that while outstanding accounts are resolved that they are done so as to maintain a favorable relationship with its customers whether they be individuals or businesses.
Opportunities to establish and extend lines of credit as well as acquiring discounts for such things as early payments and payments in full may be sought. This individual should also be aware of upcoming invoices that may be paid and should consider a standard system of aging such accounts. Such an account receivables process to age accounts as those which are outstanding for (30, 60, 90, 120+ days). For such accounts this person is to oversee the collection process of the company from letters, phone calls to collection agencies. They should be able to project when monies may be paid and such information is made known to management.
This person is also responsible for the stability and moral in the accounts receivable department.

James asks…

ACCOUNTING JOURNAL ENTRIES HELP!!?

Received a second shipment of trail tracker snowmobiles and accessories for inventory. The total net purchase of 41,697 credit terms of 2/10, n/30, and fob destination.

Purchased on account accessory items for inventory from fastwinn, incorp. The credit terms are 2/10, m/30, and the goods are shipped FOB shipping point. Total net purchase price for merchandise is 820.00 and assed freight charges listed on the invoice total 27.00

Through a telephone order sold two snowmobiles at an out the door price including sales tax of 10,907.40. The customer from goose lake paid for the snowmobiles with a western national credit card.

shipped two snowmobiles sold to goose lake phone customer. Charged the 70.50 freight costs to our account with inglass incop, a local carrier.

Recorded a major sale to eagle mountain snowmobile club. Received a 25,000, 9%, 60 day note receivable) dated Today (Dec 28) and the remaining balance in cash. Calculate the total amount of sale (including 6% sales tax of 3,338.55). Remember that all snowmobiles are sold with a 25% mark up on cost.

Issed a check for 12.72 to customer Doug as a cash refund for neon cap he returned(stock number with a cost of 6.00). The check is for 12.00 merchandise return plus sales tax(6%).

Issued a check for 55.10 to replenish the petty cash fund. A total 44.90 remains in the petty cash box at this time. Be shore to account for the cash overage or shortage. A summary of recipts shows the following expenditures have been made to date from petty cash
Store supplies 35.19
Tools Expense 11.50
Miscellaneous 6.50

financi4 answers:

Received a second shipment of trail tracker snowmobiles and accessories for inventory. The total net purchase of 41,697 credit terms of 2/10, n/30, and fob destination
Dr Merchandise inventory 41,697
Cr AP 41,697

Purchased on account accessory items for inventory from fastwinn, incorp. The credit terms are 2/10, m/30, and the goods are shipped FOB shipping point. Total net purchase price for merchandise is 820.00 and assed freight charges listed on the invoice total 27.00
Dr Merchandise inventory 847
Cr AP 847

Through a telephone order sold two snowmobiles at an out the door price including sales tax of 10,907.40. The customer from goose lake paid for the snowmobiles with a western national credit card.
Dr Cash 10,907.40 (assuming Western National is a bank, otherwise debit AR)
Cr Sales 10,290
Cr Sales tax payable 617.40
http://www.cerritos.edu/dschmidt/BUSA%20100/BUSA_100_Chapter_9_Cash_Receipts_Payments_and_Banking.htm

Dr COGS 8,232
Cr Merchandise inventory 8,232

shipped two snowmobiles sold to goose lake phone customer. Charged the 70.50 freight costs to our account with inglass incop, a local carrier
Dr Delivery expense 70.50
Cr AP 70.50

Recorded a major sale to eagle mountain snowmobile club. Received a 25,000, 9%, 60 day note receivable) dated Today (Dec 28) and the remaining balance in cash. Calculate the total amount of sale (including 6% sales tax of 3,338.55). Remember that all snowmobiles are sold with a 25% mark up on cost
Dr Cash 33,981.05
Dr Notes receivable 25,000
Cr Sales 55,642.50
Cr Sales tax payable 3338.55

Dr COGS 44,514
Cr Merchandise inventory 44,514

Issed a check for 12.72 to customer Doug as a cash refund for neon cap he returned(stock number with a cost of 6.00). The check is for 12.00 merchandise return plus sales tax(6%)
Dr Sales returns 12
Dr Sales tax payable 0.72
Cr Cash 12.72

