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The following trial balance is for Jackson Sales C...

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The following trial balance is for Jackson Sales Company, a home improvement retailer, at January 1, 2012: Debit Credit Cash $49,950 Accounts Receivable 14,000 Allowance for Doubtful Accounts $2,600 Merchandise Inventory 20,200 Land 50,000 Buildings 81,000 Accumulated Depreciation ? Buildings 37,500 Equipment 45,000 Accumulated Depreciation ? Equipment 18,000 Accounts Payable 3,750 Notes Payable 38,500 Common Stock, $10 par 40,000 Retained Earnings 158,300 $260,150 $260,150 PART 1?TRANSACTIONS ? 40 points INSTRUCTIONS: Journalize the appropriate entries for the following transactions for the period January 1, 2012 to December 31, 2012. The company uses a perpetual inventory system and FIFO cost method. Beginning inventory on January 1 consisted of 1,000 units at $20.20 per unit. February 1 Paid $3,750 accounts payable balance due to a supplier. March 15 Received $2,500 partial payment on a $5,000 accounts receivable balance. Wrote off the rest of the account as uncollectible. April 1 April 15 Purchased on account 2,500 units merchandise for resale at $21.50 per unit, with 2/10, n/30 terms. Paid the invoice for April 1 purchase October 10 Sold 700 units of merchandise for a cash price of $40/unit. November 1 Borrowed $20,000 at 6% interest for 5 years with annual payments of principal and interest on October 31. Used the loan proceeds plus cash to purchase a $25,000 delivery truck. December 1 Bought back 500 shares of outstanding stock, paying $15/share. December 5 Sold 2,400 units of merchandise on account for $41/unit. Payment terms on the invoice were 1/10, n/30. December 7 Of the merchandise sold on December 5, 50 units were returned. December 15 Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January. December 15 Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3. December 18 Purchased office supplies of $1,600 on account. December 31 Recorded depreciation for the year Buildings have a 30-year life, a $6,000 residual value and use straight-line depreciation Equipment has a 5-year life, no residual value and use double-declining balance depreciation NOTE: Equipment was all purchased January 1, 2011 Vehicles have a 5-year life, no residual value and use straight-line depreciation December 31 The allowance for doubtful accounts balance is estimated as follows: 2% of current balances are estimated as uncollectible 20% of past-due balances are estimated as uncollectible. December 31 A count of office supplies shows $550 still on hand on December 31. January 2, 2013 Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period. PART 2 ? TRIAL BALANCE ? 10 points INSTRUCTIONS: Prepare a trial balance as of December 31, 2012. PART 3?FINANCIAL STATEMENTS ? 75 points INSTRUCTIONS: Prepare a December 31, 2012 Classified Balance Sheet, Classified Income Statement and Statement of Cash Flows,I have some done if it would help to see where I am going wrong Part 1 Jan 1 Accounts Payable $3750 Cash $3750 March 15 Cash $2500 Allowance for doubtful accounts $2500 Accounts receivable $5000 April 1 Merchandise Inventory $53,750 Accounts payable $53,750 April 15 Accounts payable $53,750 Cash $52,675 Merchandise Inventory $ 1,075 Oct 10 Cash $28,700 Sales $28,700 Oct 10 Cost of goods sold $15,050 Merchandise inventory $15,050 Nov 1 cash $20,000 Loan $20,000 Nov 1 Delivery Truck $25,000 Notes payable $20,000 Cash $ 5,000 Dec 1 Treasury Stock $7,500 Cash $7,500 Dec 5 accounts receivable $98,400 Sales $98,400 Dec 5 cost of goods sold $50,300 Merchandise inventory $50,300 Dec 7 sales returns & allowances $2,050 Accounts receivable $2,050 Dec7 Merchandise inventory $2,050 Cost of goods sold $2,050 Dec 15 Rent Expense $1,500 Prepaid Rent $1,500 Cash $3,000 Dec 15 Dividend expense $4,000 Dividend payable $4,000 Dec 18 Office supplies $1,600 Accounts payable $1,600 Dec 31 depreciation expense-buildings $1,467 Accumulated depreciation $1,467 Dec 31 depreciation expense- equipment $5,470 Accumulated depreciation $5,470 Dec 31 depreciation expense- vehicle $667 Accumulated depreciation $667 Dec 31 Bad debt expense $1,050 Allowance for doubtful $1,050 Dec 31 interest on loan expense $200 Interest payable $200 Jan 2 Supplies expense $4,900 Salaries payable $4,900

 

Paper#4002 | Written in 18-Jul-2015

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