Principles of Accounting Comprehensive Problem Lopez Nurseries No...

  1. Home
  2. Homework Library
  3. Business
  4. Accounting
  5. Principles of Accounting Comprehensive Problem Lopez Nurseries No...


Transcribed TextTranscribed Text

Principles of Accounting Comprehensive Problem Lopez Nurseries November 2016 Trial Balance DR CR Accounts Receivable 355,000 Allowance for Bad Debts 25,000 Accumulated Depreciation- Building 79,000 Accumulated Depreciation- Equipment 45,600 Building 462,000 Cash 160,000 Equipment 166,730 Goodwill 24,000 Patents 50,000 Merchandise Inventory 225,000 Land 251,000 Long-Term Investments - Prepaid Insurance 5,800 Office Supplies 6,300 Accounts Payable 222,900 Notes Payable - Unearned Revenue 25,000 Interest Payable - Common Stock ($5Par) 840,000 Paid-in Capital in Excess of Par Value 40,000 Dividends Retained Earnings 295,730 Sales 900,870 Sales Returns & Allowances 8,000 Sales Discounts Amortization Expense 200 Bad Debt Expense - Cost of Goods Sold 595,000 Depreciation Expense- Building 10,000 Depreciation Expense- Euipment 5,600 Interest Expense 6,000 Insurance Expense 1,670 Entertainment Expense Postage Expense Miscellaneous Expense Gain/Loss on Disposal of Equipment - Rent Expense 63,000 Office Supplies Expense Utillity Expense 11,000 Wages & Salaries Expense 67,800 Totals $ 2,474,100 $ 2,474,100 Normal Journal Entries Date Transaction Dec 1 Paid rent expense of $5,000 for December. Dec 1 Took out long term bank note for $100,000 with an interest rate of 12%. Dec 3 Purchased $400,000 of inventory terms 2/10 net 30 Dec 8 Sold equipment with original cost of $40,000 and accumulated depreciation of $15,000 for $12,000. Dec 9 Purchased building for $20,000 for cash. Dec 10 Sold inventory on account for $400,000 2/10 net 30 with a cost of $200,000 Dec 11 Paid for inventory purchased December 3. Dec 12 Paid postage $350, Miscellaneous $400, Entertainment $175 in cash. Dec 18 Wrote off uncollectible accounts $15,000. Dec 20 Received payment in full for sale on December 10. Dec 31 Declared and paid cash dividend of $0.50 per share. Dec 31 Paid wages and salaries of $10,000. Adjusting Entries: 1. Record interest due on the note payable received on December 1. 2. Depreciation expense for the month is $3,000 for building and $1,800 for equipment. 3. Accrue sales for goods sold for $25,000 with a cost of $10,000. 4. Insurance expense for the month of December is $400. 5. Unearned revenue of $12,000 with a cost of $8,000 was earned during the month. 6. Ending office supplies inventory $4,200. 7. Allowance for bad debts is 3 percent of net sales rounded to the nearest dollar. Instructions: Complete all transactions in the Excel template provided in E-college Starting with the balances from page 1 complete the following steps in excel the template provided. 1. Journalize and post normal monthly transactions to T accounts. 2. Prepare unadjusted trial balance. 3. Journalize and post adjusting entries to T accounts. 4. Prepare adjusted trial balance. 5. Prepare multi-step income statement, statement of retained earnings, and classified balance sheet. 6. Journalize and post closing entries to T accounts. 7. Prepare post closing trial balance. A couple of helpful hints: 1. Use the template provided. 2. Be certain to include opening balances from November in your ledger accounts. 3. When making adjustment # 7 include ALL sales and sales returns and allowance including those from adjusting entries. Some check figures for you: Net Income $266,719, Net Sales $1,321,870, Total Assets Balance $1,695,349, Cash Balance $152,075. 4. Remember to not give up. Start early. The project takes approximately 20 hours to complete. If you cannot come to my numbers, it is just as important that you finish and balance. There will be a slight deduction for not balancing.

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

    By purchasing this solution you'll be able to access the following files:

    for this solution

    PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

    Find A Tutor

    View available Accounting Tutors

    Get College Homework Help.

    Are you sure you don't want to upload any files?

    Fast tutor response requires as much info as possible.

    Upload a file
    Continue without uploading

    We couldn't find that subject.
    Please select the best match from the list below.

    We'll send you an email right away. If it's not in your inbox, check your spam folder.

    • 1
    • 2
    • 3
    Live Chats