The following data relate to Jones Company for the year endedDecember 31,2011
Sales on Credit 80,000 Cost of invertory sold on credit 65,000 Collections from customers 60,000 purchase of inventory on credit 50,000 payment of purchases 55,000 cash collections from common stock 30,000 dividens paid 10,000 payment to salesclerk
10,000
A) Determine income on an accrual basis
B) Determine income on a cash basis
The following data relate to Jones Company for the year endedDecember 31,2011
| Sales on Credit | 80,000 |
| Cost of invertory sold on credit | 65,000 |
| Collections from customers | 60,000 |
| purchase of inventory on credit | 50,000 |
| payment of purchases | 55,000 |
| cash collections from common stock | 30,000 |
| dividens paid | 10,000 |
payment to salesclerk | 10,000 |
A) Determine income on an accrual basis
B) Determine income on a cash basis
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Related questions
McGuire Corporation began operations in 2018. The company purchases computer equipment from manufacturers and then sells to retail stores. During 2018, the bookkeeper used a check register to record all cash receipts and cash disbursements. No other journals were used. The following is a recap of the cash receipts and disbursements made during the year.
| Cash receipts: | |||
| Sale of common stock | $ | 50,000 | |
| Collections from customers | 320,000 | ||
| Borrowed from local bank on April 1, note signed requiring | |||
| principal and interest at 12% to be paid on March 31, 2019 | 40,000 | ||
| Total cash receipts | $ | 410,000 | |
| Cash disbursements: | |||
| Purchase of merchandise | $ | 220,000 | |
| Payment of salaries and wages | 80,000 | ||
| Purchase of office equipment | 30,000 | ||
| Payment of rent on building | 14,000 | ||
| Miscellaneous expenses | 10,000 | ||
| Total cash disbursements | $ | 354,000 | |
You are called in to prepare financial statements at December 31, 2018. The following additional information was provided to you:
Customers owed the company $22,000 at year-end.
At year-end, $30,000 was still due to suppliers of merchandise purchased on credit.
At year-end, merchandise inventory costing $50,000 still remained on hand.
Salaries and wages owed to employees at year-end amounted to $5,000.
On December 1, $3,000 in rent was paid to the owner of the building used by McGuire. This represented rent for the months of December through February.
The office equipment, which has a 10-year life and no salvage value, was purchased on January 1, 2018. Straight-line depreciation is used.
Required:
Prepare the income statement for 2018 and a balance sheet as of December 31, 2018.
Comprehensive Problem 7 (Part Level Submission)
On December 1, 2017, Fullerton Company had the following account balances.
| Debit | Credit | |||||
| Cash | $18,200 | Accumulated DepreciationâEquipment | $3,000 | |||
| Notes Receivable | 2,200 | Accounts Payable | 6,100 | |||
| Accounts Receivable | 7,500 | Common Stock | 50,000 | |||
| Inventory | 16,000 | Retained Earnings | 14,400 | |||
| Prepaid Insurance | 1,600 | $73,500 | ||||
| Equipment | 28,000 | |||||
| $73,500 |
During December, the company completed the following transactions.
| Dec. 7 | Received $3,600 cash from customers in payment of account (no discount allowed). | |
| 12 | Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. | |
| 17 | Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000. | |
| 19 | Paid salaries $2,200. | |
| 22 | Paid Vance Co. in full, less discount. | |
| 26 | Received collections in full, less discounts, from customers billed on December 17. | |
| 31 | Received $2,700 cash from customers in payment of account (no discount allowed). |
Adjustment data:
| 1. | Depreciation $200 per month. | |
| 2. | Insurance expired $400. |
Enter the December 1 balances in the ledger T-accounts and post the December transactions I need to make a T-account chart
