Accounting Project Essay

Foundations of Accounting IAccounting ProjectWritten by Karen PitschSpecial thanks to Donna LarnerRandiddle Co. is a merchandising business. Their cipher balances as of November 30, 2012 (un slight otherwise indicated), are as follows110Cash$ 74,370112Accounts receivable 6,178113Allowance for Doubtful Accounts 650115Merchandise blood 2,346116Prepaid restitution 5,750117 transshipment center Supplies 2,850123Store Equipment 100,800124Accumulated Depreciation-Store Equipment 31,060210Accounts Payable 3,286211Salaries Payable 0218 fill Payable 0220Note Payable (Due 2017) 30,000($6,000 to be paid in 2013)310Randiddle, neat (January 1, 2012) 46,288311Randiddle, Withdrawals 60,000312Income Summary 0410Sales 296,130411Sales Returns and Allowances 10,020412Sales Discounts 7,200510Cost of Goods Sold 30,250520Sales Salaries Expense 34,400521Advertising Expense 18,000522Depreciation Expense 0523Store Supplies Expense 0529Miscellaneous marketing Expense 2,800530Office Salaries Expense 25,50 0531Rent Expense 24,200532Insurance Expense 0533Bad Debt Expense 0539Miscellaneous Administrative Expense 1,650550 Interest Expense 1,100See more Analysis of Starbucks coffee company employees essayRandiddle Co. uses the perpetual inventory formation and the First-in, First-out be method. Transportation-in and grease angiotensin converting enzymes palms 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 al-Qurans along with the Inventory Control Sheet should be updated as each execution affects them (daily).Randiddle Co. sells three types of atom-bomb ovens.The sale prices of each are900 double-u microwave $1991000 west microwave $2991200 watt microwave $499During December, the last month of the accounting year, the following minutes wer e completedDec. 1. Issued check phone subjugate 2632 for the December rent, $2,200. 2. Sold two 1200 watt microwaves for gold.4. Purchased four 1000 watt microwaves on account from level Co., foothold 2/10, n/30, FOB deportation point, $596.5. Issued check soma 2633 to pay the transportation charges on bargain for of December 4, $89. (NOTE Debit Merchandise Inventory. Do not include shipping and purchase discounts to the Inventory Control yellow journalism for thisproject.) 6. Sold six 1000 watt microwaves and four 1200 watt microwaves on account to Briana Co., invoice 891, basis 2/10, n/30, FOB shipping point. 8. Issued check fare 2634 for refund of cash on sales made for cash, $150. (Customer was going to takings goods until an allowance was arranged.) 10. Purchased introduce supplies on account from Prince Co., terms n/30, $310. 10. Issued check to Matt Co. number 2635 for the full measure due, less discount allowed. (Round discount to nigh dollar.)11. Paid Prince Co. full amount due, check number 2636.12. Issued credit memo for one 1000 watt microwave final paymented on sale of December 6. (NOTE Assume the returned microwave was from the 11/30 inventory) 13. Issued check number 2637 for advertising expense for last half of December, $3,000. 14. Received cash from Briana Co. for the full amount due (less return of December 12 and discount round to nearest dollar). 19. Issued check number 2638 to buy five 900 watt microwaves, $495. 19. Issued check number 2639 for $596 to Joseph Co. on account. 20. Sold seven 900 watt microwaves on account to Cameron Co., invoice number 892, terms 1/10, n/30, FOB shipping point. 20. To expedite sale on Dec. 20, issued check number 2640 for shipping charges on sale to Cameron on December 20, $120 (NOTE Cameron Co. will be reimbursing us for this shipping cost). 21. Received $1,396 cash from McKenzie Co. on account, no discount.21. Purchased three 1200 watt microwaves on account from Elisha Co., terms 1/10, n/ 30, FOB shipping point, $747, shipping $78 (NOTE Debit Merchandise Inventory $825, but unaccompanied put $747 in the Inventory Control Sheet). 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 365 for entry required.)26. Issued a debit memo for return of $249 because of damage to one 1200 watt microwave purchased on December 21, receiving credit from the seller.27. Issued check number 2641 for sales salaries of $2,050 and officesalaries of $1,400.28. Purchased store equipment on account from Joseph Co., terms n/30, FOB destination, $1,200.29. Issued check number 2642 for store supplies, $70.29. Purchased seven 1000 watt microwave from Prince Co, terms 1/10, n/30, FOB shipping point, for $1,113 on account, shipping $107. 30. Sold eight 1000 watt microwaves on account to Briana Co., invoice number 893, terms 2/10, n/30, FOB shipping point.30. Received cash from sale of December 20, less discount, prescribed transportation paid on December 20. (Round calculations to the nearest dollar.) 31. Issued check number 2643 for purchase of December 21, less return of December 25 and discount. (Round discount to the nearest dollar.) 31. Issued a debit memo for $200 of the purchase returned from December 28.Instructions1. Enter the balances of each of the accounts in the appropriate balance column of the General Ledger (B-S and I-S Ledger). Write Balance in the item section, and place a (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 denounce 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 journals. 4. Post the adds of the account named columns and individually post the Other Accounts columns as well to the General Ledger. 5. take in 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 maladjusted trial balance on the worksheet.7. Complete the worksheet for the year ended December 31, 2012, using the following tolerance data a. Merchandise inventory on December 31 $1,090b. Insurance expired during the year 2,250c. Store supplies on hand on December 31 850d. 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. increase salaries on December 31Sales salaries$1,075Office salaries 540 $1,615f. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month. g. Calculat e the Bad Debt adjustment amount net realizable value of Accounts Receivable is determined to be $6,313.8. Prepare a multiple-step income statement, a statement of owners equity, and a classified balance sheet in good form. (Recommend review of Current Liabilities on page 149.) 9. Journalize and post the adjusting entries.10. Journalize and post the closing entries. hint closed accounts by inserting a zero in both balance columns opposite the closing entry.11. Prepare a post-closing trial balance.