Mgmt 200 Spring 2011 Homework 2 solution

Mgmt 200 Spring 2011 Homework 2 solution - LAST NAME FIRST...

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LAST NAME : _____________ F IRST NAME ______________PUID_________________ Please write your name in BLOCK letters and in the format: Last name, First name. Management 200 – Introductory Financial Accounting– Spring 2011 Krannert School of Management - Purdue University Homework 2 – due Wednesday, February 16, 2011 - 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. Flash Corporation, a photography store, provides the following post-closing trial balance as at December 31, 2009. 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. Flash Corporation Post-closing trial balance, December 31, 2009 Dr $ Cr $ Cash 8,680 Accounts receivable 22,490 Supplies inventory 13,950 Prepaid insurance 3,600 Land 71,200 Equipment, at cost 118,800 Accumulated depreciation 42,720 Accounts payable 10,580 Wages payable 1,650 Interest payable 1,500 Income tax payable 1,040 Customer deposits 4,200 Note payable 60,000 Common stock (50,000 shares outstanding) 70,000 Retained earnings 47,030 Dividends 0 Sales revenue 0 Wage expense 0 Supplies expense 0 Marketing expense 0 Insurance expense 0 Depreciation expense 0 Interest expense 0 Income tax expense 0 TOTALS: $238,720 $238,720
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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 2010. (All the accounts you need are listed on the trial balance above). 1. Sales revenue (excluding special orders from part 13) totaled $305,800 for 2010. $136,700 was for cash, the remaining $169,100 was on credit. Cash 136,700 Accounts receivable 169,100 Sales revenue 305,800 2. During 2010 the corporation collected $165,700 from credit customers Cash 165,700 Accounts receivable 165,700 3. The corporation purchased photographic supplies during 2010 at a cost of $146,670. All purchases were made on account and debited to Supplies inventory.
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