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Tennessee Valley Book Warehouse, Farmer Fudge Company?s




Question;1. Farmer;Fudge Company?s Trial Balance Sheet for themonth ended March 31st is;on the attached worksheet form. Using the following adjusting;data, please complete;the worksheet.;a. A count of;supplies determines that Farmer has $1,200 dollars of supplies remaining;which means $1,300 has been used.;b. Insurance;expires at the rate of $200 per month.;c. Depreciation;on equipment is $400 per month.;d. The loan;accrues interest at the rate of $100 per month.;e. Farmer earns;$4,000 of the $12,000 in unearned revenue;f. Farmer earns;$1200 of Revenue that is billed but not yet paid. (Use Accounts Receivable;for the Debit.);FARMER FUDGE COMPANY;Worksheet;For the Month Ended March 31, 20XX;Trial Balance;Adjustments;Adj. Trial Bal;Income Stmt;Balance Sheet;Dr.;Cr.;Dr.;Cr.;Dr.;Cr.;Dr.;Cr.;Dr.;Cr.;Cash;19,800;Accounts Receivable;9,200;Supplies;2,500;Prepaid Insurance;2,400;Equipment;24,000;Accounts Payable;3,500;Notes Payable;15,000;Unearned Service Rev;12,000;Owners Capital;24,800;Owners Drawing;2,400;Service Revenue;13,400;Salaries and Wages Exp;6,400;Rent Expense;1,200;Utilities Expense;800;Totals;68,700;68,700;Please complete;the fourclosing;journal entries from the information in the worksheet;above. Please prepare the entries in good form in the space provided;below.;Account;Debit;Credit;1. Tennessee Valley Book Warehouse (TVBW);distributes hardcover books to retail stores and extends credit terms;of 2/10, n/30toall of its;customers. At the end of March, TVBW?s inventory consisted of;books purchased for $18,000. During April, the following;merchandising transactions took place;a.;April 1 - Purchased books on account for $7,600 from River Publishers;FOB destination terms;2/20, n/30. The appropriate party also made thecash payment in the amount of;$50 for the freight on this date.;Account;Debit;Credit;a.;April 4 - Sold books on account to the Reader?s Shoppe for;$11,200. The cost of the books sold was $6,850.;Account;Debit;Credit;a.;April 5 - Received $700 credit for book returned to River Publishers.;Account;Debit;Credit;a.;April 10 ? Paid River Publishers in full less discount.;Account;Debit;Credit;a.;April 13 ? Received payment in full from the Reader?s Shoppe.;Account;Debit;Credit;a.;April 27 - Sold books on account to the Roane Reader for;$3,850. The cost of the books sold was $1,925.;Account;Debit;Credit;a.;April 30 - Granted Roane Reader $200 credit for books returned costing $100.;Account;Debit;Credit


Paper#37485 | Written in 18-Jul-2015

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