| | 10. Prepare a post-closing trial balance. Accounts with zero balances can be left blank. | | * For guidance in completing the financial statements, be sure to read the instructions above each statement carefully. | | 110 | Cash | $ 83,600 | | 112 | Accounts receivable | 233,900 | | 115 | Inventory | 624,400 | | 116 | Estimated returns inventory | 28,000 | | 117 | Prepaid insurance | 16,800 | | 118 | Store supplies | 11,400 | | 123 | Store equipment | 569,500 | | 124 | Accumulated depreciation-store equipment | 56,700 | | 210 | Accounts payable | 96,600 | | 211 | Salaries payable | | | 212 | Customers refunds payable | 50,000 | | 310 | Common stock | 100,000 | | 311 | Retained earnings | 585,300 | | 312 | Dividends | 135,000 | | 313 | Income summary | | | 410 | Sales | 5,069,000 | | 510 | Cost of goods sold | 2,823,000 | | 520 | Sales salaries expense | 664,800 | | 521 | Advertising expense | 281,000 | | 522 | Depreciation expense | | | 523 | Store supplies expense | | | 529 | Miscellaneous selling expense | 12,600 | | 530 | Office salaries expense | 382,100 | | 531 | Rent expense | 83,700 | | 532 | Insurance expense | | | 539 | Miscellaneous administrative expense | 7,800 | During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles. | May | 1 | Paid rent for May, $5,000. | | | 3 | Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. | | | 4 | Paid freight on purchase of May 3, $600. | | | 6 | Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the goods sold was $41,000. | | | 7 | Received $22,300 cash from Halstad Co. on account. | | | 10 | Sold merchandise for cash, $54,000. The cost of the goods sold was $32,000. | | | 13 | Paid for merchandise purchased on May 3. | | | 15 | Paid advertising expense for last half of May, $11,000. | | | 16 | Received cash from sale of May 6. | | | 19 | Purchased merchandise for cash, $18,700. | | | 19 | Paid $33,450 to Buttons Co. on account. | | | 20 | Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000. | Record the following transactions on page 21 of the journal. Refer to the Chart of Accounts for exact wording of account titles. | May | 20 | Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the goods sold was $70,000. | | | 21 | For the convenience of Crescent Co., paid freight on sale of May 20, $2,300. | | | 21 | Received $42,900 cash from Gee Co. on account. | | | 21 | Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000. | | | 24 | Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. | | | 26 | Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800. | | | 28 | Paid sales salaries of $56,000 and office salaries of $29,000. | | | 29 | Purchased store supplies for cash, $2,400. | | | 30 | Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the goods sold was $47,000. | | | 30 | Received cash from sale of May 20 plus freight paid on May 21. | | | 31 | Paid for purchase of May 21, less return of May 24. | |