Dr Merchandise inventory 9.60
Cr COGS 9.60

Issued a check for 55.10 to replenish the petty cash fund. A total 44.90 remains in the petty cash box at this time. Be sure to account for the cash overage or shortage.
Dr Store supplies 35.19
Dr Tools Expense 11.50
Dr Miscellaneous 6.50
Dr Cash shortage 1.91
Cr Cash 55.10

Ken asks…

I need help with these two problems if someone could help it would be greatly appreciated.?

The following information is available to reconcile Clark Company’s book balance of cash with its
bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company’s Cash account has a $26,193 debit balance,
but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank
reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is
not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not
among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records,
it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was
erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000
cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder
to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had
been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet
been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that
date, but do not appear on the July 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of July 31, 2005.
2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity
with the reconciled cash balance as of July 31, 2005.
Analysis Component
3. Assume that the July 31, 2005, bank reconciliation for this company is prepared and some items
are treated incorrectly. For each of the following errors, explain the effect of the error on (i) the
adjusted bank statement cash balance and (ii) the adjusted cash account book balance.
a. The company’s unadjusted cash account balance of $26,193 is listed on the reconciliation as
$26,139.
b. The bank’s collection of the $9,000 note less the $45 collection fee is added to the bank statement
cash balance on the reconciliation.

This is the final and I just need help understanding it.

Assume it is Monday, May 1, the first business day of the month, and you have just been hired
as the accountant for Colo Company, which operates with monthly accounting periods. All of the
company’s accounting work is completed through the end of April and its ledgers show April 30 balances.
During your first month on the job, the company experiences the following transactions and
events (terms for all its credit sales are 210, n30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use
two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space
and the balance to Rent Expense—Office Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from Peyton Products for the return of merchandise
purchased on April 29.
4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies,
$574; and office supplies, $83. Invoice dated May 4, terms n10 EOM.
COMPREHENSIVE
PROBLEM—
PERPETUAL
Colo Company
excel
mhhe.com/larson
Larson?Wild?Chiappetta:
Fundamental Accounting
Principles, Seventeenth
Edition
7. Accounting Information
Systems
Text © The McGraw?Hill
Companies, 2004
302 Chapter 7 Accounting Information Systems
5 Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2
return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased
on April 29 less the May 3 return and a 2% discount.
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office
equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.

financi4 answers:

I”ve sent the Excel file to you.

Steven asks…

Accounting homework help!!!?

The following accounts are taken from the adjusted trial balance of the Knox Company at December 31, 2011:
Sales $240,000
Sales returns 1,000
Sales salaries expense 14,000
General and administrative expenses 15,000
Selling expenses 8,000
Purchases 160,000
Purchases returns and allowances 2,000
Freight-In 10,000
Inventory—01/01/11 80,000
Retained earnings—01/01/11 50,000
In addition, the following information is available:
1. In December 2011, an accountant for the company discovered that depreciation in the amount of $5,000 (pretax) on a major piece of equipment had not been recorded in 2010. The amount is considered material.
2. The inventory on December 31, 2011 was $75,000.
3. Ten thousand shares of common stock were outstanding during the entire year. Knox paid dividends of $0.65 per share.
4. On October 1, Knox decided to discontinue its unprofitable restaurant segment. This segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The disposition process was completed on November 2, 2011. From January 1, 2011 to Nov. 2, 2011, the segment had incurred an operating loss (pre tax) of $14,000. The segment was sold for $500,000 and the book value of this segment was $400,000.
5. In November, a material loss of $3,000 occurred resulting from an earthquake, which is an infrequent event for the geographic location in which the business operates.
6. The restructuring costs in connection with plan closing and employee relocation amounted to $10,000. These restructuring costs were not related to the disposition of the restaurant segment.
7. During the year, Knox changed the inventory costing method from FIFO to average method.This change resulted in a pre-tax cumulative loss of $12,000. The company adopted the retrospective approach for this change.
2
8. The company had an unrealized gain on valuation of securities-available-for-sale
investment of $17,000.
9. The applicable tax rate is 30%.Required:

