ch11 - Exercise Set C - Chapter 11 PROBLEMS: SET C P11-1C...

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PROBLEMS: SET C P11-1C On January 1, 2010, the ledger of Painless Software Company contains the following liability accounts. Accounts Payable $42,500 Sales Taxes Payable 5,800 Unearned Service Revenue 15,000 During January the following selected transactions occurred. Jan. 1 Borrowed $30,000 in cash from Amsterdam Bank on a 4-month, 8%, $30,000 note. 5 Sold merchandise for cash totaling $10,400, which includes 4% sales taxes. 12 Provided services for customers who had made advance payments of $9,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2009, $5,800. 20 Sold 900 units of a new product on credit at $52 per unit, plus 4% sales tax. This new product is subject to a 1-year warranty. 25 Sold merchandise for cash totaling $18,720, which includes 4% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 5% of sales of the new product. (c) Prepare the current liabilities section of the balance sheet at January 31, 2010. Assume no change in accounts payable. P11-2C The following are selected transactions of Glazer Company. Glazer prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Alicea Company, $18,000, terms 2/10, n/30. Feb. 1 Issued a 10%, 2-month, $18,000 note to Alicea in payment of account. Mar. 31 Accrued interest for 2 months on Alicea note. Apr.
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This note was uploaded on 09/19/2010 for the course ACCT 220 taught by Professor Ullmann during the Fall '10 term at University of Nebraska Kearney.

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ch11 - Exercise Set C - Chapter 11 PROBLEMS: SET C P11-1C...

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