Solution to QS and Excercises- P3-6A and Chapter 4

Solution to QS and Excercises- P3-6A and Chapter 4 -...

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Problem 3-6A (15 minutes) 1. B 6. C 11. E 16. C 2. Z 7. F 12. C 17. C 3. A 8. E 13. A 18. Z 4. A 9. A 14. C 19. A 5. E 10. G 15. A 20. E
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Exercise 4-9 (25 minutes) Adjusting entries Dec. 31 Sales Salaries Expense .................................... 1,700 Salaries Payable ........................................ 1,700 To record accrued salaries. Dec. 31 Selling Expenses .............................................. 3,000 Prepaid Selling Expenses ........................ 3,000 To record expired prepaid selling expenses. Dec. 31 Cost of Goods Sold .......................................... 1,550 Merchandise Inventory ............................. 1,550 To record inventory shrinkage ($30,000 - $28,450). Closing entries Dec. 31 Sales ............................................................... 529,000 Income Summary .................................... 529,000 To close temporary accounts with credit balances. Dec. 31 Income Summary ........................................... 444,750 Sales Returns and Allowances .............. 17,500 Sales Discounts ...................................... 5,000 Cost of Goods Sold ($212,000 + $1,550) ...... 213,550 Sales Salaries Exp. ($48,000 + $1,700) ......... 49,700 Utilities Expense ..................................... 15,000 Selling Expenses ($36,000 + $3,000) ............ 39,000 Administrative Expenses ....................... 105,000 To close temporary accounts with debit balances. Dec. 31 Income Summary ........................................... 84,250 Retained Earnings .................................. 84,250 To close Income Summary account. Dec. 31 Retained Earnings .......................................... 33,000 Dividends ................................................ 33,000 To close the Dividends account.
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Problem 4-4A (40 minutes) 1. Net sales Sales ................................................................................ $225,600 Less: Sales discounts .................................................. (2,250) Sales returns and allowances .......................... (12 ,000 ) Net sales ......................................................................... $211 ,350 2.
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