1. Prepare an income statement for the year ended 12/31/2011 for Knox Company.
For the continuing operation section, a multiple-step format should be used.

and also…
Selected accounts balance from the 12/31/11 unadjusted trial balance of the Jay Company listed below:
Debit Credit
Inventory (01/01/11) $25,000
Office Supplies 920
Purchases 50,000
Salaries Expenses 20,000
Rent Expenses 3,000
General & administrative expenses 4,000
Sales 140,000
Dividends distributed 2,500
In addition, the following information is available:
The inventory value at 12/31/11 is $12,000.
Required:
Using general journal format, prepare the appropriate inventory related adjusting/closing entries to reflect the cost of goods sold.
2. What is the comprehensive income of 2011 for Knox Company? You need to show
your calculation for full credit (i.e., net income plus other comprehensive income item(s)).

financi4 answers:

Maybe you should start a career in the fast food business.

John asks…

accounting homework problem?

he following accounts are taken from the adjusted trial balance of the Knox Company at December 31, 2011:
Sales $240,000
Sales returns 1,000
Sales salaries expense 14,000
General and administrative expenses 15,000
Selling expenses 8,000
Purchases 160,000
Purchases returns and allowances 2,000
Freight-In 10,000
Inventory—01/01/11 80,000
Retained earnings—01/01/11 50,000
In addition, the following information is available:
1. In December 2011, an accountant for the company discovered that depreciation in the amount of $5,000 (pretax) on a major piece of equipment had not been recorded in 2010. The amount is considered material.
2. The inventory on December 31, 2011 was $75,000.
3. Ten thousand shares of common stock were outstanding during the entire year. Knox paid dividends of $0.65 per share.
4. On October 1, Knox decided to discontinue its unprofitable restaurant segment. This segment comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the company. The disposition process was completed on November 2, 2011. From January 1, 2011 to Nov. 2, 2011, the segment had incurred an operating loss (pre tax) of $14,000. The segment was sold for $500,000 and the book value of this segment was $400,000.
5. In November, a material loss of $3,000 occurred resulting from an earthquake, which is an infrequent event for the geographic location in which the business operates.
6. The restructuring costs in connection with plan closing and employee relocation amounted to $10,000. These restructuring costs were not related to the disposition of the restaurant segment.
7. During the year, Knox changed the inventory costing method from FIFO to average method.This change resulted in a pre-tax cumulative loss of $12,000. The company adopted the retrospective approach for this change.
2
8. The company had an unrealized gain on valuation of securities-available-for-sale
investment of $17,000.
9. The applicable tax rate is 30%.Required:

1. Prepare an income statement for the year ended 12/31/2011 for Knox Company.
For the continuing operation section, a multiple-step format should be used.

and also…
Selected accounts balance from the 12/31/11 unadjusted trial balance of the Jay Company listed below:
Debit Credit
Inventory (01/01/11) $25,000
Office Supplies 920
Purchases 50,000
Salaries Expenses 20,000
Rent Expenses 3,000
General & administrative expenses 4,000
Sales 140,000
Dividends distributed 2,500
In addition, the following information is available:
The inventory value at 12/31/11 is $12,000.
Required:
Using general journal format, prepare the appropriate inventory related adjusting/closing entries to reflect the cost of goods sold.
2. What is the comprehensive income of 2011 for Knox Company? You need to show
your calculation for full credit (i.e., net income plus other comprehensive income item(s)

financi4 answers:

Add me to your skype/ gmail in order to get a full answer

www.tutorandyou.com

gmail : tutorandyou1@gmail.com
skype: tutorandyou

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RBC ignites Canadian impact investing market with $1 million gift …

RBC ignites Canadian impact investing market with $1 million gift …

The famous Stanford marshmallow experiment tested the ability of children to defer the immediate enjoyment of a treat for two treats 15 minutes later. Som.
MaRS Discovery District

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