Financial & Managerial Accounting
13th Edition
ISBN: 9781285866307
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 5, Problem 5.29EX
To determine
Closing entries: This refers to the
To Record: The closing entries of Company S.
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Students have asked these similar questions
Tania’s year end trial balance includes the following balances:
$
Opening inventory 12,964
Trade receivables 43,728
Bank overdraft 5,872
Trade payables 28,627
Tania’s closing inventory is valued at $11,625
Based on the above figures, what is the value of Tania’s current assets?
On November 1, 2025, Kingbird Inc. had the following account balances. The company uses the perpetual inventory method.
Debit
Credit
Accounts Receivable
6,272
Accounts Payable
9,520
Supplies
2.408
Unearned Service Revenue
11.200
Equipment
70.000
Salaries and Wages Payable
4.760
Common Stock
56,000
Total
$103.880
Retained Earnings
19.600
Total
$103,880
During November, the following summary transactions were completed.
Nov.8 Paid $9,940 for salaries due employees, of which $5,180 is for November and $4,760 is for October.
10. Received $5,320 cash from customers in payment of account.
11. Purchased merchandise on account from Dimas Discount Supply for $22,400, terms 2/10, n/30.
12. Sold merchandise on account for $15,400, terms 2/10, n/30. The cost of the merchandise sold was $11,200.
15. Received credit from Dimas Discount…
Valley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows.
Debit
Credit
Merchandise inventory
$
38,000
Other (noninventory) assets
152,000
Total liabilities
$
43,890
K. Valley, Capital
125,585
K. Valley, Withdrawals
8,000
Sales
259,920
Sales discounts
3,977
Sales returns and allowances
17,155
Cost of goods sold
100,577
Sales salaries expense
35,609
Rent expense—Selling space
12,216
Store supplies expense
3,119
Advertising expense
22,093
Office salaries expense
32,490
Rent expense—Office space
3,119
Office supplies expense
1,040
Totals
$
429,395
$
429,395
On August 31, 2014, merchandise inventory was $30,666. Supplementary records…
Chapter 5 Solutions
Financial & Managerial Accounting
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - The credit period during which the buyer of...Ch. 5 - What is the meaning of (A) 1/15, n/60; (B) n/30;...Ch. 5 - How are sales to customers using .MasterCard and...Ch. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Name three accounts that would normally appear in...Ch. 5 - Audio Outfitter Inc., which uses a perpetual...Ch. 5 - Prob. 10DQ
Ch. 5 - Prob. 5.1APECh. 5 - Gross profit During the current year, merchandise...Ch. 5 - Prob. 5.2APECh. 5 - Purchases transactions Hoffman Company purchased...Ch. 5 - Prob. 5.3APECh. 5 - Prob. 5.3BPECh. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Freight terms Determine the amount to be paid in...Ch. 5 - Prob. 5.5APECh. 5 - Transactions for buyer and seller Shore Co. sold...Ch. 5 - Prob. 5.6APECh. 5 - Inventory shrinkage Hahn Flooring Company's...Ch. 5 - Ratio of safes to assets Financial statement data...Ch. 5 - Prob. 5.7BPECh. 5 - Determining gross profit During the current year,...Ch. 5 - Determining cost of merchandise sold For a recent...Ch. 5 - Purchase-related transactions The Stationery...Ch. 5 - Purchase-related transactions A retailer is...Ch. 5 - Prob. 5.5EXCh. 5 - Prob. 5.6EXCh. 5 - Prob. 5.7EXCh. 5 - Prob. 5.8EXCh. 5 - Prob. 5.9EXCh. 5 - Prob. 5.10EXCh. 5 - Sales-related transactions The debits and credits...Ch. 5 - Prob. 5.12EXCh. 5 - Determining amounts to be paid on invoices...Ch. 5 - Sales-related transactions Showcase Co., a...Ch. 5 - Purchase-related transactions Based on the data...Ch. 5 - Prob. 5.16EXCh. 5 - Prob. 5.17EXCh. 5 - Prob. 5.18EXCh. 5 - Normal balances of merchandise accounts What is...Ch. 5 - Prob. 5.20EXCh. 5 - Income statement for merchandiser The following...Ch. 5 - Determining amounts for items omitted from income...Ch. 5 - Multiple-step income statement On October 31,...Ch. 5 - Prob. 5.24EXCh. 5 - Prob. 5.25EXCh. 5 - Adjusting entry for merchandise inventory...Ch. 5 - Prob. 5.27EXCh. 5 - Prob. 5.28EXCh. 5 - Prob. 5.29EXCh. 5 - Prob. 5.30EXCh. 5 - Prob. 5.31EXCh. 5 - Prob. 5.32EXCh. 5 - Prob. 5.33EXCh. 5 - Prob. 5.34EXCh. 5 - Cost of merchandise sold and related items The...Ch. 5 - Cost of merchandise sold Based on the following...Ch. 5 - Prob. 5.37EXCh. 5 - Prob. 5.38EXCh. 5 - Prob. 5.39EXCh. