Lackawanna ACC105 2021 September Module 5 Assignment Latest

 ACC105 Principles of Accounting 1

Module 5 Assignment

Please complete this assignment and upload it for grading.

PR5-3A Sales and purchase-related transactions using perpetual inventory Obj. 2

system

The following were selected from among the transactions completed by Babcock Company during

November of the current year:

Nov,

3. Purchased merchandise on account from Moonlight Co,, list price $45,000, trade discount 25%, terms FOB

destination, 2/10, n/30.

4. Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600,

5. Purchased merchandise on account from Papoose Creek Co, $47,500, terms FOB shipping point, 2/10, n/30, with

prepaid freight of $810 added to the invoice.

6.            Returned merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) pur-

chased on November 3 from Moonlight Co,

8. Sold merchandise on account to Quinn Co, $15,600 with terms n/15, The cost of the goods sold was $9,400,

13. Paid Moonlight Co. on account for purchase of Novernber 3, less return of November 6.

14. Sold merchandise on VISA, $236,000. The cost of the goods sold was $140,000.

15. Pald Papoose Creek Co, on account for purchase of November5

23. Received cash on account from sale of November 8 to Quinn Co.

24. Sold merchandise on account to Rabel Co., $56,900, terms 1/10, n/30, The cost of the goods sold was $34,000

28. Paid VISA service fee of $3,540.

30, Paid Quinn Co. a cash refund of $6,000 for returned merchandise from sale of November 8. The cost of the

returned merchandise was $3,300,

Instructions

Journalize the transactions.

PR5-5A Multiple-step income statement and balance sheet Obj. 4

The following selected accounts and their current balances appear in the ledger of

Clairemont Co. for the fiscal year ended May 31, 20Y2:

Cash $ 240,000 Retained Earnings $ 2,949,100

Accounts Receivable ‘966,000 Dividends 100,000

Inventory 1,690,000 Salles 11,343,000

Estimated Returns Inventory 22,500 Cost of Goods Sold 7,850,000

Office Supplies. 13,500 Sales Salaries Expense 916,000

Prepaid Insurance 8,000 Advertising Expense 550,000

Office Equipment 830,000 Depreciation Expense —

Accumulated Depreciation— Store Equipment 140,000

Office Equipment 550,000 Miscellaneous Selling Expense 38,000

Store Equipment 3,600,000 Office Salaries Expense 650,000

Accumulated Depreciation— Rent Expense 94,000

Store Equipment 1,820,000 Depreciation Expense —

Accounts Payable 326,000 Office Equipment 50,000

Customer Refunds Payable 40,000 Insurance Expense 46,000

Salaries Payable 41,500 Office Supplies Expense 28,100

Note Payable Miscellaneous Administrative Exp. 14,500

(final payment due in 6 years) 300,000 Interest Expense 21,000

Common Stock 500,000

Instructions

1. Prepare a multiple-step income statement.

2. Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issucd during the year ended May 31, 20Y2.

3. Prepare a balance sheet, assuming that the current portion of the note payable is $50,000.