Project #48047 - Accounting

An inexperienced accountant for Huang Company made the following errors in recording merchandising transactions.

1.   A $302 refund to a customer for faulty merchandise was debited to Sales Revenue $302 and credited to Cash $302.
2.   A $220 credit purchase of supplies was debited to Inventory $220 and credited to Cash $220.
3.   A $204 sales discount was debited to Sales Revenue.
4.   A cash payment of $67 for freight on merchandise purchases was debited to Freight-Out $670 and credited to Cash $670.


Prepare separate correcting entries for each error, assuming that the incorrect entry is not reversed. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 

No.
Account Titles and Explanation
Debit
Credit
1.
 
2.
 
 
 
3.
 
4.
 
 

 

 

 

Exercise 4-3

The adjusted trial balance columns of the worksheet for DeSousa Company are as follows. The owner did not make any additional investments in the business in April. 

DESOUSA COMPANY
Worksheet (partial)
For the Month Ended April 30, 2014
   
Adjusted Trial Balance
Account Titles
 
Dr.
 
Cr.
Cash   11,653    
Accounts Receivable   8,162    
Prepaid Rent   2,424    
Equipment   23,278    
Accumulated Depreciation—Equip.       5,497
Notes Payable       5,720
Accounts Payable       4,877
Owner’s Capital       29,186
Owner’s Drawings   3,353    
Service Revenue       15,885
Salaries and Wages Expense   10,927    
Rent Expense   724    
Depreciation Expense   644    
Interest Expense   25    
Interest Payable       25
    Totals   61,190   61,190
 
Prepare an income statement.

DESOUSA COMPANY
Income Statement
For the Month Ended April 30, 2014
   
 
$
   
$
 
 
 
 
 
 
$
 

Prepare an owner’s equity statement. (List items that increase owner's equity first.)

DESOUSA COMPANY
Owner’s Equity Statement
For the Month Ended April 30, 2014
$
 
$
 

Prepare a classified balance sheet. (List assets in order of liquidity.)

DESOUSA COMPANY
Balance Sheet
April 30, 2014
Assets
           
   
$
     
   
     
   
     
       
$
 
           
   
     
   
 
 
       
$
 
Liabilities and Owner’s Equity
           
   
$
     
   
     
   
     
       
$
 
           
       
 
       
$
 

 

Click if you would like to Show Work for this question:

 

 

 

Exercise 3-10

The income statement of Gopitkumar Co. for the month of July shows net income of $1,840 based on Service Revenue $6,040, Salaries and Wages Expense $2,327, Supplies Expense $1,363, and Utilities Expense $510. In reviewing the statement, you discover the following.

1.   Insurance expired during July of $483 was omitted.
2.   Supplies expense includes $180 of supplies that are still on hand at July 31.
3.   Depreciation on equipment of $224 was omitted.
4.   Accrued but unpaid salaries and wages at July 31 of $404 were not included.
5.   Services performed but unrecorded totaled $518.

Prepare a correct income statement for July 2014.

GOPITKUMAR CO.
Income Statement
For the Month Ended July 31, 2014
   
 
$
   
$
 
 
 
 
 
 
 
$

 

Click if you would like to Show Work for this question:

 

 
 
 
 

Problem 2-3A

Santa Ana Services was formed on May 1, 2014. The following transactions took place during the first month.

Transactions on May 1:

1.   Don Humes invested $40,500 cash in the company, as its sole owner.
2.   Hired two employees to work in the warehouse. They will each be paid a salary of $3,060 per month.
3.   Signed a 2-year rental agreement on a warehouse; paid $22,400 cash in advance for the first year.
4.   Purchased furniture and equipment costing $30,130. A cash payment of $11,300 was made immediately; the remainder will be paid in 6 months.
5.   Paid $1,510 cash for a one-year insurance policy on the furniture and equipment.
6.   Purchased basic office supplies for $570 cash.
7.   Purchased more office supplies for $1,510 on account.
8.   Total revenues earned were $18,830—$7,530 cash and $11,300 on account.
9.   Paid $390 to suppliers for accounts payable due.
10.   Received $3,350 from customers in payment of accounts receivable.
11.   Received utility bills in the amount of $380, to be paid next month.
12.   Paid the monthly salaries of the two employees, totalling $6,120.
 
Prepare journal entries to record each of the events listed. (Record entries in the order displayed in the problem statement. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.
Account Titles and Explanation
Debit
Credit
1.
 
2.
 
3.
 
4.
 
 
5.
 
6.
 
7.
 
8.
 
 
9.
 
10.
 
11.
 
12.
 


 

Post the journal entries to T-accounts. (Post entries in the order of journal entries presented in the previous question.)

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accounts Payable
Owner’s Capital
Service Revenue
Salaries and Wages Expense
Utilities Expense
 

Prepare a trial balance as of May 31, 2014.

SANTA ANA SERVICES
Trial Balance
May 31, 2014
 
Debit
Credit
$
$
Total
$
$

 

Click if you would like to Show Work for this question:

 

 

Subject Business
Due By (Pacific Time) 11/19/2014 05:00 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy