Project #122250 - Accounting 2301

Accounting 2301 Instructions and Information for the Case

1

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  1. 1)  Using the information given below (Trial Balance as of Feb. 28), enter the beginning balances in the T- Accounts in the Accounting Records Package. On page 2 note the format of the Financial Statements that were produced based on the Trial Balance as of Feb. 28 (single step income statement and classified balance sheet).

  2. 2)  Use the descriptions of the March transactions which are on page 3 to journalize all of the entries for March in the journal provided in the Accounting Records Package.

  3. 3)  Post each entry into the T-Accounts provided in the Accounting Records Package. When finished posting, calculate the account balance for each T-Account and enter the balance on the Unadjusted Trial Balance on the form provided. Then, use the information found on the bottom of page 3 and any account balance information that is needed to journalize and post the adjusting entries. Calculate each account balance.

  4. 4)  Using the T-Account balances, create an Adjusted Trial Balance on the form provided in the Accounting Records Package.

  5. 5)  Using the provided templates in the Accounting Records Package, prepare the:

    1. Income Statement

    2. Statement of Retained Earnings

    3. Balance Sheet

  6. 6)  Write the four closing entries in the journal and post them to the T-Accounts and calculate the ending

    balance for each account.

  7. 7)  Create the Post Closing Trial Balance on the form provided in the Accounting Records Package. a

    Trial Balance as of February 28, 2015

  page1image17280

Debit

page1image18456

Credit

Cash

page1image21264

8,000

page1image22432

Accounts Receivable

2,000

page1image25944
page1image26944 page1image27424

Merchandise Inventory

7,000

page1image31152

Supplies

100

 

Prepaid Insurance

page1image34440

0

page1image35608

Equipment

11,000

page1image39296

Accumulated Depreciation

  page1image42152

6,000

Accounts Payable

  page1image46240

290

Salaries Payable

 

50

Unearned Revenue

  page1image52064

0

Common Stock

  page1image56152

10,000

Retained Earnings

 

7,760

Dividends

10,000

page1image62384

Sales Revenue

  page1image66024

63,000

Sales Discounts

1,000

 

Cost of Goods Sold

29,000

page1image72376

Rent Expense

6,600

 

Salary Expense

8,200

 

Supplies Expense

1,200

 

Depreciation Expense

0

 

Insurance Expense

3,000

 

Totals

87,100

87,100

Financial Statements

2

San Antonio Home Furnishings Company

page2image5248

Income Statement

page2image6536

For the Eleven Months Ended, February 28, 2015

page2image8768 page2image9192 page2image9352 page2image9776 page2image9936 page2image10096 page2image10520 page2image10680 page2image10840 page2image11000

Sales Revenue

63,000

page2image12096 page2image12256 page2image12416 page2image12840 page2image13000 page2image13160 page2image13320 page2image13480 page2image13640 page2image13800

Less: Sales Discounts

1,000

page2image14936 page2image15096 page2image15256 page2image15680 page2image15840 page2image16000 page2image16160 page2image16320 page2image16480 page2image16640

Net Sales

62,000

page2image17736 page2image17896 page2image18056 page2image18480 page2image18640 page2image18800 page2image18960 page2image19120 page2image19280 page2image19440

Cost of Goods Sold

29,000

page2image20616 page2image20776 page2image20936 page2image21096 page2image21520 page2image21680 page2image21840 page2image22000 page2image22160 page2image22320 page2image22480

Gross Profit

33,000

page2image23576 page2image23736 page2image23896 page2image24320 page2image24480 page2image24640 page2image24800 page2image24960 page2image25120 page2image25280

Expenses:

page2image25888 page2image26048 page2image26208 page2image26632 page2image26792 page2image26952 page2image27112 page2image27272 page2image27432 page2image27592

Rent Expense

6,600

page2image28688 page2image28848 page2image29008 page2image29432 page2image29592 page2image29752 page2image29912 page2image30072 page2image30232 page2image30392

Salary Expense

8,200

page2image31488 page2image31648 page2image31808 page2image32232 page2image32392 page2image32552 page2image32712 page2image32872 page2image33032 page2image33192

Supplies Expense

1,200

page2image34288 page2image34448 page2image34608 page2image35032 page2image35192 page2image35352 page2image35512 page2image35672 page2image35832 page2image35992

