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In the Month of March, Baldwin received orders of 101 units ata price of $15.00 for their product Bill. Baldwin uses the accrualmethod of accounting and offers 30 day credit terms. Baldwindelivers 101 units in April. They received payment for 51 units inMarch, and 51 units in April. In the March income statement, howmuch revenue is recognized on the March income statement from thisorder? How much in the April Income statement? (Answer inthousands)
Select: 1
0, $758
$1,515 , 0
$758 , $758
0, $1,515

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Collen Von
Collen VonLv2
28 Sep 2019

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In the Month of March, Chester received orders of 117 units at a price of $15.00 for their product Cat. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 117 units in April. They received payment for 59 units in March, and 59 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
Select: 1
0, $878
$878 , $878
$1,755 , 0
0, $1,755

Adventure Elements provides outdoor activities including ropes courses, rock climbing, and zip-lining. The company offers a unique experience for team building activities, camps for youth and anyone seeking outdoor adventure.

The following is trial balance for the year ended March 31, 2017.

No. Account Debit Credit
201 Accounts payable and accrued liabilities $ 3,050
103 Accounts receivable $ 9,750
168 Accumulated depreciation, equipment 8,900
300 Becky Brenner, capital 34,650
301 Becky Brenner, withdrawals 30,400
101 Cash 12,500
194 Copyright 8,100
167 Equipment 34,000
633 Insurance expense 1,940
623 Interest expense 300
141 Notes receivable, due January 1, 2017 18,600
233 Long-term notes payable 19,200
610 Rent expense 10,100
402 Revenues 92,650
126 Supplies 500
637 Supplies expense 2,130
652 Telephone expense 2,470
203 Unearned revenues 18,700
688 Utilities expense 2,360
612 Wages expense 44,000
Totals $ 177,150 $ 177,150


The following is additional information that has not been included in the trial balance.
a. On April 2, you received the telephone bill for the month of March for $735.
b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $4,850 due April 30.
c. On March 31, the company held a teen’s camp for $1,600. All tickets had been prepaid two weeks in advance.
d. The equipment has an estimated useful life of 20 years. If you need to create a new account, use account number 606.


The owner made an additional investment during the year of $13,000. A $4,200 payment on the longterm notes payable will be made during the year ended March 31, 2018.

Required:
1. Prepare an income statement for the year ended March 31, 2017.



2. Prepare a statement of changes in equity for the year ended March 31, 2017.


3. Prepare a classified balance sheet at March 31, 2017. (Be sure to list the assets and liabilities in order of their liquidity.)

Your mission is to complete a comprehensive accounting cycle problem. You will complete:

1. General Journal Entries

2. Worksheet

3. Adjusting Journal Entries

4. General Ledger

5. Income Statement (Multiple Step format)

6. Statement of Retained Earnings

7. Balance Sheet (Classified format)

8. Closing Entries

9. Post Closing Trial Balance

Colo Company

May 1 - Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $4,000. (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.)

May 2 – Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100)

May 2 - Issued a $175 credit memorandum to Knox Co. for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725.

May 3 – Received a $798 credit memorandum from Peyton Products for the return of merchandise purchased on April 29.

May 4 – Purchased the following on credit from Gear Supply Co. Invoice dated May 4, terms n/10 EOM.

May 5 – Received payment from Knox Co., for the balance from the April 28 sale less the May 2 return and the discount

May 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.

May 9 – Sold store supplies to the merchant next door at their cost of $350 cash. (Hint – what are we selling to the next door neighbor, it is not Merchandise Inventory and does not have a cost associated with it)

May 10 – Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms n/10 EOM.

May 11 – Received payment from Hensel Company for the May 2 sale less the discount.

May 11 – Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.

May 12 – Received an $854 credit memorandum from Gear Supply Co. for the return of defective office equipment received on May 10.

May 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.

May 15 – Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)

May 16 – Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890)

May 17 – Purchased $13,650 of merchandise from Fink Corp, invoice dated May 14, terms 2/10, n/60.

May 19 – Issued Check No. 3413 to Garcia, Inc. in payment of its May 11 invoices less the discount.

May 22 – Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 2/10, n/60.

May 23 – Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoices less the discount.

May 24 – Purchased the following on credit from Gear Supply Co. Invoice dated May 24, terms n/10 EOM.

May 25 – Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, n/30.

May 26 – Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).

May 26 – Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.

May 29 – The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use.

May 30 – Received payment from Lee Services for the May 22 sale less the discount.

May 30 – Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees

May 31 – Cash sales for the last half of the month are $66,052 (cost is $42,500)

REQUIRED:

Enter these transactions in the General Journal. Assume a perpetual inventory system.

Terms for all credit sales are 2/10, n/30 unless stated differently.

Using the work sheet / trial balance provided to you, complete using the following information for accounting adjustments.

A. Expired Insurance, $321.

B. Ending store supplies inventory, $692

C. Ending office supplies inventory, $225

D. Depreciation of store equipment, $499

E. Depreciation of office equipment, $758

Complete the work sheet to include the Income Statement and Balance Sheet/Statement of Owner’s Equity, and tie out the balances.

Prepare a May 20xx multiple-step income statement, a May 20xx statement of owner’s equity, and a May 31, 20xx, classified balance sheet.

Check figures: Net Income = $29,009

Total Assets = $382,053

Prepare a post-closing trial balance (be sure to include the closing entries)

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