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PROBLEM 5-4B
(a)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 4
Inventory ...............................................
Accounts Payable.........................
120
201
840
840
6
Inventory ...............................................
Cash ..............................................
120
101
40
40
8
Accounts Receivable ...........................
Sales Revenue ..............................
Cost of Goods Sold ..............................
Inventory .......................................
112
401
505
120
1,150
790
1,150
790
10
Accounts Payable ................................
Inventory .......................................
201
120
40
40
11
Inventory ...............................................
Cash ..............................................
120
101
420
420
13
Accounts Payable ($840 – $40) ...........
Inventory .......................................
($800 X 2%)
Cash ..............................................
201
120
101
800
16
784
14
Inventory ...............................................
Accounts Payable.........................
120
201
900
900
15
Cash ......................................................
Inventory .......................................
101
120
50
50
17
Inventory ...............................................
Cash ..............................................
120
101
30
30
18
Accounts Receivable ...........................
Sales Revenue ..............................
Cost of Goods Sold ..............................
Inventory .......................................
112
401
505
120
900
540
900
540
PROBLEM 5-4B (Continued)
General Journal J1
Date
Account Titles and Explanation
Ref.
Debit
Credit
Apr. 20
Cash .....................................................
Accounts Receivable ...................
101
112
600
600
21
Accounts Payable................................
Inventory ($900 X 3%) ..................
Cash ..............................................
201
120
101
900
27
873
27
Sales Returns and Allowances ...........
Accounts Receivable ...................
412
112
40
40
30
Cash .....................................................
Accounts Receivable ...................
101
112
710
710
(b)
Cash No. 101
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
6
11
13
15
17
20
21
30
Balance
J1
J1
J1
J1
J1
J1
J1
J1
50
600
710
40
420
784
30
873
2,500
2,460
2,040
1,256
1,306
1,276
1,876
1,003
1,713
Accounts Receivable No. 112
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 8
18
20
27
J1
J1
J1
J1
1,150
900
600
40
1,150
2,050
1,450
1,410
PROBLEM 5-4B (Continued)
Inventory No. 120
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
4
6
8
10
11
13
14
15
17
18
21
Balance
J1
J1
J1
J1
J1
J1
J1
J1
J1
J1
J1
840
40
420
900
30
790
40
16
50
540
27
1,700
2,540
2,580
1,790
1,750
2,170
2,154
3,054
3,004
3,034
2,494
2,467
Accounts Payable No. 201
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 4
10
13
14
21
J1
J1
J1
J1
J1
40
800
900
840
900
840
800
0
900
0
Common Stock No. 311
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 1
Balance
4,200
Sales Revenue No. 401
PROBLEM 5-4B (Continued)
Sales Returns and Allowances No. 412
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 27
J1
40
40
Cost of Goods Sold No. 505
Date
Explanation
Ref.
Debit
Credit
Balance
Apr. 8
18
J1
J1
790
540
790
1,330
(c) DIAZ TENNIS SHOP
Trial Balance
April 30, 2015
Debit
Credit
Cash ........................................................................
Accounts Receivable .............................................
Inventory .................................................................
Common Stock .......................................................
Sales Revenue ........................................................
Sales Returns and Allowances ..............................
Cost of Goods Sold ................................................
$1,713
700
2,467
40
1,330
$6,250
$4,200
2,050
$6,250
*PROBLEM 5-5B
ROSHEK DEPARTMENT STORE
Income Statement (Partial)
For the Year Ended December 31, 2015
Sales
Sales revenue .......................... $725,000
Less: Sales returns and
allowances .................... 11,000
Net sales .................................. 714,000
Cost of goods sold
Inventory, January 1 ................ $ 40,500
Purchases ................................ $447,000
Less: Purchase returns
and allowances ............ $ 6,400
*PROBLEM 5-6B
(a)
2013
2014
2015
Cost of goods sold:
Beginning inventory
Plus: Purchases
Cost of goods available
Less: Ending inventory
Cost of goods sold
$ 13,000
146,000
159,000
(11,300)
$147,700
$ 11,300
145,000
156,300
(14,700)
$141,600
$ 14,700
129,000
143,700
(12,200)
$131,500
(b)
2013
2014
2015
Sales revenue
Less: CGS
Gross profit
$239,000
147,700
$ 91,300
$237,000
141,600
$ 95,400
$235,000
131,500
$103,500
(c)
2013
2014
2015
Beginning accounts payable
Plus: Purchases
Less: Payments to suppliers
Ending accounts payable
$ 20,000
146,000
135,000
$ 31,000
$ 31,000
145,000
161,000
$ 15,000
$ 15,000
129,000
127,000
$ 17,000
(d) Gross profit rate 138.2% 240.3% 344.0%
1$91,300 ÷
$239,000
2$95,400 ÷
$237,000
3$103,500 ÷
$235,000
the gross profit rate, actually improved.
