Financial Accounting
Comprehensive Problem
INSTRUCTIONS:
1. Prepare the journal entries for May.
2. Prepare the general ledger to indicate your balances
3. Prepare the Trial Balances.
4. Journalize the adjusting entries and complete Adj. TB
5. Prepare a multi step Income Statement.
6. Prepare a statement of Retained Earnings.
7. Prepare a report form of Balance Sheet.
8. Journalize the closing entries.
9. Prepare a post closing trial balance.
COMPREHENSIVE PROBLEM # 2
Fluorescent Co. is a merchandising business. The account balances for Fluorescent Co. as of May 1, 2010(unless otherwise indicated), are as follows:
110
Cash
$ 19,160
111
Notes Receivable
$ 5,000
112
Accounts Receivable
$ 31,220
115
Merchandise Inventory
$153,900
116
Prepaid Insurance
$ 3,750
117
Store Supplies
$ 2,550
123
Store Equipment
$104,300
124
Accumulated Depreciation—Store Equipment
$ 12,600
210
Accounts Payable
$ 18,450
211
Salaries Payable
310
Common Stock
$113,280
311
Retained Earnings
312
Dividends
$ 10,000
313
Income Summary
410
Sales
$815,750
412
Sales Returns and Allowances
$ 20,600
413
Sales Discounts
$ 13,200
420
Interest Revenue
$ 50
510
Cost of Merchandise Sold
$460,500
520
Sale Salaries Expense
$ 64,400
521
Advertising Expense
$ 18,000
522
Depreciation Expense
523
Store Supplies Expense
529
Miscellaneous Selling Expense
$ 2,800
530
Office Salaries Expense
$ 30,500
531
Rent Expense
$ 18,600
532
Insurance Expense
539
Miscellaneous Administrative Expense
$ 1,650
During May, the last month of the fiscal year, the following transactions were completed.
May 1
Paid Rent for May $2,000.
May 3
Purchased merchandise on account from Tredwell Co., terms 2/10, N/30, FOB shipping point, $10,000.
May 4
Paid Transportation charges on purchase of May 3, $375.
May 6
Sold merchandise on account to Parish CO., Terms 2/10, n/30, FOB shipping point, $8,500. The cost of the merchandise sold was $5,000.
May 7
Received $6,500 cash from Oxford Co. on account, no discount
May 10
Sold Merchandise for cash, $15,300. The cost of the merchandise sold was $9,000.
May 13
Paid for merchandise purchased on May 3, less discount
May 14
Received merchandise returned on sale of May 6, $1,500. The cost of the merchandise returned was $900.
May 15
Paid advertising expense for last half of May, $1,500
May 16
Received cash from sale of May6, less return of May 14, and discount.
May 19
Purchased merchandise for cash, $7,400.
May 19
Paid $5,950 to Lipham Co. on account, no discount.
May 20
Sold merchandise on account to Petroski Co., terms 1/10, n/30, FOB shipping point, $15,000. The cost of the merchandise is $9,000.
May 21
For the convenience of the customer, paid shipping charges on sale of May $600.
May 21
Received $11,750 cash from Grant Co. on account, no discount.
May 21
Purchased merchandise on account from Walden Co., terms 1/10, n/30, FOB shipping point, $15,000.
May 24
Returned $3,500 of damaged merchandise purchased on May 21, receiving credit from the seller.
May 26
Refunded cash on sales made for cash, $600. The cost of the merchandise turned was $360.
May 28
Paid sales salaries of $2,750 and office salaries of $1,220.
May 29
Purchased store supplies for cash $350.
May 30
Sold merchandise on account to Hartel Co., terms 2/10, n/30, FOB shipping point, $23,100. The cost of the merchandise sold was $13,200.
May 30
Received cash from sale of May 20, less discount, plus transportation paid on may 21.
May 31
Paid for purchase of May 21, less return of May 24 and discount.
ADJUSTING ENTRIES:
A.
Merchandise inventory on May 31
$139,750
B.
Insurance expired during the year
$1,250
C.
Store supplies on hand May 31
$1,050
D.
Depreciation for the current year
$7,400
E.
Accrued salaries on May 31:
Sales Salaries
Office Salaries
$350
$180
$530
Comp Problem ….pdf
FINANCIAL REP….xls