Depreciation Expense

0

page2image37088 page2image37248 page2image37408 page2image37832 page2image37992 page2image38152 page2image38312 page2image38472 page2image38632 page2image38792

Insurance Expense

3,000

page2image39888 page2image40048 page2image40208 page2image40368 page2image40792 page2image40952 page2image41112 page2image41272 page2image41432 page2image41592 page2image41752

Total Expenses

19,000

page2image42848 page2image43008 page2image43168 page2image43328 page2image43752 page2image43912 page2image44072 page2image44232 page2image44392 page2image44552 page2image44712

Net Income

14,000

page2image47136 page2image47456

San Antonio Home Furnishings Company

page2image50944

Statement of Retained Earnings

page2image52152 page2image52312

For the Eleven Months Ended, February 28, 2015

page2image54544 page2image54968 page2image55128 page2image55552 page2image55712 page2image55872 page2image56296 page2image56456 page2image56616 page2image56776

Retained Earnings, April 1, 2014

7,760

page2image57992 page2image58152 page2image58312 page2image58736 page2image58896 page2image59056 page2image59216 page2image59376 page2image59536 page2image59696

Plus Net Income

page2image60384 page2image60544 page2image60704

Less Dividends

14,000

page2image61800 page2image61960 page2image62120 page2image62544 page2image62704 page2image62864 page2image63024

10,000

page2image63632 page2image63792 page2image63952 page2image64112 page2image64536 page2image64696 page2image64856 page2image65016 page2image65176 page2image65336 page2image65496

Increase in Retained Earnings

4,000

page2image66672 page2image66832 page2image66992 page2image67152 page2image67576 page2image67736 page2image67896 page2image68056 page2image68216 page2image68376 page2image68536

Retained Earnings, Feb. 28, 2015

11,760

page2image71080 page2image71400
page2image73200 page2image73624 page2image74048 page2image74472 page2image74896 page2image75320

San Antonio Home Furnishings Company

Balance Sheet

February 28, 2015

Assets

 

Liabilities

Current Assets

     

Current Liabilities

   

Cash

8,000

   

Accounts Payable

290

 

Accounts Receivable

2,000

   

Salaries Payable

50

 

Merchandise Inventory

7,000

   

Unearned Revenue

-

 

Supplies

100

   

Total Current Liab

 

340

Prepaid Insurance

-

         

Total Current Assets

 

17,100

       

Plant Assets

     

Stockholder's Equity

   

Office Equipment

11,000

   

Common Stock

10,000

 

Less: Accum Depr

6,000

   

Retained Earnings

11,760

 

Total Plant Assets

 

5,000

 

Total SE

 

21,760

page2image110984

Total Assets

 

22,100

 

Total Liab & SE

 

22,100

page2image117160
             

 

a
March Transactions:

Date

Mar. 1 Mar. 1 Mar. 2 Mar. 2 Mar. 3 Mar. 4 Mar. 6 Mar. 7 Mar. 8

Mar. 9

Mar. 9

Mar. 18 Mar. 18 Mar. 31

Supplies are purchased for cash $900.

One year of insurance is purchased for cash, costing $3,600.

Paid rent expense of $800 for current month.

Supplies are purchased on account for $300.

Received cash from customers on account, $1,000.

Paid creditor on account, $150.

Paid $550 of salaries to employees, of which $50 is accrued from the prior month.

Received $2,500 from a customer in advance of providing the service.

Purchased merchandise from Lamp Co. on account, $10,500 terms FOB Shipping Point, 2/10, n/30.

Paid $100 to San Antonio Pickup Service for transportation cost in connection with the purchase from the Lamp Co.

Sold merchandise on account to Osgood Co., $12,800, terms FOB Shipping Point, 2/10, n/30. The cost of the merchandise sold was $6,000.

Received a check from Osgood Co. for the sale on Mar. 9, less the discount. Paid Lamp Co. for the merchandise purchased on Mar. 8, less the discount. Dividends of $2,000 are paid.

3

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Additional Information for Adjusting Entries:

  1. (a)  Supplies on hand at the end of the year, March 31, are $200.

  2. (b)  Record one month of insurance expense for March 31.

  3. (c)  Depreciation of Equipment for the year, $1,000.

  4.  

Subject Business
Due By (Pacific Time) 04/17/2016 11:59 pm
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