Ocean Atlantic Co. is a merchandising business. The account balances for Ocean A

Question

Ocean Atlantic Co. is a merchandising business. The account balances for Ocean Atlantic Co. as of July 1, 2012 (unless otherwise indicated), are as follows:

Part 1: On your own paper, in the working papers, or using a spreadsheet, enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column.

Journalize the transactions for July below.

Part 2: Post the journal to the general ledger you created in Part 1, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.

Part 3: Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank or enter "0".

Part 4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

Part 6. Journalize the adjusting entries. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Post the adjusting entries to the paper, work sheet, or spreadsheet you used in parts 1 and 2.

Part 7: You must complete parts 1, 2, 3, 4 and 6 before completing part 7.

Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank or enter "0".

Part 8: You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8.

1. Prepare an income statement.
2. Prepare a statement of retained earnings.
3. Prepare a balance sheet.

Part 9: You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9.

Journalize the closing entries.

Post the adjusting entries to the paper, work sheet, or spreadsheet you used in part 6. Insert the new balance in the retained earnings account.

If an amount box does not require an entry, leave it blank or enter "0".

Part 10: You must complete parts 1, 2, 3, 4, 6, 7, 8 and 9 before attempting to complete part 10.

Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank or enter "0".

Explanation / Answer

*Note: You cannot have all your questions answered in one

Trial Balance Description Dr Cr 110 Cash 63600 112 Accounts receivable 153900 115 Merchandise inventory 602400 116 Prepaid insurance 16800 117 Store Supplies 11400 123 Store Equipment 469500 124 Accumulated depreciation 56700 210 Accounts payable 96600 210 Salaries payable 0 310 Capital Stock 75000 311 Retained earning 480300 312 Dividends 135000 313 Income Summary 410 Sales 3221100 411 Sales return & allowances 92700 412 Sales discount 59400 510 Cost of Merchandise sold 1623000 520 Sales salaries expenses 334800 521 Advertising expenses 81000 522 Depreciation 0 523 Store Supplies expense 0 529 Misc Selling expense 12600 530 Office salaries expenses 182100 531 Rent expenses 83700 532 Insurance expense 0 539 Misc Administrative expenses 7800 3929700 3929700

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