Question;It is Monday, May 1, the first business;day of the month, and you have just been hired as the accountant for Alpine;Company, which operates with monthly accounting peri?ods. All of the company's;accounting work has been completed through the end of April and its ledgers;show April 30 balances detailed in the April 30 post-closing trial balance immediately below. These represent the opening balances;for the month of May.;Alpine Company;Post Closing Trial Balance;April 30;$?s;Account;Dr;Cr;Cash;50,500;Accounts;Receivable;14,725;Merchandise;Inventory;220,080;Office;Supplies;430;Store;Supplies;2,447;Prepaid;Insurance;3,318;Office;Equipment;22,470;Accumulated;Depreciation, Office Equipment;9,898;Store;Equipment;38,920;Accumulated;Depreciation, Store Equipment;17,556;Accounts;Payable;17,098;Clint;Barry, Capital;308,338;Total;352,890;352,890;Alpine;Company uses a perpetual inventory system. The terms of all credit sales are 2/10, n/30. During your first month on the;job, the fol?lowing transactions occur for Alpine Company.These are exactly the same;transactions as contained in the textbook from which this case is taken.;May 1 Issued cheque #3410 to S&M Management Co. in payment of the May;rent, $3,400. Use two Rent Expense;accounts to record the transaction. Charge 80% of the rent to Rent Expense: Selling Space and the balance to Rent;Expense:Office Space.;2 Sold merchandise;on credit to Essex Company, invoice 8785, $6,100. Cost $3,660.;2 Issued a $175 credit memorandum to Nabors;Inc., for defective merchandise sold on April 28 and discarded when returned by;Nabors, Inc. (cost $105)for credit. The total selling price was $4,725.;3 Received a $798 credit memorandum from Parkay Products for;merchandise - received on April 29 and returned for credit.;4 Purchased on credit from Thompson Supply Co.: merchandise;$37,072, store supplies, $574, and office supplies, $83. Invoice dated May 4;terms n/10 EOM.;5 Received;payment from Nabors, Inc. from the sale of April 28.;8 Issued cheque #3411 to Parkay Products to pay for the $7,098 of;merchan?dise received on April 29. The terms of this purchase are 2/10, n/30);9 Sold;store supplies to the merchant next door at cost for cash, $350.;10 Purchased office equipment on credit from Thompson Supply Co.;invoice dated May 10, terms n/10 EOM, $4,074.;11 Received;payment from Essex Company for the May 2 sale.;11 Received merchandise and an invoice dated May 10, terms 2/10;n/30, from Gale, Inc., $8,800.;12 Received an $854 Credit memorandum from Thompson Supply Co. for;defec?tive office equipment received on May 10 and returned for credit.;15 Issued cheque #3412, payable to Payroll, in;payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the;cheque and paid the employees.;15 Cash sales for the first half of the month, $65,220. Cost $37,432.;Suchsales are normally recorded daily. They are recorded only twice in this;problem to reduce the repetitive entries.;16 Sold merchandise on credit to Essex Company, invoice 8786;$3,990. Cost $2,394.;17 Received merchandise and an invoice dated May 14, terms 2/10;n/60, from Chandler Corp., $13,650.;19 Issued;cheque #3413 to Gale, Inc. in payment of its May 10 invoice.;22 Sold merchandise to Oscar Services, invoice 8787, $6,850, terms;2/10, n/60. Cost $4110.;23 Issued;cheque #3414 to Chandler Corp. in payment of its May 14 invoice.;24 Purchased on credit from Thompson Supply Co.: merchandise;$8,120, store sup?plies, $630, and office supplies, $280. Invoice dated May 24;terms n/10 EOM.;25 Received merchandise and an invoice dated May 23, terms 2/10;n/30, from Parkay Products, $3,080.;26 Sold merchandise on credit to Deaver Corp.;invoice 8788, $14,210. Cost;$8,526.;26 Issued cheque #3415 to Trinity Power in;payment of the April electric bill;$1,283.;29 The owner, Clint Barry, withdrew $7,000;from the business for personal use, using cheque #3416.;30 Received;payment from Oscar Services for the May 22 sale.;30 Issued cheque #3417, payable to Payroll, in payment of sales;salaries, $5,320, and office salaries, $3,150. Cashed the cheque and paid the;employees.;31 Cash sales for the last half of the month;were $68,250. Cost $39,630.;Additional Information;a);Expired insurance, $553.;b);Ending store supplies;inventory, $2,632.;c);Ending office supplies;inventory, $504.;d);Estimated depreciation of;store equipment, $567.;e);Estimated depreciation of;office equipment, $329.;f);Ending merchandise inventory;$191,000.;REQUIRED;1. Your new employer needs you to prepare;a detailed, multi-step Income Statement for the month of May (like the one;for Z-Mart on page 289 of your text) & a classified Balance Sheetas;at May 31 for Alpine Company.;2. Complete the closing entries.;You may choose to do these before you prepare the Financial Statements;or after, it?s up to you.;Notes;a) You can use your textbook & any;paperwork you choose including a Super-T or a Worksheet.;b) You are to complete the above required;individually or in a group of 2-4 people of your choosing.;c);Hand in only one completed;assignment per group. Put all group members? names (first;last) on the assignment.;d) Each person in the group will receive the same grade.;e) If you are not sure about the meaning;of certain words or information, make an assumption that is consistent with the;facts presented and that allows you to show the most knowledge and carry on;accordingly.
Paper#37526 | Written in 18-Jul-2015Price : $43