PS_07_Solution_(APSCW_-_F2009)

PS_07_Solution_(APSCW_-_F2009) - FINANCIALACCOUNTING...

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BUSI W3013 Solution to Problem Set 07 | Page 1 F INANCIAL A CCOUNTING BUSI W3013 | F ALL 2009 S OLUTION TO P ROBLEM S ET 07 PROFESSOR ANDREW SCHMIDT I. M&H, Inc. General Journal: 1999 Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] 1 RM Inventory AP +1,000 +1,000 2 WIP Inventory RM Inventory +500 –500 3 WIP Inventory Salaries Exp Cash Salaries Pybl +100 –200 +50 –150 4 FG Inventory WIP Inventory +600 –600 5 Cash AR Sales +600 +300 +900 COGS FG Inventory –500 –500 Adjusting Entry Calculations: Depreciation Expense Factory PP&E [1,000 – 200] ÷ 5 = 160 Other PP&E [200 – 20] ÷ 10 = 18
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BUSI W3013 Solution to Problem Set 07 | Page 2 Adjusting Entries: Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] A1 WIP Inventory AD – PP&E +160 –160 A2 Depr Exp AD – PP&E –18 –18 Closing Entries: Assets = Liabilities + CC + RE D+[C–] D–[C+] D–[C+] D–[C+] C1 Sales COGS Salaries Exp Depr Exp Inc Sum –900 +500 +150 +18 +232 C2 Inc Sum RE –232 +232
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BUSI W3013 Solution to Problem Set 07 | Page 3 General Ledger Cash AR RM Inventory BB 500 3. 200 5. 300 BB 250 5. 600 1. 1,000 2. 500 EB 900 EB 300 EB 750 WIP Inventory FG Inventory PP&E BB 200 4. 600 BB 300 5. 500 BB 1,200 2. 500 4. 600 3. 100 A1. 160 EB 360 EB 400 EB 1,200 AD – PP&E AP Salaries Payable BB 400 1. 1,000 3. 50 A1. 160 A2. 18 EB 578 EB 1,000 EB 50 Common Stock Retained Earnings Sales BB 1,000 BB 1,050 C1. 900 5. 900 C2. 232 EB 1,000 EB 1,282 COGS Salaries Exp Depreciation Exp 5. 500 C1. 500 3. 150 C1. 150 A2. 18 C1. 18 Income Summary C2. 232 C1. 232
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BUSI W3013 Solution to Problem Set 07 | Page 4 M&H, Inc. Income Statement For the Year ended on 12/31/99 Sales 900 Cost of Goods sold (500) Gross margin 400 SG&A expenses: Salaries expense Depreciation expense 150 18 (168) Net income 232 M&H, Inc. Statement of Shareholders’ Equity For the Year Ended on 12/31/99 Common Stock Retained Earnings Total Equity Balance: 01/01/99 1,000 1,050 2,050 Net Income 232 232 Balance: 12/31/99 1,000 1,282 2,282 M&H, Inc. Balance Sheet
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PS_07_Solution_(APSCW_-_F2009) - FINANCIALACCOUNTING...

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