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:
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
|
|
||||
File name: CRPII-Mills sporting.xls File
type: xls PRICE: $75
