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Problem P4-1A, Prepare worksheet, financial statements, and adjusting and closing entries.

Financial Accounting, 8^{th Edition by Weygandt, Kieso, and Kimmel}

Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse

Problem P4-1A, Sherlock Holmes began operations as a private investigator on January 1, 2014. The trial balance columns of the worksheet for Sherlock Holmes, P.I. at March 31 are as follows.

SHERLOCK HOLMES, P.I., INC.

Worksheet

For the Quarter Ended March 31, 2014

Unadjusted Trial Balance

Ref

Adjustments

Ref

Adjusted Trial Balance

Income Statement

Balance Sheet

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

11,410

Accounts Receivable

5,920

Supplies

1,250

Prepaid Insurance

2,400

Equipment

30,000

Notes Payable

10,000

Accounts Payable

12,350

Common Stock

20,000

Dividends

600

Service Revenue

14,200

Salaries and Wages Expense

2,240

Travel Expense

1,300

Rent Expense

1,200

Miscellaneous Expense

230

Totals

56,550

Supplies Expense

Depreciation Expense

Accumulated Depreciation

Interest Expense

Interest Payable

Insurance Expense

Totals

Net Income

Totals

Other data:

1. Supplies on hand total

$480

(a)

2. Depreciation is

$720

for the quarter

(b)

3. Interest accrued on 6-month note payable, issued January 1,

$300

(c)

4. Insurance expires at the rate of

$200

per month.

(d)

5. Services provided but unbilled at March 31 total

$1,080

(e)

Instructions:

(a) Complete the worksheet.

(b)(1) Prepare an income statement for the quarter ended March 31, 2014.

SHERLOCK HOLMES, P.I., INC.

Income Statement

For the Quarter Ended March 31, 2014

Title

Account title

Amount

Title

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Title

Formula

Title

Formula

(b)(2) Prepare a retained earnings statement for the quarter ended March 31, 2014.

SHERLOCK HOLMES, P.I., INC.

Retained Earnings Statement

For the Quarter Ended March 31, 2014

Title

Amount

Formula

Title

Amount

Title

Formula

(b)(3) Prepare a classified balance sheet for March 31, 2014.

SHERLOCK HOLMES, P.I., INC.

Balance Sheet

March 31, 2014

Assets

Title

Account title

Amount

Account title

Amount

Account title

Amount

Account title

Amount

Total current assets

Formula

Title

Account title

Amount

Less: Account title

Amount

Formula

Title

Formula

Liabilities and Stockholders’ Equity

Title

Account title

Amount

Account title

amount

Account title

amount

Total Current Liabilities

Formula

Title

Account title

Amount

Account title

Amount

Title

Formula

Total Liabilities and Stockholders’ Equity

Formula

(c) Journalize the adjusting entries from the adjustments columns of the worksheet.

Mar 31

Account title

Amount

Account title

Amount

Text explanation

Mar 31

Account title

Amount

Account title

Amount

Text explanation

Mar 31

Account title

Amount

Account title

Amount

Text explanation

Mar 31

Account title

Amount

Account title

Amount

Text explanation

Mar 31

Account title

Amount

Account title

Amount

Mar 31

Account title

Amount

Account title

Amount

(d) Journalize the closing entries from the financial statement columns of the worksheet.

Mar 31

Account title

Amount

Account title

Amount

Account title

Amount

Mar 31

Account title

Text explanation

Account title

Mar 31

Account title

Amount

Account title

Mar 31

Account title

Amount

Account title

Text explanation

Mar 31

Account title

Mar 31

Account title

Problem P5-1A, Journalize purchase and sales transactions under a perpetual inventory system.
Financial Accounting, 8^th Edition by Weygandt, Kieso, and Kimmel
Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse
This challenge has been modified to a units presentation.
Problem P5-1A, Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of
its customers. At the end of June, Ready-Set-Go’s inventory consisted of							120	suitcases purchased at
$10.00	each. During the month of July the following merchandising transactions occurred.
Jul 1	Purchased	150	suitcases on account for			$10.00	each from Trunk Manufacturers, FOB
	destination, terms 2/10, n/30. The appropriate party also made a cash payment of								$100.00	for
	freight on this date.
Jul 3	Sold	110	suitcases on account to Satchel World for				$20.00	each. The cost of suitcases
	sold is	$1,400.00
Jul 9	Paid Trunk Manufacturers in full.
Jul 12	Received payment in full from Satchel World.
Jul 17	Sold	70	suitcases on account to Lady GoGo for					$20.00	each. The cost of
	suitcases sold is		$1,010.00
Jul 18	Purchased	190	suitcases on account for			$1,900.00	from Holiday Manufacturers, FOB
	shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of									$125.00
	for freight on this date.
Jul 20	Received	$300.00	credit (including freight) for			30	suitcases returned to Holiday
	Manufacturers.
Jul 21	Received payment in full from Lady GoGo.
Jul 22	Sold	90	suitcases on account to Vagabond for				$25.00	each. The cost of suitcases
	sold is	$1,350.00
Jul 30	Paid Holiday Manufacturers in full.
Jul 31	Granted Vagabond			$200.00	credit for	8	suitcases returned costing			$120.00

