ACCT 221 Midterm Ch. 1-6 Problem
Question # 00027788
Posted By:
Updated on: 10/08/2014 11:57 PM Due on: 10/09/2014
1. Journalize the following selected transactions for April 2013 in a two-column journal. Journal entry
explanations may be omitted.
April 1 Received cash from stockholder, Kevin
Marks, in return for stock, $14,000.
2 Received cash for providing accounting
services, $9,500.
3 Billed customers on account for providing
services, $4,200.
4 Paid advertising expense, $700.
5 Received cash from customers on account,
$2,500.
6 Dividends paid, $1,010.
7 Received telephone bill, $900.
8 Paid telephone bill, $900.
Date
Description
Post Ref
Debit
Credit
2. Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.
1. Fees accrued but unbilled are $4,500.
2.
3.
4.
5.
The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015.
Wages accrued but not paid are $3,500.
Depreciation of office equipment is $2,200.
Rent expired during year, $7,800.
Date
Description
Post Ref
Debit
Credit
3. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.
Cash
Accounts
Receivable
Supplies
Equipment
Accumulated
Depreciation
Accounts Payable
Capital Stock
Dividends
Fees Earned
Salary Expense
Rent Expense
Depreciation
Expense
Supplies Expense
Miscellaneous
Expense
$ 30,000
45,200
5,000
169,900
$ 32,000
12,500
71,600
47,000
510,000
244,500
48,000
25,000
9,500
2,000
$626,100
Date
Description
$626,100
Post Ref
Debit
Credit
4. Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The
seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The
correct amount is paid within the discount period.
Record the foregoing transactions of the buyer in the sequence indicated below.
(a)
(b)
(c)
Purchased the merchandise.
Recorded receipt of the credit memorandum for merchandise returned.
Paid the amount owed.
Date
Description
Post Ref
Debit
Credit
5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:
FOB shipping point, 2/10, n/30. The seller prepays the $50 shipping charges and bills the customer, (seller pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for merchandise costing $500 that is returned. The correct amount is received within the discount period.
Record the foregoing transactions of the seller in the sequence indicated below.
(a)
(b)
Sold the merchandise, recognizing the sale
and cost of merchandise sold.
Paid the transportation charges.
(c)
(d)
Issued the credit memorandum.
Received payment from the customer.
Date
Description
Post Ref
Debit
Credit
6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:
June 1 Balance
6 Sale
8 Purchase
16 Sale
20 Purchase
23 Sale
30 Purchase
25 units at $60
20 units
20 units at $61
10 units
20 units at $62
25 units
15 units at $63
Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the lastin, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory.
explanations may be omitted.
April 1 Received cash from stockholder, Kevin
Marks, in return for stock, $14,000.
2 Received cash for providing accounting
services, $9,500.
3 Billed customers on account for providing
services, $4,200.
4 Paid advertising expense, $700.
5 Received cash from customers on account,
$2,500.
6 Dividends paid, $1,010.
7 Received telephone bill, $900.
8 Paid telephone bill, $900.
Date
Description
Post Ref
Debit
Credit
2. Journalize in a two column journal the adjusting entries required at August 31, 2013. Omit explanations.
1. Fees accrued but unbilled are $4,500.
2.
3.
4.
5.
The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015.
Wages accrued but not paid are $3,500.
Depreciation of office equipment is $2,200.
Rent expired during year, $7,800.
Date
Description
Post Ref
Debit
Credit
3. On the basis of the following data taken from the Adjusted Trial Balance columns of the work sheet for the year ended March 31 for Boles Athletic Company, journalize the four closing entries.
Cash
Accounts
Receivable
Supplies
Equipment
Accumulated
Depreciation
Accounts Payable
Capital Stock
Dividends
Fees Earned
Salary Expense
Rent Expense
Depreciation
Expense
Supplies Expense
Miscellaneous
Expense
$ 30,000
45,200
5,000
169,900
$ 32,000
12,500
71,600
47,000
510,000
244,500
48,000
25,000
9,500
2,000
$626,100
Date
Description
$626,100
Post Ref
Debit
Credit
4. Merchandise with a list price of $7,500 is purchased on account, terms FOB shipping point, 1/10, n/30. The
seller prepaid transportation costs of $300. Prior to payment, $2,000 of the merchandise is returned. The
correct amount is paid within the discount period.
Record the foregoing transactions of the buyer in the sequence indicated below.
(a)
(b)
(c)
Purchased the merchandise.
Recorded receipt of the credit memorandum for merchandise returned.
Paid the amount owed.
Date
Description
Post Ref
Debit
Credit
5. Merchandise with a list price of $3,800 and costing $2,000 is sold on account, subject to the following terms:
FOB shipping point, 2/10, n/30. The seller prepays the $50 shipping charges and bills the customer, (seller pays Cash). Prior to payment for the goods, the seller issues a credit memorandum for $800 to the customer for merchandise costing $500 that is returned. The correct amount is received within the discount period.
Record the foregoing transactions of the seller in the sequence indicated below.
(a)
(b)
Sold the merchandise, recognizing the sale
and cost of merchandise sold.
Paid the transportation charges.
(c)
(d)
Issued the credit memorandum.
Received payment from the customer.
Date
Description
Post Ref
Debit
Credit
6. The following data regarding purchases and sales of a commodity were taken from the related perpetual inventory account:
June 1 Balance
6 Sale
8 Purchase
16 Sale
20 Purchase
23 Sale
30 Purchase
25 units at $60
20 units
20 units at $61
10 units
20 units at $62
25 units
15 units at $63
Determine the cost of the inventory balance at June 30, using (1) the first-in, first-out method and (2) the lastin, first-out method. Identify the quantity, unit price, and total cost of each lot in the inventory.
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Rating:
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Solution: ACCT 221 Midterm Ch. 1-6 Problem Solution