Foundations Of Accounting I Account Project Written By Kare

Foundations Of Accounting Iaccounting Projectwritten By Karen Pitsch

Foundations of Accounting I Accounting Project Written by: Karen Pitsch David’s Entertainment is a merchandising business. Their account balances as of November 30, 2012 (unless otherwise indicated), are as follows: 110 Cash $ 73, Accounts Receivable 34, Allowance for Doubtful Accounts 11, Merchandise Inventory 123, Prepaid Insurance 3, Store Supplies 2, Store Equipment 100, Accumulated Depreciation-Store Equipment 20, Accounts Payable 21, Salaries Payable Interest Payable Note Payable (Due , D. Williams, Capital (January 1, , D. Williams, Drawing 50, Income Summary Sales 853, Sales Returns and Allowances 20, Sales Discounts 13, Cost of Merchandise Sold 414, Sales Salaries Expense 74, Advertising Expense 18, Depreciation Expense Store Supplies Expense Miscellaneous Selling Expense 2, Office Salaries Expense 40, Rent Expense 18, Insurance Expense Bad Debt Expense Miscellaneous Administrative Expense 1, Interest Expense 1,100 David’s Entertainment uses the perpetual inventory system and the First-in, First-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the First-in, First-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt. The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily). David’s Entertainment sells four types of television entertainment units. The sale prices of each are: TV A: $3,500 TV B: $5,250 TV C: $6,125 PS D: $9,000 During December, the last month of the accounting year, the following transactions were completed: Dec. 1. Issued check number 2632 for the December rent, $2,600. 3. Purchased three TV C units on account from Prince Co., terms 2/10, n/30, FOB shipping point, $11,100. 4. Issued check number 2633 to pay the transportation changes on purchase of December 3, $400. (NOTE: Do not include shipping and purchase discounts to the Inventory Control sheet for this project.) 6. Sold four TV A and four TV B on account to Albert Co., invoice 891, terms 2/10, n/30, FOB shipping point. 10. Sold two projector systems for cash. 11. Purchased store supplies on account from Matt Co., terms n/30, $580. 13. Issued check to Prince Co. number 2634 for the full amount due, less discount allowed. 14. Issued credit memo for one TV A unit returned on sale of December 6. 15. Issued check number 2635 for advertising expense for last half of December, $1,500. 16. Received cash from Albert Co. for the full amount due (less return of December 14 and discount). 19. Issued check number 2636 to buy two TV C units, $7,600. 19. Issued check number 2637 for $6,100 to Joseph Co. on account. 20. Sold five TV C units on account to Cameron Co., invoice number 892, terms 1/10, n/30, FOB shipping point. 20. For the convenience of the customer, issued check number 2638 for shipping charges on sale of December 20, $700. 21. Received $12,250 cash from McKenzie Co. on account, no discount. 21. Purchased three projector systems on account from Elisha Co., terms 1/10, n/30, FOB destination, $15,600. 24. Received notification that Marie Co. has been granted bankruptcy with no amount of recovery. We are to write-off her amount due. (Note: See page 402 for entry required.) 25. Issued a debit memo for return of $5,200 because of a damaged projection system purchased on December 21, receiving credit from the seller. 26. Issued check number 2639 for refund of cash on sales made for cash, $600. (Customer was going to return goods until an allowance was arranged.) 27. Issued check number 2640 for sales salaries of $1,750 and office salaries of $950. 28. Purchased store equipment on account from Matt Co., terms n/30, FOB destination, $1,200. 29. Issued check number 2641 for store supplies, $470. 30. Sold four TV C units on account to Randall Co., invoice number 893, terms 2/10, n/30, FOB shipping point. 30. Received cash from sale of December 20, less discount, plus transportation paid on December 20. (Round calculations to the nearest dollar.) 30. Issued check number 2642 for purchase of December 21, less return of December 25 and discount. 30. Issued a debit memo for $300 of the purchase returned from December 28. Instructions: 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account (General Ledger). Write Balance in the item section, and place a check mark (x) in the Post Reference column. 2. Journalize the transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal as illustrated in chapter 7. Also post to the Accounts Receivable and Accounts Payable Subsidiary ledgers and Inventory Control Sheet as needed. 3. Total each column on the special journals and prove the journal. 4. Post the totals of the account named columns and individually post the “other†columns as well to the General Ledger. 5. Prepare the Schedule of Accounts Receivable and the Schedule of Accounts Payable (their total amount must equal the amount in their controlling general ledger account). 6. Prepare the unadjusted trial balance on the worksheet. 7. Complete the worksheet for the year ended December 31, 2012, using the following adjustment data: a. Merchandise inventory on December 31 $90,800 b. Insurance expired during the year 1,250 c. Store supplies on hand on December d. Depreciation for the current year needs to be calculated. The business uses the Straight-line method, the store equipment has a useful life of 10 years with no salvage value. (NOTE: the purchase and return will not be included as the dates of the transactions were after the 15th of the month). e. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month. f. Net realizable value of Accounts Receivable is determined to be $27,950. 8. Prepare a multiple-step income statement, a statement of owner’s equity, and a classified balance sheet in good form. (Recommend review of “Current Liabilities†on pages 166 & 167 and “Current Maturities of Long-term Debt†on page 480.) 9. Journalize and post the adjusting entries. 10. Journalize and post the closing entries. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry. 11. Prepare a post-closing trial balance. Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations 1 Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations Joseph Westbrook Strayer University ECO 100: Principles of Economics Professor Julliet Elu October 26, 2013 Week 8 Assignment 2 Submission If you are using the Blackboard Mobile Learn IOS App, please click "View in Browser." Click the link above to submit your assignment. Due Week 8 and worth 200 points Write a three to four (3-4) page paper in which you: 1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. 2. Propose two (2) strategies that the federal government could implement that would encourage people to spend more money in order to create employment opportunities. 3. Identify a situation in the past 50 years in which the government used antitrust policies to stop a monopoly from occurring. Include the circumstances of the proposed monopoly and the reason the government stepped in. Predict what would have occurred had the monopoly succeeded. 4. Propose two (2) methods of identifying groups of customers who should receive a discount for a product or service without alienating consumers. 5. Suggest three (3) reasons a monopoly may or may not be efficient in any economy. 6. Use at least three (3) quality resources in this assignment. Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. · Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length. The specific course learning outcomes associated with this assignment are: · Analyze imperfectly competitive markets – monopoly, monopolistic competition and oligopoly – to understand their profit-maximizing decisions. · Explain the factors and mechanisms of growth. · Explain how governments use monetary and fiscal policy to manage the economy. · Use technology and information resources to research issues in principles of economics. · Write clearly and concisely about principles of economics using proper writing mechanics Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills. Click here to view the grading rubric for this assignment.