Acc280 Financial Accounting: Comprehensive Problem: Appendix G - Julie Molony, Julie’s Maids Cleaning Service Inc

Comprehensive Problem

Appendix G

Julie Molony opened Julie’s Maids Cleaning Service Inc. on July 1, 2008. During July, the company completed the following transactions. July 1 Issued $14,000 of common stock for $14,000 cash.

1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account.

3 Purchased cleaning supplies for $800 on account.

5 Paid $1,800 on a one-year insurance policy, effective July 1.

12 Billed customers $3,800 for cleaning services.

18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies.

20 Paid $1,600 for employee salaries.

21 Collected $1,400 from customers billed on July 12.

25 Billed customers $1,500 for cleaning services.

31 Paid gas and oil for the month on the truck, $400.

31 Paid a $600 cash dividend.

The chart of accounts for Julie’s Maids Cleaning Service contains the following accounts:No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable,No. 311 Common Stock,No. 320 Retained Earnings,No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense.

Instructions

(a) Journalize and post the July transactions. Use page J1 for the journal.

(b) Prepare a trial balance at July 31 on a worksheet.

(c) Enter the following adjustments on the worksheet, and complete the worksheet.

(1) Earned but unbilled fees at July 31 were $1,300.

(2) Depreciation on equipment for the month was $200.

(3) One-twelfth of the insurance expired.

(4) An inventory count shows $100 of cleaning supplies on hand at July 31.

(5) Accrued but unpaid employee salaries were $500.

(d) Prepare the income statement and a retained earnings statement for July, and a classified balance sheet at July 31, 2008.

(e) Journalize and post the adjusting entries. Use page J2 for the journal.

(f ) Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal.

(g) Prepare a post-closing trial balance at July 31.

BUY:  Appendix G - Julie's Maid Cleaning Services

Acc225 Fundamental Accounting Principles: Comprehensive Problem 11 (CP11) Bug-Off Exterminators

Comprehensive Problem 11 (CP11)

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. The following six-column table...

BUG-OFF EXTERMINATORS

December 31, 2011

Unadjusted Trial Balance

Cash               18,000

Accounts receivable                 5,000

Allowance for doubtful accounts                        928

Merchandise inventory               12,700

Trucks               40,000

Accum. depreciation-Trucks                          -

Equipment               55,000

Accum. depreciation-Equipment                   14,400

Accounts payable                     4,800

Estimated warranty liability                     1,400

Unearned services revenue                          -

Interest payable                          -

Long-term notes payable                   15,000

D. Buggs, Capital                   62,600

D. Buggs, Withdrawals               10,000

Extermination services revenue                   70,000

Interest revenue                        872

Sales (of merchandise)                   80,000

Cost of goods sold               57,991

Depreciation expense-Trucks                      -

Depreciation expense-Equipment                      -

Wages expense               32,500

Interest expense                      -

Rent expense               10,000

Bad debts expense                      -

Miscellaneous expense                 1,338

Repairs expense                    671

Utilities expense                 6,800

Warranty expense                      -

Totals             250,000             250,000

The following information in a through h applies to the company at the end of the current year.

a.  The bank reconciliation as of December 31, 2011, includes the following facts.

Cash balance per bank               16,100

Cash balance per books               18,000

Outstanding checks                 1,800

Deposit in transit                 1,450

Interest earned (on bank account)                     52

Bank service charges (miscellaneous expense)                     15

Reported on the bank statement is a canceled check that the company failed to record.

b.  An examination of customers' accounts shows that accounts totaling $779 should be written off as uncollectible. Using an aging of receivables....

c.  A truck is purchased and placed in service on January 1, 2011. Its cost is being depreciated....

Original cost               40,000

Expected salvage value                 5,000

Useful life (years)                       5

d.  Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2009.

e.  On August 1, 2011, the company is paid $7,680 cash in advance to provide monthly service for an apartment complex for one year.

f.  The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination...

g.  The $15,000 long-term note is an 8%, 5-year, interest-bearing note with interest payable annually on December 31...

h.  The ending inventory of merchandise is counted and determined to have a cost of $12,700.

