at the beginning of 2013 p d enterprises had the following balances in its accounts 509088
Aug 29, 2021 | Uncategorized
| At the beginning of 2013, P & D Enterprises had the following balances in its accounts: |
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| Cash |
$13,800 |
| Inventory |
6,000 |
| Land |
3,300 |
| Common stock |
11,000 |
| Retained earnings |
12,100 |
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| During 2013, P & D Enterprises experienced the following events: |
| 1. |
Purchased inventory costing $12,500 on account from Stone Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $930 were paid in cash. |
| 2. |
Returned $600 of the inventory that it had purchased because the inventory was damaged in transit. The seller agreed to pay the return freight cost. |
| 3. |
Paid the amount due on its account payable to Stone Company within the cash discount period. |
| 4. |
Sold inventory that had cost $10,500 for $18,500. The sale was on account under terms 2/10, n/45. |
| 5. |
Received merchandise returned from a customer. The merchandise had originally cost $1,850 and had been sold to the customer for $2,400 cash. The customer was paid $2,400 cash for the returned merchandise. |
| 6. |
Delivered goods in Event 4 FOB destination. Freight costs of $820 were paid in cash. |
| 7. |
Collected the amount due on accounts receivable within the discount period. |
| 8. |
Sold the land for $6,100. |
| 9. |
Recognized $350 of accrued interest revenue . |
| 10. |
Took a physical count indicating that $4,400 of inventory was on hand at the end of the accounting period. |
| b. |
Record the events in general journal format. |
| Events |
General Journal |
Debit |
Credit |
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| 2. |
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| 3b. |
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| 4a. |
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| 4b. |
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| 6. |
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| 7a. |
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| 7b. |
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| 8. |
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| 9. |
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| 10. |
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| c. |
Post the beginning balances and the events to the T-accounts. (Record the transactions in the given order. Leave no cells blank – be certain to enter “0” wherever required.) |
: 10_01_2012
| d. |
Prepare a multistep income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows (Amounts to be deducted and losses should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Be sure to list the assets in order of their liquidity.) |
P & D ENTERPRISES
Income Statement |
| For the Year Ended December 31, 2013 |
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$ |
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| Operating expenses |
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$ |
| Nonoperating items |
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$ |
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P & D ENTERPRISES
Statement of Changes in Stockholders’ Equity
For the Year 2013 |
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$ |
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$ |
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$ |
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| Total stockholders’ equity |
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$ |
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P & D ENTERPRISES
Balance Sheet
As of December 31, 2013 |
| Assets |
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$ |
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| Total assets |
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$ |
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| Liabilities |
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$ |
| Stockholders’ equity |
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$ |
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| Total stockholders’ equity |
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$ |
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| Total liabilities and stockholders’ equity |
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$ |
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P & D ENTERPRISES
Statement of Cash Flows
For the Year Ended December 31, 2013 |
| Cash flows from operating activities: |
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$ |
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| Net cash flow from operating activities |
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$ |
| Cash flows from investing activities |
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| Cash flows from financing activities |
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| Ending cash balance |
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$ |
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Chap-4-HW.docx