Mgmt 200 Spring 2010 Homework 2 Solution

Mgmt 200 Spring 2010 Homework 2 Solution - LAST NAME FIRST...

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LAST NAME: _____________ FIRST NAME______________PUID_________________ Please write your name in BLOCK letters and in the format: Last name, First name. Management 200 – Introductory Financial Accounting– Spring 2010 Krannert School of Management - Purdue University Homework 2 – due Wednesday, February 10, 2010 - SOLUTION IMPORTANT: This homework must be turned in on this sheet of pages (please staple). It is preferred that you print it out two-sided if at all possible. Assignments not completed on this form will not be graded. The grade for this assignment will be based on the correctness of a partial portion of the assignment – the full assignment will not be graded. Please print your name and PUID clearly and legibly in the spaces above. Carolina Corporation, a wine store, provides the following post-closing trial balance as at December 31, 2008. A trial balance is a list of accounts, typically in financial statement order, with their ending debit or credit balances in the next two columns to provide a check on the equality of debits and credits. Carolina Corporation Post-closing trial balance, December 31, 2008 Dr $ Cr $ Cash 1,875 Accounts receivable 19,360 Supplies inventory 436 Merchandise inventory 25,442 Prepaid rent 1,800 Land 62,400 Plant and equipment, at cost 122,800 Accumulated depreciation 36,840 Accounts payable 8,658 Wages payable 782 Interest payable 1,500 Income tax payable 650 Deferred revenue 3,660 Note payable 80,000 Capital stock (40,000 shares outstanding) 4,000 Additional paid-in capital 56,000 Retained earnings 42,023 Sales revenue 0 Cost of goods sold 0 Wage expense 0 Selling, general, and administrative expense 0 Supplies expense 0 Rent expense 0 Depreciation expense 0 Interest expense 0 Income tax expense 0 Dividends 0 TOTALS: $234,113 $234,113
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Homework 2 continued over Homework 2 continued Required: a. Prepare journal entries to record the following transactions and year-end adjustments for 2009. (All the accounts you need are listed on the trial balance above). 1. The corporation purchased inventory for sale during 2009 at a cost of $221,187. All purchases were made on account. Merchandise inventory 221,187 Accounts payable 221,187 2. During 2009 the corporation paid $218,740 to suppliers for inventory previously purchased on account. Accounts payable
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Mgmt 200 Spring 2010 Homework 2 Solution - LAST NAME FIRST...

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