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College Accounting - Comprehensive Review Problem II - paradigm 5th edition
 
Mills Sporting Goods Store - College Accounting  - Comprehensive Review Problem II - paradigm 5th edition
 
Mills Sporting Goods Store - EXCEL TEMPLATE 
You have now completed the accounting cycle for a merchandising business and are ready to try to put it all together in this second comprehensive review problem.
 
You are keeping the accounting records for Cindi Mills, owner of Mills Sporting Goods Store. You begin with the balances in her accounts and go through the accounting cycle for two months.
 
Directions:
1.      Open accounts in the general ledger with the following balances as of January 1, 20X1
 
Account                                                                      Balance
111                  Cash                                                                            $6,560
112                  Accounts Receivable                                                  2,955
113                  Office Supplies                                                           825
114                  Store Supplies                                                             1,915
115                  Merchandise Inventory                                               13,540
116                  Prepaid Insurance                                                       750
121                  Office Equipment                                                       9,500
121.1               Accumulated Depreciation-Office Equipment           2,600
122                  Store Equipment                                                         16,600
122.1               Accumulated Depreciation-Store Equipment             4,000
123                  Delivery Equipment                                                    13,000
123.1               Accumulated Depreciation-Delivery Equipment        7,000
211                  Accounts Payable                                                       3,880
311                  Cindi Mills, Capital                                                     48,165
312                  Cindi Mills, Drawing
313                  Income Summary
411                  Sales
412                  Sales Returns and Allowances
413                  Sales Discounts
511                  Purchases
512                  Purchases Returns and Allowances
513                  Purchases Discounts
514                  Freight in
611                  Salaries Expense
612                  Rent Expense
613                  Utilities Expense
614                  Office Supplies Expense
615                  Store Supplies Expense
616                  Insurance Expense
617                  Depreciation Expense-Office Equipment
618                  Depreciation Expense-Store Equipment
619                  Depreciation Expense-Delivery Equipment
2.  Open accounts in the accounts receivable ledger with the following balances as of January 1, 20X1:
Customer Name                                            Balance
Henry Galvin                                                  $1,025
Lee Maddox                                                   755
Neagle Co.                                                      1,175
Smitz, Inc                                                        -0-
 
3.  Open accounts in the accounts payable ledger with the following balances as of January 1, 20X1:
Creditor Name                                              Balance
W. Bedford Co.                                              $1,365
Jones Co.                                                         -0-
Lemke Brothers                                              1,540
Wohlers, Inc.                                                   975
 
4. Record the January transactions in a general journal (page 12), a one column sales journal (page26), a purchases journal (page 10), a five-column cash receipts journal (page 11), or a four column cash payments journal (page 9). All credit sales carry terms of 2/10, n/30. Freight on all purchases is charged to the freight in account.
 
