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 $4,400 of inventory was on hand at the end of the accounting period. |
b. |
Record the events in general journal format. |
Events |
General Journal |
Debit |
Credit |
1a. |
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1b. |
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2. |
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3a. |
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3b. |
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4a. |
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4b. |
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5a. |
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5b. |
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6. |
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7a. |
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7b. |
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8. |
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9. |
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10. |
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rev
c. |
Post the beginning balances and the events to the T-accounts. (Record the transactions in the given order. Leave no cells blank – be certain to enter “0” wherever required.) |
: 10_01_2012
d. |
Prepare a multistep income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows (Amounts to be deducted and losses should be indicated with a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Be sure to list the assets in order of their liquidity.) |
P & D ENTERPRISES Income Statement |
For the Year Ended December 31, 2013 |
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$ |
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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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