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple step income statement and report form of...Ch. 5 - Prob. 5.6APRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Periodic inventory accounts, multiple-step income...Ch. 5 - Purchase-related transactions using perpetual...Ch. 5 - Sales-related transactions using perpetual...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Sales-related and purchase-related transactions...Ch. 5 - Multiple-step income statement and report form of...Ch. 5 - Prob. 5.6BPRCh. 5 - Appendix Purchase-related transactions using...Ch. 5 - Prob. 5.8BPRCh. 5 - Appendix Sales-related and purchase-related...Ch. 5 - Prob. 5.10BPRCh. 5 - Continuing problem Palisade Creek Co. is a...Ch. 5 - Prob. 5.1CPCh. 5 - Prob. 5.2CPCh. 5 - Prob. 5.3CPCh. 5 - Prob. 5.4CP
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- A partial work sheet for McKnight Music Store is presented here. The merchandise inventory at the beginning of the fiscal period was 48,473. W. J. McKnight, the owner, withdrew 40,000 during the year. Required 1. Prepare an income statement. 2. Journalize the closing entries. Check Figure Cost of Goods Sold, 192,521arrow_forwardValley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 K. Valley, Capital 125,585 K. Valley, Withdrawals 8,000 Sales 259,920 Sales discounts 3,977 Sales returns and allowances 17,155 Cost of goods sold 100,577 Sales salaries expense 35,609 Rent expense—Selling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expense—Office space 3,119 Office supplies expense 1,040 Totals $ 429,395 $ 429,395 On August 31, 2014, merchandise inventory was $30,666. Supplementary records…arrow_forwardValley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 K. Valley, Capital 125,585 K. Valley, Withdrawals 8,000 Sales 259,920 Sales discounts 3,977 Sales returns and allowances 17,155 Cost of goods sold 100,577 Sales salaries expense 35,609 Rent expense—Selling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expense—Office space 3,119 Office supplies expense 1,040 Totals $ 429,395 $ 429,395 On August 31, 2014, merchandise inventory was $30,666. Supplementary records of…arrow_forward
- Valley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 K. Valley, Capital 125,585 K. Valley, Withdrawals 8,000 Sales 259,920 Sales discounts 3,977 Sales returns and allowances 17,155 Cost of goods sold 100,577 Sales salaries expense 35,609 Rent expense—Selling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expense—Office space 3,119 Office supplies expense 1,040 Totals $ 429,395 $ 429,395 On August 31, 2014, merchandise inventory was $30,666. Supplementary records…arrow_forwardOn July 31, 20Y7, the balances of the accounts appearing in the ledger of Yang Interiors Company, a furniture wholesaler, are as follows: Accumulated Depr.—Building $443,000 Administrative Expenses 534,000 Building 984,000 Cash 95,000 Cost of Merchandise Sold 941,000 Interest Expense 7,000 Merchandise Inventory 140,000 Notes Payable 121,000 Peter Bronsky, Capital $644,000 Peter Bronsky, Drawing 18,000 Sales 1,745,000 Sales Tax Payable 4,500 Selling Expenses 194,000 Store Supplies 19,000 Store Supplies Expense 25,500 Prepare the July 31,…arrow_forwardAN Jensen Company's general ledger included the following selected accounts (in thousands) at December 31, 2021: Accounts payable $1,077.3 Accounts receivable 590.4 Accumulated depreciation—equipment 858.7 Allowance for doubtful accounts 35.4 Bad debt expense 91.3 Cash 395.6 Cost of goods sold 660.4 Equipment 1,732.8 Interest revenue 19.7 Merchandise inventory 630.9 Notes receivable—due in 2022 96.0 Notes receivable—due in 2025 191.1 Prepaid expenses 20.1 Sales 4,565.5 Sales discounts 31.3 Short-term investments 194.9 Supplies 21.7 Unearned revenue 56.3 Additional information: 1.On December 31, 2020, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand. 2.The receivables turnover was 8.3 the previous year. Instructions a. Prepare the assets section of the balance sheet. b. Calculate the receivables turnover and average collection period. Compare these results with the previous year's results and comment on any trendsarrow_forward
