Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem P5.36APGA
P5-36A Preparing a multi-step income statement, journalizing closing entries, and preparing a post-closing trail balance
Learning Objective 4, 5
- Operating Income $67,900
The adjusted
RACHAEL REY MUSIC COMPANY Adjusted Trial Balance December 31, 2018 |
||
Balance | ||
Account Title | Debit | Credit |
Cash | $ 4,000 | |
38,400 | ||
Merchandise Inventory | 18,100 | |
Office Supplies | 300 | |
Furniture | 39,900 | |
Accumulated Depreciation-Furniture | $ 8,200 | |
Accounts Payable | 13,800 | |
Salaries Payable | 850 | |
Unearned Revenue | 7,500 | |
Notes Payable, long-term | 17,000 | |
Rey, Capital | 27,350 | |
Rey, Withdrawals | 40,000 | |
Sales Revenue | 184,000 | |
Cost of Goods Sold | 85,500 | |
Selling Expense | 18,600 | |
Administrative Expense | 12,000 | |
Interest Expense | 1,900 | |
Total | $258,700 | $258,700 |
Requirements
1. Prepare Rachael Rey’s multi-step income statement for the year ended June 30, 2018.
2. Journalize Rachael Rey’s closing entries.
3. Prepare a post-closing trial balance as of June 30, 2018.
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During the current year, merchandise is sold for $135,100 cash and $501,500 on account. The cost of the goods sold is $458,400. What is the amount of the gross profit?
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(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Andrews and Johnson, a lawfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $100,000■ Allowance for Uncollectible Accounts, $14,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $697,000, all on accountb. Collections on account, $714,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $11,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Andrews and Johnson will report accounts receivable on its balance sheet atDecember 31, 2018.
Chapter 5 Solutions
Horngren's Accounting (12th Edition)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - 2. The two main inventory accounting system are...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC manufacturing purchased inventory for $5,300...Ch. 5 - Austin sold inventory for $2/10, n/30. Cost of...Ch. 5 - Prob. 6QCCh. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Assume Juniper Natural Dyes made Net Sales Revenue...Ch. 5 - Prob. 10AQC
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