PLEASE HELP 1) QTR 2 Understanding of Chapter 7 is required prior to starting th
ID: 2446388 • Letter: P
Question
PLEASE HELP
1) QTR 2 Understanding of Chapter 7 is required prior to starting these transactions.
16 4/6/2015 Collected $137,000 from customers from sales made on account.
17 4/8/2015 A sale was made for $70,000 on account, and $34,000 worth of inventory was shipped out.
18 4/13/2015 Wrote off a receivable that amounted to $2,400 against the allowance.
19 4/29/2015 Paid $60,000 to vendors (who were getting very angry that Behrend Corp was taking so long to pay), plus $4,000 of utilities that had been accrued.
20 4/30/2015 The company paid $49,000 of operating expenses, including utilities, insurance and wages.
21 5/7/2015 Inventory was purchased for $87,000, on account.
22 5/11/2015 A sale was made for $93,000 on account, and $47,000 worth of inventory was shipped out.
23 5/12/2015 Collected $95,000 from customers from sales made on account.
24 5/20/2015 Inventory was purchased for $63,000, on account.
25 5/29/2015 $23,000 was paid for operating expenses, including utilities, insurance and wages.
26 6/3/2015 Paid $109,700 on accounts payable.
27 6/13/2015 A sale was made for $110,000 on account, and $56,000 worth of inventory was shipped out.
28 6/17/2015 $27,800 was paid for operating expenses including insurance and wages for June.
29 6/27/2015 Recorded the adjustment to recognize the use of the second quarter's rent, which was prepaid.
30 6/28/2015 Paid dividends to the common stockholders in the amount of $5,000.
Date General Journal Debit Credit
4/6/2015
4/8/2015
4/13/2015
4/29/2015
4/30/2015
5/7/2015
5/11/2015
5/12/2015
5/20/2015
5/29/2015
6/3/2015
6/13/2015
6/17/2015
6/27/2015
6/28/2015
SECOND QUARTER CHECK
2)
Trial Balance Beg Debit Bal Beg Credit Bal Debit Credit End Debit Bal End Credit Bal
Cash 48,400 48,400
Accounts Receivable 165,500 165,500
Allowance for Doubtful Accounts 5,000 5,000
Inventory 43,200 43,200
Prepaid Rent 4,000 4,000
Land - -
Building - -
Accumulated Depreciation - -
Accounts Payable 140,700 140,700
Utilities Payable 4,000 4,000
Interest Payable - -
Line of Credit (short-term) - -
Note Payable (long-term) - -
Common Stock 50,000 50,000
Preferred Stock - -
Additional Paid in Capital - PS - -
Treasury Stock - -
Additional Paid in Capital - TS - -
Retained Earnings 68,000 68,000
Sales Revenue 235,000 235,000
Cost of Goods Sold 128,800 128,800
Operating Expense 112,800 112,800
Interest Expense - -
Dividends - -
SECOND QUARTER CHECK 502,700 502,700 - - 502,700 502,700
3)
Financial Statements
Income Statement Income Statement
Qtr Ended 6/30/15 Year to Date 6/30/15
Net Sales - 235,000
Cost of Goods Sold
Gross Margin - 235,000
Operating Expenses
Operating Income - 235,000
Interest Expense
Net Income - 235,000
Statement of Changes Statement of Changes
in Retained Earnings in Retained Earnings
Qtr Ended 6/30/15 Year to Date 6/30/15
Beginning Retained Earnings 61,400 68,000
Plus: Net Income
Less: Dividends
Ending Retained Earnings 61,400 68,000
Balance Sheet Balance Sheet
As of 6/30/15 As of 6/30/15
Cash
Accounts Receivable - NRV
Inventory
Prepaid Rent
Land
Building - Net of A/D
Total Assets - -
Accounts Payable
Utilities Payable
Interest Payable
Line of Credit (short-term)
Note Payable (long-term)
Total Liabilities - -
Common Stock - no par
Preferred Stock - $30 par
Additional Paid in Capital - PS
Retained Earnings
Less: Treasury Stock
Total Equity - -
Total Liabilities and Equity - -
CHECK: - -
Explanation / Answer
General Journal DR CR 04-06-2015 Cash 137000 Accounts Receivable 137000 4/8/2015 Accounts Receivable 70000 Cost Of goods sold 34000 Inventory 34000 Sales 70000 4/13/2015 Allowance For Bad debt 2400 Accounts Receivable 2400 4/29/2015 Account Payable 60000 Interest Payable 4000 Cash 64000 4/30/2015 operating expenses 49000 Cash 49000 05-07-2015 Inventory 87000 Account Payable 87000 05-11-2015 Accounts Receivable 93000 Cost Of goods sold 47000 Inventory 47000 Sales 93000 5/12/2015 Cash 95000 Accounts Receivable 95000 5/20/2015 Inventory 63000 Account Payable 63000 5/29/2015 operating expenses 23000 Cash 23000 6/3/2015 Account Payable 109700 Cash 109700 6/13/2015 Accounts Receivable 110000 Cost Of goods sold 56000 Inventory 56000 Sales 110000 6/17/2015 operating expenses 27800 Cash 27800 . 6/27/2015 Rent 4000 Prepaid Rent 4000 6/28/2015 Dividend 5000 Cash 5000 Openning Closing Balance DR CR DR CR Accounts Payable 140700 169700 150000 1,21,000 Accounts Receivable 1,65,500 273000 234400 2,04,100 Accumulated Depreciation 0 Allowance for Doubtful Accounts 5,000 2400 2,600 Building 0 Cash 48,400 232000 278500 1,900 Common Stock 50,000 50,000 Cost of Goods Sold 128800 137000 2,65,800 Dividends 5000 5,000 Interest Payable 0 Inventory 43,200 150000 137000 56,200 Land 0 Operating Expense 1,12,800 99800 2,12,600 Prepaid Rent 4,000 4000 0 Rent 4000 4,000 Retained Earnings 68000 68,000 Sales Revenue 2,35,000 273000 5,08,000 Utilities Payable 4,000 4000 0 5,02,700 5,02,700 10,76,900 1076900 749600 749600 Financial Statements Qtr Ended 6/30/15 Net Sales 5,08,000 Cost of Goods Sold 2,65,800 Gross Margin 2,42,200 Operating Expenses 2,12,600 Rent 4000 Net Income 25,600 Statement of Changes Retained Earnings Beginning Retained Earnings 68000 Plus: Net Income 25,600 Less: Dividends 5000 Ending Retained Earnings 88,600 Balance Sheet As of 6/30/2015 Cash 1900 Inventory 56,200 Accounts Receivable 2,04,100 Less Allowance -2,600 Total Assets 2,59,600 Accounts Payable 1,21,000 Common Stock 50,000 Retained Earnings 88,600 Total Liabilities and Equity 2,59,600
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