Required:

1.  Use the preceding information to determine amounts for the following items.

a.  Correct (reconciled) ending balance of Cash, and the amount of the omitted check.

b.  Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.

c.  Depreciation expense for the truck used during year 2011.

d.  Depreciation expense for the two items of equipment used during year 2011.

e.  The adjusted 2011 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts.

f.  The adjusted 2011 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability.

g.  The adjusted 2011 ending balances of the accounts for Interest Expense and Interest Payable.

2.  Use the results of part 1 to complete the six-column table

3.  Prepare journal entries to record the adjustments entered on the six-column table.

4.1  Prepare a single-step income statement for year 2011.

4.2  Prepare a Statement of owner's equity for year 2011.

4.3  Prepare a Classified balance sheet as at 2011.

Tutorial:  CP11 - Bug-Off Exterminators

Comprehensive Problem 2: Ocean Atlantic Co. (Complete Accounting Cycle)

(In Excel 2007 format)
Comprehensive Problem 2 (CP2)

Ocean Atlantic Co. is a merchandising business. the account balances for Ocean Atlantic co. as of July 1, 2012 (unless otherwise indicated), are as follows:

110 Cash         63,600

112 Accounts Receivable       153,900

115 Merchandise Inventory       602,400

116 Prepaid Insurance         16,800

117 Store Supplies         11,400

123 Store Equipment       469,500

124 Accumulated Depreciation-Store Equipment         56,700

210 Accounts Payable         96,600

211 Salaries Payable                -

310 Capital stock       75,000

311 Retained earnings, Aug 1 2011        480,300

312 Dividends        135,000

313 Income summary

410 Sales    3,221,100

411 Sales Returns and Allowances         92,700

412 Sales Discounts         59,400

510 Cost of Merchandise Sold    1,623,000

520 Sales Salaries Expense       334,800

521 Advertising Expense         81,000

522 Depreciation Expense                -

523 Store Supplies Expense                -

529 Miscellaneous Selling Expense         12,600

530 Office Salaries Expense       182,100

531 Rent Expense         83,700

532 Insurance Expense                -

539 Miscellaneous Administrative Expense           7,800

During July, the last month of the fiscal year, the following transactions were completed:

July 1, Paid rent for July, $4000.

3, Purchased merchandise on account from Lingard Co., Terms 2/10,n/30,FOB shipping point, $25,000.

4, Paid freight on purchase of July 3, $1000.

6, Sold merchandise on account to Holt Co., terms 2/10,n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000.

7, Received $18000 cash from Flat Co. on account, no discount.

10, sold merchandise for cash $90,000. The cost of the merchandise sold was $50,000.

13, Paid for merchandise purchased on July 3, less discount.

14, Received merchandise returned on sale of July 6, $7000. The cost of the merchandise returned was $4500.

15, Paid advertising expense for last half of July, $9000

16, received cash from sale of July 6, less return of July 14 and discount.

19, purchased merchandise for cash, $22000.

19, Paid $23,100 to Corino Co. on account, no discount

Record the following transactions on page 21 of the journal

20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. The cost of the merchandise sold was $25000.

21, for the convenience of the customer, paid freight on sale of July 20, $1100.

21, received $17600 cash from Owen co. on account, no discount.

21, purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB Destination, $32000.

24, Returned $5000 of damaged merchandise purchased on July21, receiving credit from the seller.

26, Refunded cash on sales made for cash, $12000. The cost of the merchandise returned was $7200.

28, paid sales salaries of $22800 and office salaries of $15200.

29, purchased store supplies for cash, $2400.

30, Sold merchandise on account to Dix co., terms 2/10, n/30, FOB shipping point, $18,750. The cost of the merchandise sold was $11,250.

30, received cash from sale of July 20, less discount, plus freight paid on July 21.

31, Paid for purchase of July 21, less return of July 24 and discount.

Instructions

1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.

2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.

3. Prepare and unadjusted trial balance.

4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

a) Merchandise inventory on July 31 $ 565000

b) Insurance expired during the year $ 13400

c) Store supplies on hand on July 31 $3900

d) Depreciation for the current year $11500

e) Accrued salaries on July 31: Sale salaries $3200 Office salaries $1300 ($4500)

5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.

