Bates uses Periodic Inventory system . following transactions. a. bates invested additional $70000 cash in the business. b. Received $125,000 in advance from the state of iowa for service which is be performed at a later. c. Received merchandise (will be resold to customers ) purchases on account for $19,000.the terms were 2/10: n/30 ,FOB origination and the invoice included a $100 freight charge .Invoice is for $19,100. d. paid a six month insurance premium of $1800. e. Purchased a $45000 short term certificate of deposit from Home Saving Bank . The CD is considered a short term investment . f. Performed services for dane country and immediately received $50,000. g. Made a $1,050 mortgage payment was for interest nthe remainder was applied toward the loan principal. h. Returned a return of $2500 of the merchandise received in"C" above. i. sold merchandise on account for $12,000 terms were 2/10, n/30 " FOB origination j. Received a return of $3000 of the merchandise sold in "I" above. k. Gill Bates , the owner , withdrew $10,000 for personal use. L. Purchased $400 of office supplies by paying cash. M. Received payment for the merchandises sold in "I" this payment properly took the discount and returns into account. N. paid the invoice related to "C" this payment properly took the discount and returns into account. O. Paid $7775 in wages. p. Signed a contract with city of Chicago to perform service .Chicago will pay Bates when all services are completed early in 2011. …below adjustment entries R) Expired insurance for the year ( expired insurance is only booked at year -end) is $900. S) Office supplies on hand at year - end are $200. T) Accrued Wages at year end are $3,200. u) Accrued interest revenue on the home saving bank CD referred to in "E" at year end is $300. V)By year end ,performed $25000 pf services referred to in "P" for city of chicago. W) By year end ,performed 1/2 (half) of the project referred to in "B". x) Depreciation expenses on the equipment for the year is $4,400. Y) Depreciation expenses on the building for the year is 4000. Z)Ending merchandise inventory $28,500. Required : 1) unadjusted(A-P) Journal Entries , GL Accounts 2) (R-Z ) Journal entries ,GL Worksheet. 3) Adjusted trial balance should be $622,350 , Income statement (net income $36,875 .) and balance sheet ?

Bates uses Periodic Inventory system . following transactions. a. bates invested additional $70000 cash in the business. b. Received $125,000 in advance from the state of iowa for service which is be performed at a later. c. Received merchandise (will be resold to customers ) purchases on account for $19,000.the terms were 2/10: n/30 ,FOB origination and the invoice included a $100 freight charge .Invoice is for $19,100. d. paid a six month insurance premium of $1800. e. Purchased a $45000 short term certificate of deposit from Home Saving Bank . The CD is considered a short term investment . f. Performed services for dane country and immediately received $50,000. g. Made a $1,050 mortgage payment was for interest nthe remainder was applied toward the loan principal. h. Returned a return of $2500 of the merchandise received in"C" above. i. sold merchandise on account for $12,000 terms were 2/10, n/30 " FOB origination j. Received a return of $3000 of the merchandise sold in "I" above. k. Gill Bates , the owner , withdrew $10,000 for personal use. L. Purchased $400 of office supplies by paying cash. M. Received payment for the merchandises sold in "I" this payment properly took the discount and returns into account. N. paid the invoice related to "C" this payment properly took the discount and returns into account. O. Paid $7775 in wages. p. Signed a contract with city of Chicago to perform service .Chicago will pay Bates when all services are completed early in 2011. …below adjustment entries R) Expired insurance for the year ( expired insurance is only booked at year -end) is $900. S) Office supplies on hand at year - end are $200. T) Accrued Wages at year end are $3,200. u) Accrued interest revenue on the home saving bank CD referred to in "E" at year end is $300. V)By year end ,performed $25000 pf services referred to in "P" for city of chicago. W) By year end ,performed 1/2 (half) of the project referred to in "B". x) Depreciation expenses on the equipment for the year is $4,400. Y) Depreciation expenses on the building for the year is 4000. Z)Ending merchandise inventory $28,500. Required : 1) unadjusted(A-P) Journal Entries , GL Accounts 2) (R-Z ) Journal entries ,GL Worksheet. 3) Adjusted trial balance should be $622,350 , Income statement (net income $36,875 .) and balance sheet ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bates uses Periodic Inventory system . following transactions.

a. bates invested additional $70000 cash in the business.

b. Received $125,000 in advance from the state of iowa for service which is be performed at a later.

c. Received merchandise (will be resold to customers ) purchases on account for $19,000.the terms were 2/10: n/30 ,FOB origination and the invoice included a $100 freight charge .Invoice is for $19,100.

d. paid a six month insurance premium of $1800.

e. Purchased a $45000 short term certificate of deposit from Home Saving Bank . The CD is considered a short term investment .

f. Performed services for dane country and immediately received $50,000.

g. Made a $1,050 mortgage payment was for interest nthe remainder was applied toward the loan principal.

h. Returned a return of $2500 of the merchandise received in"C" above.

i. sold merchandise on account for $12,000 terms were 2/10, n/30 " FOB origination

j. Received a return of $3000 of the merchandise sold in "I" above.

k. Gill Bates , the owner , withdrew $10,000 for personal use.

L. Purchased $400 of office supplies by paying cash.

M. Received payment for the merchandises sold in "I" this payment properly took the discount and returns into account.

N. paid the invoice related to "C" this payment properly took the discount and returns into account.

O. Paid $7775 in wages.

p. Signed a contract with city of Chicago to perform service .Chicago will pay Bates when all services are completed early in 2011. …below adjustment entries

R) Expired insurance for the year ( expired insurance is only booked at year -end) is $900.

S) Office supplies on hand at year - end are $200.

T) Accrued Wages at year end are $3,200.

u) Accrued interest revenue on the home saving bank CD referred to in "E" at year end is $300.

V)By year end ,performed $25000 pf services referred to in "P" for city of chicago.

W) By year end ,performed 1/2 (half) of the project referred to in "B".

x) Depreciation expenses on the equipment for the year is $4,400.

Y) Depreciation expenses on the building for the year is 4000.

Z)Ending merchandise inventory $28,500.

Required :

1) unadjusted(A-P) Journal Entries , GL Accounts

2) (R-Z ) Journal entries ,GL Worksheet.

3) Adjusted trial balance should be $622,350 , Income statement (net income $36,875 .) and balance sheet ?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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