Title: Problem 5-6BB
QA_Ori:
FOSTER PRODUCTS COMPANY
Work Sheet
For Year Ended October 31, 2013
Unadjusted
Trial Balance Adjustments
Adjusted
Trial Balance
Income
Statement Balance Sheet
Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash……………….…….……7,400 7,400 7,400
Merchandise inventory……...24,000 (
d
)
2,700 21,300 21,300
Store supplies………...........9,700 (
a
)
6,000 3,700 3,700
Sales returns and
allowances……………………
5,000 5,000 5,000
Cost of goods sold..............75,800 (
d
)
2,700 78,500 78,500
00
0
0
Title: Serial Problem
QA_Ori:
Part 1
Journal entries
4-Jan Wages Expense 623 125
Wages Payable 210 500
Cash 101 625
Paid employee.
5-Jan Cash 101
25,00
0
A. Lopez, Capital 301
25,00
0
Additional investment by owner.
Computer Services Revenue 403 4,000
Collected cash revenue from customer.
17-Jan Accounts Payable 201 5,800
Merchandise Inventory 119 58
Cash 101 5,742
Paid account payable within discount period.
(Discount taken = $5,800 x .01 = $58)
20-Jan Sales Returns and Allowances 414 500
Accounts Receivable—Liu Corp. 106.5 500
22-Jan Cash 101 4,653
Sales Discounts 415 47
Accounts Receivable—Liu Corp 106.5 4,700
24-Jan Accounts Payable 201 496
Merchandise Inventory 119 496
Returned merchandise for credit.
Merchandise Inventory 119 4,640
To record cost of Jan. 26 sale.
29-Jan No entry recorded in the journal.
31-Jan Wages Expense 623 1,250
Cash 101 1,250
Paid employee wages.
1-Feb Prepaid Rent 131 2,475
Cash 101 2,475
Paid three months’ rent in advance.
3-Feb Accounts Payable 201 8,504
Amount due to Kansas Corp.
$8,41
4
5-Feb Advertising Expense 655 600
Cash 101 600
Purchased ad in local newspaper.
11-Feb Cash 101 5,500
Accounts Receivable—Alex’s Eng. Co. 106.1 5,500
Collected accounts receivable.
Cash 101 192
Reimbursed Lopez for business mileage.
8-Mar Computer Supplies 126 2,730
Accounts Payable 201 2,730
Purchased supplies on credit.
9-Mar Cash 101 3,220
Accounts Rec.—Delta Co. 106.7 3,220
Collected accounts receivable.
11-Mar Repairs Expense–Computer 684 960
Cash 101 960
Paid for computer repairs.
16-Mar Cash 101 5,260
Computer Services Revenue 403 5,260
Collected cash revenue from customer.
Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 58,160
Jan. 4 625 57,535
5 25,000 82,535
9 2,668 85,203
15 600 84,603
16 4,000 88,603
17 5,742 82,861
22 4,653 87,514
31 1,250 86,264
Feb. 1 2,475 83,789
3 8,414 75,375
Mar. 9 3,220 77,503
Accounts Receivable—Alex’s Engineering
Co. Acct. No. 106.1
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Accounts Receivable—Wildcat Services Acct. No. 106.2
Date Explanation PR Debit Credit Balance
Accounts Receivable—Easy Leasing Acct. No. 106.3
Date Explanation PR Debit Credit Balance
Accounts Receivable—IFM Co. Acct. No. 106.4
Date Explanation PR Debit Credit Balance
Accounts Receivable—Liu Corporation Acct. No. 106.5
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Jan. 13 5,200 5,200
20 500 4,700
22 4,700 0
Accounts Receivable—Gomez Co. Acct. No. 106.6
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 2,668
Jan. 9 2,668 0
Accounts Receivable—Delta Co. Acct. No. 106.7
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Accounts Receivable—KC, Inc. Acct. No. 106.8
Date Explanation PR Debit Credit Balance
Accounts Receivable—Dream, Inc. Acct. No. 106.9
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 0
Merchandise Inventory Acct. No. 119
Date Explanation PR Debit Credit Balance
Dec.
31 Balance 0
Computer Supplies Acct. No. 126
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,665
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 825
Feb. 1 2,475 3,300
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 8,000
Accumulated Depreciation—Office
Equipment Acct. No. 164
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 400
Computer Equipment Acct. No. 167
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 20,000
Accumulated Depreciation—Computer
Equipment Acct. No. 168
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,250
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,100
Jan. 7 5,800 6,900
Wages Payable Acct. No. 210
Date Explanation PR Debit Credit Balance
Unearned Computer Services Revenue Acct. No. 236
Date Explanation PR Debit Credit Balance
Dec. 31 Balance 1,500
Jan. 11 1,500 0
A. Lopez, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
A. Lopez, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Feb. 15 4,800 4,800
Computer Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Jan. 11 7,000 7,000
Sales Acct. No. 413
Date Explanation PR Debit Credit Balance
Jan. 13 5,200 5,200
Sales Returns and Allowances Acct. No. 414
Date Explanation PR Debit Credit Balance
Jan. 20 500 500
Sales Discounts Acct. No. 415
Date Explanation PR Debit Credit Balance
Jan. 22 47 47
Cost of Goods Sold Acct. No. 502
Date Explanation PR Debit Credit Balance
Jan. 13 3,560 3,560
Depreciation Expense—Office Equipment Acct. No. 612
Date Explanation PR Debit Credit Balance
Depreciation Expense—Computer
Equipment Acct. No. 613
Date Explanation PR Debit Credit Balance
Wages Expense Acct. No. 623
Date Explanation PR Debit Credit Balance
Insurance Expense Acct. No. 637
Date Explanation PR Debit Credit Balance
Rent Expense Acct. No. 640
Date Explanation PR Debit Credit Balance
Computer Supplies Expense Acct. No. 652
Date Explanation PR Debit Credit Balance
Advertising Expense Acct. No. 655
Date Explanation PR Debit Credit Balance
Feb. 5 600 600
Mileage Expense Acct. No. 676
Date Explanation PR Debit Credit Balance
Miscellaneous Expenses Acct. No. 677
Date Explanation PR Debit Credit Balance
Repairs Expense—Computer Acct. No. 684
Date Explanation PR Debit Credit Balance
Mar. 11 960 960