6. Journalize and post the adjusting entries.  Record the adjusting entries on page 22 of the journal.

7. Prepare an adjusted trial balance

8. Prepare an income statement, a retained earnings statement, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries on page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.

10. Prepare a post-closing trial balance.

Tutorial:  CP2 - Ocean Atlantic Co.

Financial and Managerial: Comprehensive Problem 2: South Coast Boards Co (Complete Accounting Cycle)

(In MS Excel 2007 format)
Comprehensive Problem 2  (CP2) 
South Coast Boards Co. is a merchandising business. the account balances for South Coast Boards co. as of July 1, 2010 (unless otherwise indicated), are as follows:

110 Cash         63,600

112 Accounts Receivable       153,900

115 Merchandise Inventory       602,400

116 Prepaid Insurance         16,800

117 Store Supplies         11,400

123 Store Equipment       469,500

124 Accumulated Depreciation-Store Equipment         56,700

210 Accounts Payable         96,600

211 Salaries Payable                -

310 Capital stock       100,000

311 Retained earnings, Aug 1 2009        455,300

312 Dividends        135,000

313 Income summary

410 Sales    3,221,100

411 Sales Returns and Allowances         92,700

412 Sales Discounts         59,400

510 Cost of Merchandise Sold    1,623,000

520 Sales Salaries Expense       334,800

521 Advertising Expense         81,000

522 Depreciation Expense                -

523 Store Supplies Expense                -

529 Miscellaneous Selling Expense         12,600

530 Office Salaries Expense       182,100

531 Rent Expense         83,700

532 Insurance Expense                -

539 Miscellaneous Administrative Expense           7,800

During July, the last month of the fiscal year, the following transactions were completed:

July 1, Paid rent for July, $5000.

3, Purchased merchandise on account from Belmont Co., Terms 2/10,n/30,POB shipping point, $40000.

4, Paid freight on purchase of July 3, $600.

6, Sold merchandise on account to Modesto Co., terms 2/10,n/30, FOB shipping point, $25000. The cost of the merchandise sold was $15000.

7, Received $26500 cash from Yuba Co. on account, no discount.

10, sold merchandise for cash $80000. The cost of the merchandise sold was $50000. 

13, Paid for merchandise purchased on July 3, less discount.

14, Received merchandise returned on sale of July 6, $6000. The cost of the merchandise returned was $4500.

15, Paid advertising expense for last half of July, $7500

16, received cash from sale of July 6, less return of July 14 and discount.

19, purchased merchandise for cash, $36000.

19, Paid $18000 to Blakke Co. on account, no discount

20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. the cost of the merchandise sold was $25000.

21, for the convenience of the customer, paid freight on sale of July 20, $1100.

21, received $17600 cash from Owen co. on account, no discount.

21, purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB Destination, $20000.

24, Returned $2000 of damaged merchandise purchased on July

21, receiving credit from the seller.

26, Refunded cash on sales made for cash, $3000. The cost of the merchandise returned was $1800.

28, paid sales salaries of $22800 and office salaries of $15200.

29, purchased store supplies for cash, $2400.

30, Sold merchandise on account to Whitetail co., terms 2/10, n/30, FOB shipping point, $18750. The cost of the merchandise sold was $11250.

30, received cash from sale of July 20, less discount, plus freight paid on July 21.

31, Paid for purchase of July 21, less return of July 24 and discount.

Instructions

1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (?) in the posting reference column. Journalize the transactions for July.

2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are no required to update or post to the accounts receivable and accounts payable subsidiary ledgers.

3. Prepare and unadjusted trial balance.

4. At the end of July, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

a) Merchandise inventory on July 31 $ 589850

b) Insurance expired during the year $ 12500

c) Store supplies on hand on July 31 $4700

d) Depreciation for the current year $18800

e) Accrued salaries on July 31: Sale salaries $4400 Office salaries $2700 ($7100)

5. Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work Sheet), and complete the spreadsheet.

6. Journalize and post the adjusting entries.  Record the adjusting entries on page 22 of the journal.

7. Prepare an adjusted trial balance

8. Prepare an income statement, a retained earnings statement, and a balance sheet.

9. Prepare and post the closing entries. Record the closing entries on page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account.

10. Prepare a post-closing trial balance.

Tutorial:  CP2 - South Coast Boards Co.