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Accounting 211
Tuesday, January 26th, 1999
Announcements: none
Lecture notes:
Page 171, Problem B1:
adjusted--after adjusted entries
trial balance--list of accounts by debit / credit balance
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Closing Entries Prepared___________________________ |
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_________________General Journal_________________ |
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Date___ |
Description______________ |
Debit_ |
Credit_ |
|
19X3 |
Closing entries |
|
|
|
June 30 |
Campsite Rentals |
88,200 |
|
|
|
Income Summary |
|
88,200 |
|
(To close Revenue accounts) |
|
|
|
30 |
Income Summary |
46,754 |
|
|
|
Wages Expense |
|
23,850 |
|
|
Insurance Expense |
|
3,784 |
|
|
Utilities Expense |
|
1,800 |
|
|
Supplies Expense |
|
1,320 |
|
|
Depreciation Expense, Building |
|
6,000 |
|
|
Income Tax Expense |
|
10,000 |
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(To close Expense accounts) |
|
|
|
30 |
Income Summary |
41,446 |
|
|
|
Retained Earnings |
|
41,446 |
|
(To close Income Summary Account) |
|
|
|
30 |
Retained Earnings |
36,000 |
|
|
|
Dividends |
|
36,000 |
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(To close Dividends account) |
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Chapter 3 Homework:
Page 119, SE 1:
Answers:
Page 119, SE 2:
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PREPAID INSURANCE |
|
230
570 |
X = Insurance Expense |
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End Balance = 350 |
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X = 800 - 350 = 450
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Insurance Expense |
450 |
|
|
Prepaid Insurance |
|
450 |
Page 119, SE 3:
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SUPPLIES |
|
190
490 |
X = Supplies Expense |
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End Balance = 220 |
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X = 190 + 490 - 220 = 460
Page 120, SE 5:
*situation of an accrual
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June 30 |
Wage Expense |
115 |
|
|
|
Wages Payable |
|
115 |
Page 120, SE 6:
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Cash |
550 |
|
|
Unearned Revenue |
|
550 |
|
|
|
|
|
Unearned Revenue |
380 |
|
|
Revenue |
|
380 |
Page 124, Problem A1:
A.
|
SUPPLIES |
|
4,248
9,052 |
X = Supplies Expense |
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End Balance = 2,794 |
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X = 13,400 - 2,794 = 10,606
B.
|
Insurance Expense |
10,768 |
|
|
Prepaid Insurance |
|
10,768 |
Skip C
D.
|
Unearned Revenue |
8,400 |
|
|
Revenue |
|
8,400 |
E.
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Accounts Receivable |
8,000 |
|
|
Revenue |
|
8,000 |
F.
|
Interest Expense |
30,000 |
|
|
Interest Payable |
|
30,000 |
Skip G
- NO JOURNAL ENTRY IS NECESSARY
Chapter 5--Accounting for Retailers
(top part of income statements)
Net Sales
- Cost of Goods Sold
= Gross Margin (Profit)
*see pages 184 & 185
Net Sales:
Gross Sales (total of all sales)
- Sales Returned + Allowances (discounts, ex: damage)
- Sales Discounts (reductions in sales price as result of payment)
= Net Sales
Cost of Goods Sold:
Beginning Inventory (as of beginning of fiscal period)
+ Net Purchases (cost of products sold)
+ Freight In (charge for shipping)
= Cost of Goods Available for Sale
- Ending Inventory
= Cost of Goods Sold
*Net Purchases = Gross Purchases - Returns & Allowance - Discounts
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