PROBLEM 5-1A
(a) June 1 Inventory ……………………………………………… 1,600
3 Accounts Receivable ……………………………. 2,500
Cost of Goods Sold………………………………. 1,440
6 Accounts Payable ………………………………… 100
9 Accounts Payable ($1,600 – $100) …………. 1,500
Inventory
15 Cash ……………………………………………………. 2,500
17 Accounts Receivable ……………………………. 1,800
Cost of Goods Sold………………………………. 1,080
20 Inventory ……………………………………………… 1,500
24 Cash ……………………………………………………. 1,764
26 Accounts Payable …………………………..……. 1,500
Inventory
PROBLEM 5-1A (Continued)
June 28 Accounts Receivable ……………………………. 1,400
Cost of Goods Sold ………………………………. 850
30 Sales Returns and Allowances ……………… 120
Inventory …………………………..…………………. 72
PROBLEM 5-2A
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Credit
May 1
Inventory ……………………………………
Accounts Payable ………………..
120
201
4,200
2
Accounts Receivable …………………..
Sales Revenue ……………………..
Cost of Goods Sold …………………….
Inventory ……………………………..
112
401
505
120
2,100
1,300
5
Accounts Payable ……………………….
Inventory ……………………………..
201
120
300
9
Cash ($2,100 – $21) ……………………..
Sales Discounts ($2,100 X 1%) …….
Accounts Receivable ……………
101
414
112
2,079
21
2,100
10
Accounts Payable ($4,200 – $300) ……
Inventory ($3,900 X 2%) ………..
Cash ……………………………………
201
120
101
78
3,822
11
Supplies ……………………………………..
Cash ……………………………………
126
101
400
12
Inventory ……………………………………
Cash ……………………………………
120
101
1,400
15
Cash …………………………………………..
Inventory ……………………………..
101
120
150
17
Inventory ……………………………………
Accounts Payable ………………..
120
201
1,300
19
Inventory ……………………………………
Cash ……………………………………
120
101
130
PROBLEM 5-2A (Continued)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
May 24
Cash …………………………………………….
Sales Revenue ……………………….
Cost of Goods Sold ……………………….
Inventory …………………………..…..
101
401
505
120
3,200
2,000
3,200
2,000
25
Inventory ………………………………………
Accounts Payable …………………..
120
201
620
620
27
Accounts Payable …………………………
Inventory
($1,300 X 2%) ………………………
Cash ………………………………………
201
120
101
1,300
26
1,274
29
Sales Returns and Allowances ……….
Cash ………………………………………
Inventory ………………………………………
Cost of Goods Sold ………………..
412
101
120
505
70
30
70
30
31
Accounts Receivable …………………….
Sales Revenue ……………………….
Cost of Goods Sold ……………………….
Inventory …………………………..…..
112
401
505
120
1,000
560
1,000
560
PROBLEM 5-2A (Continued)
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
9
10
11
12
15
19
24
27
29
Balance
J1
J1
J1
J1
J1
J1
J1
J1
J1
2,079
150
3,200
3,822
400
1,400
130
1,274
70
5,000
7,079
3,257
2,857
1,457
1,607
1,477
4,677
3,403
3,333
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
May 2
9
31
J1
J1
J1
2,100
1,000
2,100
2,100
0
1,000
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
2
5
10
12
15
17
19
24
25
27
J1
J1
J1
J1
J1
J1
J1
J1
J1
J1
J1
4,200
1,400
1,300
130
620
1,300
300
78
150
2,000
26
4,200
2,900
2,600
2,522
3,922
3,772
5,072
5,202
3,202
3,822
3,796
PROBLEM 5-2A (Continued)
Supplies No. 126
Date
Explanation
Ref.
Debit
Credit
Balance
May 11
J1
400
400
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
5
10
17
25
27
J1
J1
J1
J1
J1
J1
300
3,900
1,300
4,200
1,300
620
4,200
3,900
0
1,300
1,920
620
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
May 1
Balance
5,000
Sales Revenue No. 401
Date
Explanation
Ref.
Debit
Credit
Balance
May 2
24
31
J1
J1
J1
2,100
3,200
1,000
2,100
5,300
6,300
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
May 29
J1
70
70
Sales Discounts No. 414
Date
Explanation
Ref.
Debit
Credit
Balance
May 9
J1
21
21
PROBLEM 5-2A (Continued)
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Credit
Balance
May 2
24
29
31
J1
J1
J1
J1
1,300
2,000
560
30
1,300
3,300
3,270
3,830
(c) LATONA HARDWARE STORE
Income Statement (Partial)
For the Month Ended May 31, 2015
Sales
Sales revenue …………………………………………….. $6,300
Less: Sales returns and allowances ……………. $70
Sales discounts ………………………………… 21 91
PROBLEM 5-3A
(a) THE DELUXE STORE
Income Statement
For the Year Ended November 30, 2015
Sales
Sales revenue ……………………………… $700,000
Less: Sales returns & allowances … 8,000
Net sales ……………………………………… 692,000
Cost of goods sold …………………………….. 507,000
Gross profit ……………………………………….. 185,000
PROBLEM 5-3A (Continued)
THE DELUXE STORE
Retained Earnings Statement
For the Year Ended November 30, 2015
Retained Earnings, December 1, 2014 ……………………………………. $61,700
90,800
Less: Dividends …………………………………………………………………… 10,000
THE DELUXE STORE
Balance Sheet
November 30, 2015
Assets
Current assets
Cash …………………………………………… $ 26,000
Accounts receivable ……………………. 30,500
Inventory ……………………………………. 29,000
Prepaid insurance ……………………….. 3,500
PROBLEM 5-3A (Continued)
THE DELUXE STORE
Balance Sheet (Continued)
November 30, 2015
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………………………… $25,200
Sales commissions payable ………………………………. 4,500
Property taxes payable ………………………………………. 2,500
Total current liabilities ………………………………… $ 32,200
Long-term liabilities
Notes payable …………………………………………………… 37,000
(b) Nov. 30 Depreciation Expense ………………………… 11,000
Accumulated Depreciation—
Insurance Expense …………………………….. 7,000
Property Tax Expense ………………………… 2,500
Sales Commissions Expense ……………… 4,500