Principles of Accounting Comprehensive Problem
November 2016 Trial Balance
Allowance for Bad Debts
Accumulated Depreciation- Building
Accumulated Depreciation- Equipment
Common Stock ($5Par)
Paid-in Capital in Excess of Par Value
Sales Returns & Allowances
Bad Debt Expense
Cost of Goods Sold
Depreciation Expense- Building
Depreciation Expense- Euipment
Gain/Loss on Disposal of Equipment
Office Supplies Expense
Wages & Salaries Expense
Normal Journal Entries
Paid rent expense of $5,000 for December.
Took out long term bank note for $100,000 with an interest rate of 12%.
Purchased $400,000 of inventory terms 2/10 net 30
Sold equipment with original cost of $40,000 and accumulated depreciation of $15,000 for
Purchased building for $20,000 for cash.
Sold inventory on account for $400,000 2/10 net 30 with a cost of $200,000
Paid for inventory purchased December 3.
Paid postage $350, Miscellaneous $400, Entertainment $175 in cash.
Wrote off uncollectible accounts $15,000.
Received payment in full for sale on December 10.
Declared and paid cash dividend of $0.50 per share.
Paid wages and salaries of $10,000.
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.
Be certain to include opening balances from November in your ledger accounts.
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.
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.
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.