20X1
January
2          Paid rent for the month, $1.070, Check No. 234
2          Sold merchandise to Smitz, Inc., $765, Invoice No. 176
4          Collected the balance due from Henry Galvin, less 2% discount
5          Sold merchandise to Henry Galvin, $1,670, Invoice No. 177
6          Collected the balance due from Neagle Co., less 2% discount
7          Issued a credit memorandum to Henry Galvin for the return of defective merchandise sold on January 5, $210
7          Purchased merchandise from Lemke Brothers, $1,045; terms 2/10,n/30; Invoice No. 187
8          Paid W. Bedford Co. the balance due, less 2% discount; Check No. 235
9          Paid Wohlers, Inc., the balance due, less 1% discount; Check No. 236
10        Returned defective merchandise purchased on January 7 from Lemke Brothers, receiving a credit memorandum for $105
10        Collected the balance due from Lee Maddox, Less 2% discount
11        Paid Lemke Brothers the January 1 balance; no discount; Check No 237
12        Received a check from Smitz, Inc., for the amount due from the sale of January 2
14        Purchased merchandise from Jones Co. $2,550; terms, 2/10,n/30; Invoice No. 188
15        Received a check from Henry Galvin for the amount due from the sale of January 5, less the return of January 7
15        Recorded cash sales for the first half of January, $1,665
15        Cindi invested an additional$3,000 cash in the firm
16        Purchased office equipment from Wohlers, Inc., $4,400; terms, 2/30,n/60 Invoice No. 189
17        Sold merchandise to Lee Maddox, $950, Invoice No. 178
17        Paid Lemke Brothers the amount due from the purchase of January 7, less the return of January 10; Check No. 238
18        Purchased office supplies from W. Bedford Co., $860; terms, n/30; Invoice No. 190
19        Returned defective office supplies to W. Bedford Co., receiving a credit memorandum for $110
20        Purchased store supplies from Jones Co.,$555; terms, n/30; Invoice No. 191
22        Cindi invested a used truck valued at $4,700 in the business
23        Sold merchandise to Neagle Co., $820, Invoice No. 179
24        Paid the balance due to Jones Co. from the purchase of January 14; Check No. 239
24        Cindi wrote check No. 240 to pay her home phone bill, $205
25        Sold Merchandise to Smitz, Inc., $1,995, Invoice No. 180
26        Sold store supplies to another firm at cost for cash, $110
27        Issued a credit memorandum to Smitz, Inc., for a shortage from the sale of January 25, $75
27        Purchased merchandise from Jones Co., $750; terms, 2/10,n/30; Invoice No. 192
29        Paid January’s electric bill, $595, Check No. 241
31        Recorded cash sales for the second half of January, $2,445
31        Paid freight on January purchases, $450, Check No. 242
31        Paid salaries for January, $4,450, Check No. 243
 
5. Total all special journals
6. Post all items that need to be posted
7. Prepare a trial balance on a work sheet as of January 31, 20X1
8. Prepare schedules of accounts receivable and accounts payable
9. Complete the worksheet. Adjustment data for January 31 are as follows:
            (a) Office Supplies on hand, $830
            (b) Store Supplies on hand, $750
            (c) Insurance Expired, $20
            (d) Depreciation of office equipment, $90
            (e) Depreciation of store equipment, $125
            (f) Depreciation of delivery equipment, $250
            (g) Merchandise Inventory (beginning), $13,540
            (h) Merchandise Inventory (ending), $12,210
10. Record and post adjusting entries as of January 31.
11. Record and post closing entries as of January 31.
12. Prepare a January 31 post-closing trial balance.
13. Prepare an income statement for the month of January. All salaries are sales salaries.
14. Prepare a statement of owner’s equity for the month of January
15. Prepare a January 31 balance sheet
16. Record the following February transactions
 
 
20X1
February
1          Paid rent for the month, $1,070, Check No. 244
2          Purchased merchandise from Lemke Brothers, $740; terms, 2/10,n/30; Invoice No. 193
3          Returned merchandise purchased from Lemke Brothers on February 2, receiving a credit memorandum for $75
3          Collected the balance due from Lee Maddox
4          Collected the balance due from Smitz, Inc., for the sale of January 25 less the credit of January 27 and less the 2% discount
5          Cindi took home $40 of office supplies for her personal use
6          Sold merchandise to Henry Galvin, $2,140, Invoice No. 181
6          Paid Jones Co. the balance due on purchases of $555 and $750, less a 2% discount on the $750 purchase; Check No. 245
7          Collected the balance due from Neagle Co.
8          Issued a credit memorandum to Henry Galvin for damaged merchandise sold on February 6, $195
9          Purchased merchandise for cash, $375, Check No. 246
11        Paid Lemke Brothers for the balance due from the purchase of February 2, less the return of February 3; Check No. 247
11        Returned $20 of the merchandise purchased on February 9, receiving a cash refund
12        Sold merchandise to Lee Maddox, $1,185, Invoice No. 182
13        Cindi wrote Check No. 248 for personal expenses, $350
14        Recorded cash sales for the first half of the month, $3,095
15        Paid Wohlers, Inc., the balance due, less 2% discount, Check No. 249
16        Received a check from Henry Galvin for the amount due from the sale of February 6, less the return of February 8
17        Sold office supplies for cash, $85
17        Paid W. Bedford Co. the balance due for the purchase of January 18, less the return of January 19; Check No. 250
19        Purchased store supplies from W. Bedford Co. $340; terms, n/30; Invoice No. 194
20        Returned $30 of the store supplies purchased on February 19, receiving credit
21        Purchased merchandise from Lemke Brothers, $940; terms, 2/10,n/30; Invoice No. 195
22        Sold merchandise to Neagle Co., $1,095; Invoice No. 183
24        Purchased merchandise from Jones Co., $1,045; terms, 2/10,n/30; Invoice No 196
25        Sold merchandise to Smitz, Inc., $1,755, Invoice No. 184
26        Purchased store equipment from Wohlers, Inc., $2700; terms 2/30,n/60; Invoice No. 197
27        Paid the electric bill for February, $550, Check No. 251
28        Recorded cash sales for the second half of the month, $2,985
28        Paid freight on February purchases, $435, Check No. 252
28        Paid salaries for February, $4,450, Check No. 253
 
