Beruflich Dokumente
Kultur Dokumente
July 17 Cash...................................................................
8,575
Sales Discounts
(2%) ....................................... 175
Accounts Receivable—Morris ................. 8,750
(Collected receivable within discount period). 10500-1750
=8,750
Problem AP5-2
Revenue
Sales revenue ($5,500 + $4,000) $ 9,500
Sales discount (150)
Sales return (400)
Net sales $ 8,950
Cost of sales
Purchases $ 8,500
Freight in 150
Purchase return (300)
Discount received (324)
$ 8,026
Ending inventories (2,900)
$ (5,126)
Gross profit $ 3,824
Problem AP5-6
1. Journal entries
Date Accounts and Explanation Debit
Credit
May 1 Merchandise inventories 2,500
A.Payable – Alladin Company
2,500
Merchandise inventories 200
Cash
200
Expenses
Advertising expense $
(390)
Freight out
(270)
Utility expense
(500)
Salary expense
(7,000)
Miscellaneous expenses
(5,000)
Depreciation expense – Store equipment
(700)
Depreciation expense – Delivery van
(400)
Store supplies expense
(3,500)
Insurance expense
(250)
Profit for the period $
5,430
5. Balance sheet
FAIRY TALES COMPANY
BALANCE SHEET
AS AT 30 MAY 2007
ASSETS
Non Current Assets
Store equipment $ 85,000
Accumulated depreciation (18,700)
$
66,300
Delivery van 48,000
Accumulated depreciation (12,400)
35,
600
Total non current assets
$101,900
Current Assets
Cash $
20,540
Accounts receivable
50,200
Merchandise inventories
15,140
Store supplies
2,000
Prepaid insurance
1,750
Total current assets $
89,630
Total Assets
$191,530
Current Liabilities
Notes payable $
22,900
Accounts payable
53,000
Utility payable
200
Total current liabilities $
76,100
6. Closing entries