Accounting 291 Comprehensive Problem Fall Semester 2013 The Baker Company is a merchandising enterprise that uses the perpetual inventory system.

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Accounting 291 Comprehensive Problem Fall Semester 2013 The Baker Company is a merchandising enterprise that uses the perpetual inventory system. Account balances for the company as of September 30, 2013, the last day of the fiscal year, are as follows: Cash $ 31,165 Accounts Receivable 126,100 Merchandise Inventory 435,000 Prepaid Insurance 10,600 Store Supplies 3,750 Office Supplies 1,700 Store Equipment 225,000 Accumulated Depreciation -Store Equipment 40,300 Office Equipment 72,000 Accumulated Depreciation -Office Equipment 17,200 Accounts Payable 66,700 Salaries Payable 0 Unearned Rent 1,200 Notes Payable: Due within 12 months 35,000 Due beyond 12 months 160,000 Bertha Baker, Capital 332,100 Bertha Baker, Drawing 50,000 Sales 1,147,500 Sales Returns & Allowances 15,500 Sales Discounts 6,000 Cost of Merchandise Sold 601,200 Sales Salaries Expense 86,400 Advertising Expense 29,450 Depreciation Expense – Store Equipment 0 Store Supplies Expense 0 Miscellaneous Selling Expense 1,885 Office Salaries Expense 60,000 Rent Expense 30,000 Insurance Expense 0 Depreciation Expense – Office Equipment 0 Office Supplies Expense 0 Miscellaneous Administrative Expense 1,650 Rent Income 0 Interest Expense 12,600 2 Data needed for year-end adjustments follow: Physical merchandise inventory on September 30 $418,500 Insurance expired during the year 6,000 Supplies on hand on September 30: Store Supplies 1,500 Office Supplies 700 Depreciation for the year: Store Equipment 8,500 Office Equipment 4,500 Salaries Payable as of September 30: Sales Salaries 3,450 Office Salaries 2,550 Unearned Rent as of September 30 400 Instructions: a. Prepare a work sheet for the fiscal year ended September 30, 2013. (Form 10W) [Example: page 176B] b. Prepare a multiple-step income statement for the fiscal year ended September 30, 2013. (Form 3C) [Example: page 256) c. Prepare a statement of owner’s equity for the fiscal year ended September 30, 2013, assuming no additional investments by the owner…

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