Documente Academic
Documente Profesional
Documente Cultură
Prof. Armando B. Bo
2. Store equipment had a useful life of seven years (all equipment was less than seven years old)
3. Supplies inventory, February 28, $3, 877 (Purchases of supplies during the year were debited to the Supplies Inventory account)
Cash (1) 604,783 (2) 11,420 (4) 5,305 Insurance Expense (4) 5,305
Prof. Armando B. Bo
5. The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding throughout the year
Cash (1) 604,783 (2)11,420 (4) 5,305 (5)88,500 Notes Payable (5) 88,500
7. The statement sent by thr bank , adjusted for checks outstanding showed a balance of $88,110. The difference represented bank service charges.
Cash (1) 604,783 (2) 11,420 (4) 5,305 (5) 88,500 (6) 2,340 (7)390 Bank service charge expense (7) 390
Prof. Armando B. Bo
Account Cash Sales Revenue Equipment Cash Inventory Accounts Payable Insurance expense Cash Note payable Cash Wages expense Cash Bank service charge Cash
Dr. 604,783
Cr.
604,78 11,420 11,420 21,357 21,357 5,305 5,305 88,500 88,500 2,340 2,340 390 390
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Closing Journal Entries: Account Titles Sales Revenue Income Statement To close revenue accounts Income Summary Equipment expense Utilities expense Insurance expense Interest expense Wages expense Bank service charge To close expense accounts 129,312 11,420 21,357 5,305 88,500 2,340 390 604,783 604,783
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Marjorie Morada Management Accounting Save-Mart Balance Sheet As of February 28 Assets Current Assets Cash A/R Mdse.Invty. Supplies Invty. Prepaid Insce. Selling expense Sales salaries Sales discount Interest expense 88,860 127,430 903,130 17,480 12,430 10,880 47,140 3,340 7,100 1,217,790
Prof. Armando B. Bo
Liabilities & Owners Equity Current Liabilities: Notes payable Accounts payable TOTAL CURRENT LIAB. 88,500 88,970 177,470
Non-Current Liab. Common Stock Retained Earnings Other non-current TOTAL NON CURRENT LIAB 100,000 33,500 988,700 1,122,200
TOTAL CURRENT ASSETS Non-Current: Store Equip Acc. Dep. Other non-current assets Misc. Gen, expense Social security tax Expense TOTAL ASSETS 18,930 3,400 70,970 (11,420)
59,550
Prof. Armando B. Bo
Sales Cost of Sales Gross Margin Expenses: Selling expense Sales salaries Misc.Gen. expense Interest expense Income before tax Tax expense NET INCOME 10,880 47,140 18,930 7,100