Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

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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)

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