80.2K

Verified Solution

Link Copied!

On November 1, Randy Conway opened a uniform supplying company that purchases uniforms and resells them to businesses in the Vancouver area. Randy's accountant set up his Chart of Accounts as follows: Account Name Cash Accounts Receivable Office Supplies Prepaid Insurance Prepaid Rent Merchandise Inventory Sewing Equipment Accumulated Depreciation, Sewing Equipment Accounts Payable Wages Payable Unearned Revenue Randy Conway, Capital Randy Conway, Withdrawals Sales Sales Discounts Sales Returns and Allowances Cost of Goods Sold Depreciation Expense, Sewing Equipment (G&A) Wages Expense Insurance Expense Rent Expense Office Supplies Expense Ivertising Expense leage Expense (Sales) pairs Expense (G&A) a a Randy's first two months of transactions can be found here: November Randy invested S130,000 into his business. November 1Purchased a new sewing machine that will be scrapped in three years for $2,7000 November 1 Prepaid rent in a downtown commercial building for four months for s2.160. No sales work will be done out of the space. November 1 Paid cash for two year's premium on liability insurance for $2400 November 3 Booked a conference in March, a deposit will be due in February November 4 Hired Conor Reid for $120 a day to assist in SALES. November Purchased 320 uniforms for S22 each to resell as inventory. November Esthers Inn purchased 20 uniforms at S40 each on credit November 13 Paid Conor Reid for 3 days November 15 Purchased 150 uniforms for $24 each to resell as inventory. November 20 Sold 110 uniforms to Chicken Buddies for S40 a unit at a cost of $22 each. November 21 Randy made a withdrawal from the business for the amount of S3770 November 24 Paid Conor Reid for 6 days November 26 Purchased office supplies on credit from Onward Supplies for $1780 November 27 The equipment had repairs made paid in cash for S1030 November 29 Bought office supplies from Onward Supplies on credit for $960 November 30 Randy made a withdrawal for personal use for the amount of S4670 December 1 Sold 80 uniforms to Gregan Industries for S40 a unit at a cost of S22 each. December 3 The sewing machine had urgent repairs paid in cash for $1880 December Paid Conor Reid for 5 days December 8 Hired the radio to air ads today for $2420 December 12 Ordered office supplies from Onward Supplies on credit for $1430 December 13 The building required repairs paid in cash for S1080 December 14 Purchased 230 uniforms for S19 each to resell as inventory December 14 Randy withdrew cash for personal use in the amount of S2850 December 18 Mileage expense was paid in cash for $490 December 19 Esthers Inn paid their outstanding bill. December 19 A return was made of S400 worth of inventory and cash was paid to the customer, the returned inventory was trashed. December 20A deposit was made on an embroidery job of $4,000 December 22 Sold 130 uniforms to Austin Hotels for S40 a unit at a cost of S19 each. cember 28 Sold 200 uniforms to CMR Manufacturing for $40 a unit at a cost of $24 each. cember 31 At the end of the year, 9 days of pay was owed to Conor Reid. cember 31 At the end of the year, there was 800 of office supplies remaining. cember 31 There are three additional adjusting entries required at the end of the year. December 14 Purchased 230 uniforms for $19 each to resell as inventory. December 14 Randy withdrew cash for personal use in the amount of $2850 December 18 Mileage expense was paid in cash for $490 December 19 Esthers Inn paid their outstanding bill. December 19 A return was made of $400 worth of inventory and cash was paid to the customer, the returned inventory was trashed. December 20 A deposit was made on an embroidery job of $4,000 December 22 Sold 130 uniforms to Austin Hotels for $40 a unit at a cost of $19 each. December 28 Sold 200 uniforms to CMR Manufacturing for $40 a unit at a cost of $24 each. December 31 At the end of the year, 9 days of pay was owed to Conor Reid. December 31 At the end of the year, there was 800 of office supplies remaining. December 31 There are three additional adjusting entries required at the end of the year. Required: 1) Journalize the transactions (25 marks 15 for regular entries, 10 for adjustments marks include using general ledger) 2) Prepare a Multi-Step Income Statement and a Single-Step Income Statement (15 marks 12 for MS, 3 for SS) 3) Close the Temporary Accounts (10 marks) 4) Prepare a Classified Balance Sheet (15 marks) - Date Account Titles and Explanation PR Debit Credit

Answer & Explanation Solved by verified expert

See Answer