Accounting HW, T-accounts, trial balance and financial statments

Post Closing

TB

12/31/2012

debitcredit

Cash49,000

A/R6,800

Less: Allow for DA476

Inventory24,000

Supplies300

Prepaid Insurance7,500

Prepaid Rent3,400

Machine34,800

Less: A/D - Mach400

Equip - Truck

Less: A/D - Truck

A/P38,000

Utilities Payable

Wages Payable2,000

Interest Payable

U.E. Revenue23,800

Bond Payable

Premium on Bonds Payable

C/S10,500

APIC53,500

Div Decl

R/E2,876

Sales

Sales R&A

COGS

Wage Expense

Supplies Expense

Insurance Expense

Depreciation Expense

Rent Expense

Bad Debt Expense

Utility Expense

Interest Expense

128,676 128,676

As you post the entries, continue to use your T-account sheet with the appropriate balances carried forward as your beginning Balances.

4. Journalize each of the transactions in debit/credit form, if no entry is required, list “no entry”

transactions

1) Employee wages are paid on January 2nd (for the second half of December) and 16th of January. Wages for the

second half of January will be paid on February 2.

2) 200 additional units of inventory are purchased for $19,000 on account.

3) $6,800 cash sales for 40 units of inventory occurred during the first week of January.

4) Sales of 30 units on account occurred during the reminder of January.

5) Paid for the first inventory purchase of 200 units that had occurred on account in December (for $18,000). The other $6,000 in beginning inventory is $100/unit.

6) Collections of Accounts Receivable totaled $3,000.

7) Declared and paid a small cash dividend of $.30 per share to common stockholders (1,000 shares issued and outstanding).

8) At the end of January, A $100,000, 6%, 6 year bond is issued. The effective yield is 5%

5% 6%

Present Value of $1 factors .746 .705

Present Value of an Annuity of $1 factors 5.076 4.917

9) A truck is purchased for $35,000 cash. It is estimated the truck has a useful life of 5 years and a $5,000 salvage value. The machine was purchased December 2012. The machine is a 5 year asset with no salvage value.

10) A $580 customer account is written off as uncollectible

A. Prepare journal entries below to record the transactions.

#	Account Name	Debit	Credit
1	Wages payable	2000
	Cash		2000
	Wages Expenses	2000
	Cash		2000
	Wages Expense	20000
	Wages payable		20000
2	Inventory	19000
	Cash		19000
3	Cash	6800
	Sales		6800
	Cogs	3600
	Inventory		3600
4	A\R	5100
	Sales(120x30)		5100
	Cogs	2700
	Inventory		2700
5	A/P	18000
	Cash		18000
6	cash	3000
	A/R		3000
7	Dividends	300
	Cash		300
8	Cash	105,056
	Premium		5056
	Bond payable		100000
9	Equipment	3000
	Cash		35000

10 – Allowance for doubtful account 580

A/R 580

B. Post Entries to your T-account sheet (Don’t forget that some account balances have beginning balances)

C. Prepare the adjusting entries you feel are necessary at the end of the period.

Additional Information:

1. Based on a physical count, supplies still on hand total $150.

2. The office furniture and the vehicle are depreciated.

3. It is estimated that 10% of the ending accounts receivable balance will be uncollectible.

4. A $750 utility bill arrived. It is due on Feb 15 and will be paid then.

1- Supplies expense	150
Supplies		150
2- Depreciate expense	500
A/P truck		500
Depreciate expense	580
A/p		580
3- Bad debt expense	936
Allow for D|A		936
4- Utilities expense	750
A|P		750

D. Post the adjusting entries to your T-accounts.

E. Prepare a trial balance after posting all adjusting entries.

ADJUSTED TRIAL BALANCE

Account	Adj. Bal Dr	Adj Bal Cr

F. Prepare the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows.

Financial Statements: January 31, 2013:

MBC, Inc. Income Statement For the period January 1 – January 31, 2013
Revenue
Cost of Goods Sold
Gross margin
Operating expenses
Net income

MBC, Inc. Statement of Retained Earnings For the period January 1 – January 31, 2013
Retained earnings, beginning of period
Add:
Less:
Retained earnings, end of period

MBC, Inc. Balance Sheet as of January 31, 2013
ASSETS	LIABILITIES
		Total Liabilities
		STOCKHOLDERS’ EQUITY
		Total stockholders’ equity
		Total liabilities and
Total assets		stockholders’ equity