17. Total all special journals.
18. Post all items that need to be posted
19. Prepare a trial balance on a work sheet as of February 28, 20X1
20. Prepare schedules of accounts receivable and accounts payable.
21. Complete the work sheet. Adjustment data for February 28 are as follows
            (a) Office Supplies on hand, $355
            (b) Store Supplies on hand, $275
            (c) Insurance Expired, $20
            (d) Depreciation of office equipment, $90
            (e) Depreciation of store equipment, $125
            (f) Depreciation of delivery equipment, $250
            (g) Merchandise Inventory (beginning), $12.210
            (h) Merchandise Inventory (ending), $12,780
22. Record and post adjusting entries as of February 28.
23. Record and post closing entries as of February 28.
24. Prepare a February 28 post-closing trial balance.
25. Prepare an income statement for the month of February. All salaries are sales salaries.
26. Prepare a statement of owner’s equity for the month of February.
27. Prepare a February 28 balance sheet.
 
Check figures for January only.
 
Net Loss: 4,946.75  Total Assets: 57,168.25  Cash Balance: 4,823.25
 
 
SOLUTION PREVIEW
CRP II Use an X instead of a check mark symbol, when needed. Data Entry Cells
 
1., 6., 10., 11., 18., 22., 23.
General Ledger
ACCOUNT 
Cash
ACCOUNT NO.
111
DATE
ITEM
P.R.
DEBIT
CREDIT
BALANCE
DEBIT
CREDIT
20X1
Jan.
1
Balance
 
 
 
        6,560.00
 
 
31
Cash Receipts Journal
 
    12,296.40
 
      18,856.40
 
 
31
Cash Payment Journal
 
 
      14,033.15
        4,823.25
 
Feb.
28
Cash Receipts Journal
 
    11,742.70
 
      16,565.95
 
 
28
Cash Payment Journal
 
 
      14,233.70
        2,332.25
 
ACCOUNT 
Accounts Receivable
ACCOUNT NO.
112
DATE
ITEM
P.R.
DEBIT
CREDIT
BALANCE
DEBIT
CREDIT
20X1
Jan.
1
Balance
 
 
 
        2,955.00
 
 
7
General Journal
 
 
            210.00
        2,745.00
 
 
27
General Journal
 
 
              75.00
        2,670.00
 
 
31
Sales Journal
 
      6,200.00
 
        8,870.00
 
 
31
Cash Receipt Jornal
 
 
        5,180.00
        3,690.00
 
Feb.
8
General Journal
 
 
            195.00
        3,495.00
 
 
28
Sales Journal
 
      6,175.00
 
        9,670.00
 
 
28
Cash Receipt Jornal
 
 
        5,635.00
        4,035.00
 
 
Mills Sporting Goods Store - EXCEL TEMPLATE
 
File name: CRPII-2.xls File type: application/vnd.ms-excel Price: $75