- ook ht rint rences In its first year of operations, Cloudbox has credit sales of $230,000. Its year-end balance in accounts receivable is $13,000, and the company estimates that $3,000 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $29,500, Cash is $21,500, and Prepaid Rent is $3,750. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list Journal entry worksheet 1 Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Bad debts expense 8 Allowance for doubtful accounts Debit Creditarrow_forwardPresented Below are selected account balances for Kirby Company as of December 31, 2014 Merchandise Inventory 12/31/14 24,000 Common Stock 30,000 Retained Earnings 18,000 Dividends 7,200 Sales Returns and Allowances 4,800 Sales Discounts 6,000 Sales 164,000 Cost of Goods Sold 90,280 Selling Expenses 6,400 Administrative Expenses 15,200 Income Tax Expense 12,000 Prepare Closing Entries for Kirby Co. on December 31, 2014arrow_forwardSelect account balances from the December 31, 2015, trial balances of the Gracy Companyare listed below:Debit CreditInventory, January 1, 2015 $12,500Purchases 25,000Salaries Expense 5,000Rent Expense 3,250General and Administrative Expenses 2,500Sales $61,000Dividends Declared 3,500In addition, the following information is available:- The cost of the ending inventory at December 31, 2015, is $7,50-UVI Online ACC 3010 Mid-term Assessment 2- $890 of salaries has accrued of December 31.- On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase wasdebited to Prepaid Insurance.- On December 1, the company paid 2 months’ rent in advance. The $1,400 payment wasdebited to Rent Expense.- In December, a customer paid $1,000 in advance for merchandise that will be shipped byGracy in 2016. The amount received was credited to Sales.- Gracey estimates its bad dets to be 1% of sales (after all adjustments)- The insurance tax rate is 30%.Gracy Company uses a periodic inventory…arrow_forward
- The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Kristina Marble, Drawing $ 100,000 $ 240,000 Cash Sales Accounts Receivable 966,000 11,343,000 Merchandise Inventory Cost of Merchandise Sold 1,690,000 7,850,000 Estimated Returns Inventory Sales Salaries Expense 916,000 22,500 Office Supplies Prepaid Insurance Office Equipment Advertising Expense Depreciation Expense- Store Equipment Miscellaneous Selling Expense 13,500 550,000 8,000 140,000 830,000 Accumulated Depreciation- 38,000 Office Salaries Expense Office Equipment Store Equipment Accumulated Depreciation- 650,000 550,000 Rent Expense 3,600,000 94,000 Depreciation Expense- Office Equipment Insurance Expense Office Supplies Expense Store Equipment Accounts Payable 50,000 1,820,000 48,000 326,000 Customer Refunds Payable 40,000 28,100 Salaries Payable Note Payable Miscellaneous Administrative Exp. 41,500 14,500 Interest Expense 21,000 (final…arrow_forwardThe general ledger of Zippers-Are-Us at January 1, 2021 includes the following account balances: Cash Accounts Receivable Inventory Prepaid Insurance Prepaid Rent Furniture and Fixtures Accounts Payable Deferred Revenue Accumulated Depreciation Common Stock Retained Earnings Totals 1. 2. 3. 4. 5. 6. 7. Accounts 8. 9. 30,000 14,750 $58,800 The following is a summary of the transactions for the month of January: Sold inventory that had a cost of $1,800 for cash Collect on accounts receivable January 22 January 22 January 25 10. January 28 January 4 January 6. January 9 January 11 January 18 January 21 11. January 30 12. January 31 ● • Debits $28,400 8,400 12,200 800 1,000 8,000 $58,800 Credits $7,200 6,050 800 Paid accounts payable Paid salaries Purchased inventory on account Sold inventory with a cost of $3,600 for $2,000 cash and $6,000 on account Purchased supplies on account Purchased copy machine on account Issue common stock in exchange for cash Signed a note payable in the amount…arrow_forwardRamir Alindogan Catering 's Inventory showed a balance of P100,000 before the year-end adjustments. The physical count of goods on hand totaled P97,000. What account would Ramir Alindigan close at the end of the year? Accounts Receivable Accounts Payable Inventory Cost of Goods Soldarrow_forward
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