I\'m needing every part of this question answered in detail. I\'m having such a

Question

I'm needing every part of this question answered in detail. I'm having such a hard time with it. Thank you.

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.
July 1: Paid rent for July, $4,000.
July 3: Purchased merchandise on account from Lingard Co., terms 2/10, n/30, FOB shipping point, $25,000.
July 4: Paid freight on purchase of July 3, $1,000.
July 6: Sold merchandise on account to Holt Co., terms 2/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000.
July 7: Received $18,000 cash from Flatt Co. on account, no discount.
July 10: Sold merchandise for cash, $90,000. The cost of the merchandise sold was $50,000.
July 13: Paid for merchandise purchased on July 3, less discount.
July 14: Received merchandise returned on sale of July 6, $7,000. The cost of the merchandise returned was $4,500.
July 15: Paid advertising expense for last half of July, $9,000.
July 16: Received cash from sale of July 6, less return of July 14 and discount.
July 19: Purchased merchandise for cash, $22,000.
July 19: Paid $23,100 to Carino Co. on account, no discount.
July 20: Sold merchandise on account to Reedley Co., terms 1/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $25,000.
July 21: For the convenience of the customer, paid freight on sale of July 20, $1,100.
July 21: Received $17,600 cash from Owen Co. on account, no discount.
July 21: Purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB destination, $32,000.
July 24: Returned $5,000 of damaged merchandise purchased on July 21, receiving credit from the seller.
July 26: Refunded cash on sales made for cash, $12,000. The cost of the merchandise returned was $7,200.
July 28: Paid sales salaries of $22,800 and office salaries of $15,200.
July 29: Purchased store supplies for cash, $2,400.
July 30: Sold merchandise on account to Dix Co., terms 2/10, n/30, FOB shipping point, $18,750. The cost of the merchandise sold was $11,250.
July 30: Received cash from sale of July 20, less discount, plus freight paid on July 21.
July 31: Paid for purchase of July 21, less return of July 24 and discount.

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

Itis practically impossible to answer each part of this question within the time frame. Therefore, I am providing with the journal entries (Part 1) of the question.

_________

The journal entries are as follows:

Date Account Titles Debit Credit July 01 Rent Expense $4,000 Cash $4,000 (To record rent paid for July) July 03 Merchandise Inventory $25,000 Accounts Payable—Lingard Co $25,000 (To record inventory purchased on credit) July 04 Merchandise Inventory $1,000 Cash $1,000 (To record freight paid for inventory) July 06 Accounts Receivable—Holt Co. $40,000 Sales $40,000 (To record sale of goods on credit) July 06 Cost of Merchandise Sold $24,000 Merchandise Inventory $24,000 (To record cost of goods sold) July 07 Cash $18,000 Accounts Receivable—Flatt Co. $18,000 (To record collection of cash from Flatt Co.) July 10 Cash $90,000 Sales $90,000 (To record sale of goods for cash) July 10 Cost of Merchandise Sold $50,000 Merchandise Inventory $50,000 (To record cost of goods sold) July 13 Accounts Payable—Lingard Co $25,000 Cash (25,000 – 2%*25,000) $24,500 Merchandise Inventory (25,000*2%) $500 (To record payment for July 3 purchases) July 14 Sales Returns and Allowances $7,000 Accounts Receivable—Holt Co. $7,000 (To record return of merchandise sold) July 14 Merchandise Inventory $4,500 Cost of Merchandise Sold $4,500 (To record the cost of returned merchandise) July 15 Advertising Expense $9,000 Cash $9,000 (To record payment of advertisement expenses) July 16 Cash (33,000 – 660) $32,340 Sales Discounts [(40,000 – 7,000)*2%] $660 Accounts Receivable—Holt Co. (40,000 - 7,000) $33,000 (To record collection of cash from Holt Co.) July 19 Merchandise Inventory $22,000 Cash $22,000 (To record purchase of merchandise for cash) July 19 Accounts Payable—Carino Co. $23,100 Cash $23,100 (To record payment to Carino Co.) July 20 Accounts Receivable—Reedley Co. $40,000 Sales $40,000 (To record sale of goods on credit) July 20 Cost of Merchandise Sold $25,000 Merchandise Inventory $25,000 (To record cost of goods sold) July 21 Accounts Receivable—Reedley Co. $1,100 Cash $1,100 (To record payment of freight for goods sold) July 21 Cash $17,600 Accounts Receivable—Owen Co. $17,600 (To record collection of cash from Owen Co.) July 21 Merchandise Inventory $32,000 Accounts Payable—Munson Co. $32,000 (To record purchase of merchandise) July 24 Accounts Payable—Munson Co. $5,000 Merchandise Inventory $5,000 (To record return of damaged goods to Munson Co.) July 26 Sales Returns and Allowances $12,000 Cash $12,000 (To record refund of cash sales) July 26 Merchandise Inventory $7,200 Cost of Merchandise Sold $7,200 (To record the cost of returned merchandise) July 28 Sales Salaries Expense $22,800 Office Salaries Expense $15,200 Cash $38,000 (To record payment of salaries) July 29 Store Supplies $2,400 Cash $2,400 (To record purchase of store supplies for cash) July 30 Accounts Receivable—Dix Co. $18,750 Sales $18,750 (To record sale of goods on credit) July 30 Cost of Merchandise Sold $11,250 Merchandise Inventory $11,250 (To record cost of goods sold) July 30 Cash (41,100 – 400) $40,700 Sales Discounts [(40,000)*1%] $400 Accounts Receivable—Reedley Co. $41,100 (To record collection of cash from Reedley Co.) July 31 Accounts Payable—Munson Co. (32,000 – 5,000) $27,000 Cashc(27,000 – 270) $26,730 Merchandise Inventory (27,000*1%) $270 (To record payment for July 21 purchases)

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