Sansomite's chart of accounts includes the following:
	Acct Nbr	Account title:				Acct Nbr	Account title:
	101	Cash				401	Sales Revenue
	112	Accounts Receivable				412	Sales Returns and Allowances
	120	Inventory				414	Sales Discounts
	201	Accounts Payable				505	Cost of Goods Sold

*Instructions:*
Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system.

Date	Account titles and explanations					Ref	Debit	Credit
Jul 1	Account title						Amount
	Account title							Amount
	Text

3	Account title						Amount
	Account title							Amount
	Text

	Account title						Amount
	Account title							Amount
	Text

9	Account title						Amount
	Account title							Amount
	Account title							Amount
	Text

12	Account title						Amount
	Account title						Amount
	Account title							Amount
	Text

17	Account title						Amount
	Account title							Amount
	Text

	Account title						Amount
	Account title							Amount
	Text

18	Account title						Amount
	Account title							Amount
	Text

	Account title						Amount
	Account title							Amount
	Text

20	Account title						Amount
	Account title							Amount
	Text

21	Account title						Amount
	Account title						Amount
	Account title							Amount
	Text

22	Account title						Amount
	Sales Revenue							Amount
	Text

	Account title						Amount
	Account title							Amount
	Text

30	Account title						Amount
	Account title							Amount
	Text

31	Account title						Amount
	Account title							Amount
	Text

	Account title						Amount
	Account title							Amount
	Text

Problem P6-2A - Determine cost of goods sold and ending inventory using FIFO, LIFO, and average-cost with analysis.

Financial Accounting, 8^{th Edition by Weygandt, Kieso, and Kimmel}
Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse
Problem P6-2A, Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna
had in beginning inventory			1,500	King James CDs with a unit cost of			$7.00	During March Dyna
made the following purchases of King James CDs.
			Mar 5	3,500	units at	$8.00
			Mar 13	4,000	units at	9.00
			Mar 21	2,000	units at	10.00
			Mar 26	2,000	units at	11.00

During March		10,000	units were sold. Dyna uses a periodic inventory system.

Instructions:
(a) Determine the cost of goods available for sale.

		Date:	Quantity		Unit Cost:	Extended Cost:
		Mar 1	Quantity	units at	Amount	Formula
		5	Quantity	units at	Amount	Formula
		13	Quantity	units at	Amount	Formula
		21	Quantity	units at	Amount	Formula
		26	Quantity	units at	Amount	Formula
		Quantity:	Formula	Cost of goods available:		Formula

(b)(1) Determine the ending inventory and cost of goods sold under the First-in, First-out cost flow method. Prove the accuracy of the cost of goods sold.


	Ending Inventory					Cost of Goods Sold
	Date	Units	Unit Cost	Total Cost		Cost of goods available for sale		Formula
	Date	Quantity	Amount	Formula		Title		Formula
	Date	Quantity	Amount	Formula		Title		Formula
		Formula		Formula

			Proof of Cost of Goods Sold
			Date	Units	Unit Cost	Total Cost
			Date	Quantity	Amount	Formula
			Date	Quantity	Amount	Formula
			Date	Quantity	Amount	Formula
			Date	Quantity	Amount	Formula
				Formula		Formula

(b)(2) Determine the ending inventory and cost of goods sold under the Last-in, First-out cost flow method. Prove the accuracy of the cost of goods sold.


	Ending Inventory					Cost of Goods Sold
	Date	Units	Unit Cost	Total Cost		Title		Amount
	Date	Quantity	Amount	Formula		Title		Amount
	Date	Quantity	Amount	Formula		Title		Formula
		Formula		Formula

			Proof of Cost of Goods Sold
			Date	Units	Unit Cost	Total Cost
			Date	Amount	Amount	Formula
			Date	Amount	Amount	Formula
			Date	Amount	Amount	Formula
			Date	Amount	Amount	Formula
				Formula		Formula

(b)(3) Determine the ending inventory and cost of goods sold under the Average Cost cost flow method.

		Total units purchased cost:			Amount
		Title			Quantity
		Average unit cost =			Formula	(Set to four decimal places.)

	Ending inventory quantity:						Quantity
	Ending inventory value:						Amount
	Cost of goods sold:						Formula
	Cost of goods available for sale						Formula

(c)(1) Which cost flow method results in the highest inventory amount for the balance sheet?
Enter text answer here.




(c)(2) Which cost flow method results in the highest cost of goods sold for the income statement?
Enter text answer here.