View the step-by-step solution to:

On January 10, sell merchandise on account to Rayms $9,000 and Fischer $8,600. Terms 2/10, n/30. shipping point.

1. On January 10, sell merchandise on account to Rayms $9,000 and Fischer $8,600. Terms 2/10, n/30. F.O.B. shipping point.
2. On January 12, purchase merchandise on account from Zapfel $3,200 and Liotta $2,600. Terms 1/10, n/30., F.O.B. destination.
3. Receive checks, $4,500 from Longhini and $2,500 from Hall, for sales on account after discount period has lapsed.
4. On January 15, send checks to Joosten for 9,000 less 3% cash discount, and to Maida for $10,000 less 2% cash discount.
5. On January 16, issue credit of $500 to Fieber for merchandise returned.
6. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12.
7. On Feburary 9, receive payment in full from Rayms and Fischer.
8. On March 1, pay rent of $48,000 for a two-year term.from May 1 (2012)
9. On April 1,the company CEO paid 49999 from her saving bank account to purchase a care for personal use.
10 On April 12, Pay $700 cash for office supplies.
11. Cash dividends totaling $1000 are declared on June 13 and paid to stockholders on June 23.
12. Issue a note of $120,000 to bank (one year, annual interest rate 4%) for cash on July 1.
13. On July 5, purchase merchandise from Maida $32,000, terms 3/10, n/30.
14. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $16,000.
15. On July 8, return $300 of merchandise to Maida and receive credit.
16. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30.FO.B. shipping point.
17. Pay off the balance to Maida on August 4.
18. On August 8, paid utilities expense $10209.
19. On August 18 Lachey paid of its balance.
20. On September 1, paid cash 7500 to Farmington for merchandise purchased last year
21. On October 1, pay off notes payable $110,000 and associated accrued interest $5,000, of which $1,500 was shown on the balance sheet.
22. Over the year, sales and office employees earned $46,500 in salaries and wages, of which $2,500 was still payable at the end of year.
23 On dec 31, received an Utilities bill of 1250 for Dec 12 and paid off the bill on January 10, 2013
Additional Information at the end of the year:

1. Depreciation expense for the year was $14,500.
2. The company estimated that it has to pay federal income tax, $4,250.
3. After physically counting, the company decided that the ending inventories worth $41,164.
4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales.
5. Unearned revenue is decreased by $10,000.
6. The company expenses all of the supplies purchased during the year.
7. No insurance policy is effective during the year.
8. The company used the gross method to record its purchases and sales on credit.
9. The company adopts the periodic inventory system.
10. Rayms, Fisher, and Lachey had a zero balance on account as of jan1, 2012


Prepare Journal entries for each event
Prepare adjusting entries
Prepare adjusted trial balance
Prepare income statement , retained earning statement and balance sheet
Prepare closing entries
Plese use excel sheet
Sign up to view the entire interaction

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question