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Accounting Chapter 5 problems




Question;Accounting Chapter 5 correct;answers;Exercise 5-9 Preparing adjusting and closing entries;for a merchandiser LO P3;The following list includes;selected permanent accounts and all of the temporary accounts from the December;31, 2013, unadjusted trial balance of Emiko Co., a business owned by Kumi;Emiko. Emiko Co. uses a perpetual inventory system.;Debit;Credit;Merchandise inventory;$;28,800;Prepaid selling expenses;$;5,500;K.Emiko, Withdrawals;$;2,200;Sales;$;518,400;Sales returns and allowances;$;19,699;Sales discounts;$;5,516;Cost of goods sold;$;255,053;Sales salaries expense;$;57,024;Utilities expense;$;16,589;Selling expenses;$;44,582;Administrative expenses;$;114,566;Additional Information;Accrued sales salaries amount;to $1,700. Prepaid selling expenses of $2,200 have expired. A physical count of;year-end merchandise inventory shows $28,253 of goods still available.;(a) Use the above account;balances along with the additional information, prepare the adjusting entries.(b) Use the above account;balances along with the additional information, prepare the closing entriesProblem 5-1A Preparing journal entries for;merchandising activities-perpetual system LO P1, P2;July 1 Purchased merchandise from Boden Company for;$6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July;1.;2 Sold merchandise to Creek Co. for $950 under;credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The;merchandise had cost $550.;3 Paid;$140 cash for freight charges on the purchase of July 1.;8 Sold merchandise that had cost $1,900 for;$2,300 cash.;9 Purchased merchandise from Leight Co. for;$2,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.;11 Received a $400 credit memorandum from;Leight Co. for the return of part of the merchandise purchased on July 9.;12 Received the balance due from Creek Co. for;the invoice dated July 2, net of the discount.;16 Paid the balance due to Boden Company within;the discount period.;19 Sold merchandise that cost $800 to Art Co.;for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated;July 19.;21 Issued a $200 credit memorandum to Art Co.;for an allowance on goods sold on July 19.;24 Paid Leight Co. the balance due after;deducting the discount.;30 Received the balance due from Art Co. for;the invoice dated July 19, net of discount.;31 Sold merchandise that cost $5,400 to Creek;Co. for $7,300 under credit terms of 2/10, n/60, FOB shipping point, invoice;dated July 31.;Prepare journal entries to;record the above merchandising transactions of Blink Company, which applies the;perpetual inventory system. (Round your answers to 2 decimal places.)Problem 5-3A Preparing adjusting entries and income statements;and computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4;[The following information;applies to the questions displayed below.];The following unadjusted;trial balance is prepared at fiscal year-end for Nelson Company.;NELSON COMPANY Unadjusted Trial Balance;January 31, 2013;Debit;Credit;Cash;$;22,700;$;Merchandise inventory;$;14,500;$;Store supplies;$;5,700;$;Prepaid insurance;$;2,700;$;Store equipment;$;42,700;$;Accumulated;depreciation?Store equipment;$;$;19,400;Accounts payable;$;$;15,000;J. Nelson, Capital;$;$;41,000;J. Nelson, Withdrawals;$;2,150;$;116,050;Sales;$;$;Sales discounts;$;1,850;$;Sales returns and allowances;$;2,050;$;Cost of goods sold;$;38,000;$;Depreciation expense?Store;equipment;$;0;$;Salaries expense;$;31,400;$;Insurance expense;$;0;$;Rent expense;$;18,000;$;Store supplies expense;$;0;$;Advertising expense;$;9,700;$;$;$;Totals;$;191,450;$;191,450;Rent expense and salaries;expense are equally divided between selling activities and the general and;administrative activities. Nelson Company uses a perpetual inventory system.;a. Store;supplies still available at fiscal year-end amount to $2,950.;b. Expired;insurance, an administrative expense, for the fiscal year is $1,350.;c.;Depreciation expense on store equipment, a selling expense, is $1,625 for the;fiscal year.;d. To estimate;shrinkage, a physical count of ending merchandise inventory is taken. It shows;$10,100 of inventory is still available at fiscal year-end.;Problem 5-3A Part 1;Required: 1. Using the above information prepare;adjusting journal entries:Problem 5-3A Part 2;2. Prepare a multiple-step;income statement for fiscal year 2013.Problem 5-3A Part 4;4. Compute the current ratio;acid-test ratio, and gross margin ratio as of January 31, 2013. (Round your;answers to 2 decimal places.) Problem 5-5A Preparing;closing entries and interpreting information about discounts and returns LO C2;P3;Valley Company?s adjusted;trial balance on August 31, 2013, its fiscal year-end, follows.;Debit;Credit;Merchandise;inventory;$;42,300;Other;(noninventory) assets;43,600;Total;liabilities;$;25,900;K. Valley;Capital;20,700;K. Valley;Withdrawals;8,600;Sales;226,600;Sales discounts;2,200;Sales returns;and allowances;13,500;Cost of goods;sold;74,200;Sales salaries;expense;32,500;Rent;expense?Selling space;8,700;Store supplies;expense;1,800;Advertising;expense;13,500;Office salaries;expense;28,500;Rent;expense?Office space;3,400;Office supplies;expense;400;Totals;$;273,200;$;273,200;On August 31, 2012;merchandise inventory was $25,400. Supplementary records of merchandising;activities for the year ended August 31, 2013, reveal the following itemized;costs;o;Invoice cost of;merchandise purchases $ 92,900;o;Purchase;discounts received 2,000;o;Purchase returns;and allowances 4,200;o;Costs of;transportation-in 4,800;Required: 1. Prepare closing entries as of August 31, 2013;(the perpetual inventory system is used).


Paper#45221 | Written in 18-Jul-2015

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