Homework 2 Solution - LAST NAME: _ FIRST NAME_PUID_...

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LAST NAME: _____________ FIRST NAME______________PUID_________________ Management 200 – Introductory Financial Accounting– Maymester 2010 Krannert School of Management - Purdue University Homework 2 – due Tuesday, May 25, 2010 – SOLUTION IMPORTANT: This homework must be turned in on these 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 1,725 Accounts receivable 19,360 Supplies inventory 486 Merchandise inventory 25,442 Prepaid rent 1,800 Land 62,400 Plant and equipment, at cost 122,800 Accumulated depreciation 36,840 Accounts payable 8,608 Wages payable 732 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
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TOTALS: $234,013 $234,013 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 218,740 Cash 218,740 3. Sales revenue (excluding special orders from part 13) totaled $346,906 for 2009. $232,700 was for cash, the remaining $114,206 was on credit.
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This note was uploaded on 02/20/2012 for the course MGMT 200 taught by Professor Greigg during the Fall '08 term at Purdue University-West Lafayette.

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Homework 2 Solution - LAST NAME: _ FIRST NAME_PUID_...

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