Unadjusted Trial Balance Cash 7,400 Merchandise inventory 24,000 Store supplies 9,700 Prepaid insurance 6,600 Store equipment 81,800 Accumulated depreciation-Store Equipment 32,000 Accounts payable 18,000 Common Stock 3,000 Retained earnings 40,000 Dividends 2,000 Sales 227,100 Sales Discounts 1,000 Sales returns and allowances 5,000 Cost of goods sold 75,800 Depreciation expense-Store equipment 0 Salariers expense 63,000 Insurance expense
0 Rent Expense 26,000 Store supplies expense 0 Advertising expense 17,800 Totals 320,100 320,100
1. Prepare adjusted journal entries to reflect each of thefollowing.
a. Store supplies still available at fiscal year-end amount to3,700.
b. Expired insurance, an administrative expense, for th fiscalyear is 2,800
c. Depreciation expense on store equipment, a selling expense,is 3,000 for a fiscal year.
d. To estimate shrinkage, a physical count of ending merchandiseinventory is taken. It shows 21,300 of inventory is still availableat fiscal year end.
2. Prepare a multiple step indome statement for fiscal year2013. Check in book says Gross profit should be142,600
3. Prepare a single- step income statement of fiscal year 2013.Check in book Says Total expenses, 197,100 and Net Income,24,000
4. Compute the current ratio, acid- test ratio, and gross marginratio as of October 31, 2013.
Unadjusted Trial Balance | ||
---|---|---|
Cash | 7,400 | |
Merchandise inventory | 24,000 | |
Store supplies | 9,700 | |
Prepaid insurance | 6,600 | |
Store equipment | 81,800 | |
Accumulated depreciation-Store Equipment | 32,000 | |
Accounts payable | 18,000 | |
Common Stock | 3,000 | |
Retained earnings | 40,000 | |
Dividends | 2,000 | |
Sales | 227,100 | |
Sales Discounts | 1,000 | |
Sales returns and allowances | 5,000 | |
Cost of goods sold | 75,800 | |
Depreciation expense-Store equipment | 0 | |
Salariers expense | 63,000 | |
Insurance expense | 0 | |
Rent Expense | 26,000 | |
Store supplies expense | 0 | |
Advertising expense | 17,800 | |
Totals | 320,100 | 320,100 |
1. Prepare adjusted journal entries to reflect each of thefollowing.
a. Store supplies still available at fiscal year-end amount to3,700.
b. Expired insurance, an administrative expense, for th fiscalyear is 2,800
c. Depreciation expense on store equipment, a selling expense,is 3,000 for a fiscal year.
d. To estimate shrinkage, a physical count of ending merchandiseinventory is taken. It shows 21,300 of inventory is still availableat fiscal year end.
2. Prepare a multiple step indome statement for fiscal year2013. Check in book says Gross profit should be142,600
3. Prepare a single- step income statement of fiscal year 2013.Check in book Says Total expenses, 197,100 and Net Income,24,000
4. Compute the current ratio, acid- test ratio, and gross marginratio as of October 31, 2013.