Q1 ACCT 211-02, winter 2018 Name: P-1. Prepare any necessary journal entries for

Question

Q1 ACCT 211-02, winter 2018 Name: P-1. Prepare any necessary journal entries for the following merchandising transactions On 7/2, purchased inventory at $70,000 in cash. On 8/1 sold inventory costing $10,000 for $17,000 on credit, 2/20, n/60. On 9/1, received the full payment for the transaction on 8/1. P-2. The following information is the adjusted trial balance of Coyote Company for the year ended on 12/31/2017: DebitCredit $1,560 2,100 3,120 90 300 Cash Accounts receivable Inventory Prepaid insurance Equipment Accumulated depreciation-equipment Accounts payable Unearned service revenue Common stock Retained earnings Sales revenue Rent revenue Salaries and wages expense Utility expense 50 80 120 210 6,610 270 50 160 Total S7390 300 Instructions: Prepare 1. Income statement for the year ended on 12/31/2017, 2. Statement of retained earnings for the year ended on 12/31/2017, and 3. Balance sheet as of 12/31/2017.

Explanation / Answer

P-1 Journal Entries Date Account Title Debit Credit 7/2 Inventory 70000 Cash 70000 (Purchase of inventory in cash) 8/1 Accounts Receivable 17000 Sales 17000 (Sales of goods on account) Cost of goods sold 10000 Inventory 10000 (Cost of the goods sold) 9/1 Cash 17000 Accounts Receivable 17000 (Payment received for the sale on 8/1) P-2 Income statement for the year ended December 31, 2017 Sales Revenue 270 Rent Revenue 50 Total Revenue 320 Expenses: Salaries and wages 160 Utitility Expenses 60 220 Net income 100 Statement of Retained Earnings for the year ended December 31, 2017 Balance as at Janauray 1, 2017 6610 Ad: Net income for the year 100 Balance as at December 31, 2017 6710 Balance Sheet as at Deceber 31, 2017 Assets Cash 1560 Accounts receivable 2100 Inventory 3120 Prepaid Insurance 90 Curent Assets 6870 Equipment 300 Accumulated depreciation 50 250 Total Assets 7120 Liabilities and stockholders' equity Accounts Payable 80 Unearned Service Revenue 120 Total Liabilities 200 Stockholders' Equity Common Stock 210 Retained Earnings 6710 Total Stockholders' Equity 6920 Total Liabilities and stockholders' equity 7120

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.