*PROBLEM 5-7B
(a)
General Journal
Date
Account Titles and Explanation
Debit
Credit
Apr. 4
Purchases ........................................................
Accounts Payable ....................................
740
740
6
Freight-in ..........................................................
Cash ..........................................................
60
60
8
Accounts Receivable ......................................
Sales Revenue .........................................
900
900
10
Accounts Payable ...........................................
Purchase Returns and Allowances ........
40
40
11
Purchases ........................................................
Cash ..........................................................
300
300
13
Accounts Payable ($740 – $40) ......................
Purchase Discounts ($700 X 3%) ............
Cash ..........................................................
700
21
679
14
Purchases ........................................................
Accounts Payable ....................................
700
700
15
Cash .................................................................
Purchase Returns and Allowances ........
50
50
17
Freight-In ..........................................................
Cash ..........................................................
30
30
18
Accounts Receivable ......................................
Sales Revenue .........................................
1,000
1,000
20
Cash .................................................................
Accounts Receivable ...............................
500
500
21
Accounts Payable ...........................................
Purchase Discounts ($700 X 2%) ............
Cash ..........................................................
700
14
686
*PROBLEM 5-7B (Continued)
Date
Account Titles and Explanation
Debit
Credit
Apr. 27
Sales Returns and Allowances ......................
Accounts Receivable ..............................
25
25
30
Cash ................................................................
Accounts Receivable ..............................
550
550
(b)
Cash
Accounts Payable
4/1 Bal. 2,500
4/15 50
4/20 500
4/30 550
4/6 60
4/11 300
4/13 679
4/17 30
4/21 686
4/10 40
4/13 700
4/21 700
4/4 740
4/14 700
4/30 Bal. 0
4/30 Bal. 1,845
Common Stock
4/1 Bal. 4,200
Accounts Receivable
4/30 Bal. 4,200
4/8 900
4/18 1,000
4/20 500
4/27 25
4/30 550
Sales Revenue
4/8 900
4/30 Bal. 825
4/18 1,000
4/30 Bal. 1,900
Inventory
4/1 Bal. 1,700
Purchase Discounts
4/30 Bal. 1,700
4/13 21
4/21 14
Sales Returns and Allowances
4/30 Bal. 35
4/27 25
4/30 Bal. 25
Freight-In
4/6 60
Purchases
4/17 30
4/4 740
4/30 Bal. 90
4/11 300
4/14 700
4/30 Bal. 1,740
Purchase
Returns and Allowances
4/10 40
4/15 50
4/30 Bal. 90
*PROBLEM 5-7B (Continued)
(c) EVERETT TENNIS SHOP
Trial Balance
April 30, 2015
Debit
Credit
Cash .......................................................................
Accounts Receivable .............................................
Inventory ................................................................
Common Stock ......................................................
Sales Revenue .......................................................
Sales Returns and Allowances .............................
Purchases ..............................................................
Purchase Returns and Allowances ......................
Purchase Discounts ..............................................
Freight-In ................................................................
$1,845
825
1,700
25
1,740
90
$6,225
$4,200
1,900
90
35
$6,225
EVERETT TENNIS SHOP
Income Statement (Partial)
For the Month Ended April 30, 2015
Sales
Sales revenue .............................. $1,900
Less: Sales returns and
allowances ........................ 25
Net sales ...................................... 1,875
Cost of goods sold
Inventory, April 1 ......................... $1,700
COMPREHENSIVE PROBLEM SOLUTION
(a)
Dec. 6
Salaries and Wages Payable .......................
Salaries and Wages Expense ......................
Cash ......................................................
1,000
600
1,600
8
Cash ..............................................................
Accounts Receivable............................
1,900
1,900
10
Cash ..............................................................
Sales Revenue ......................................
Cost of Goods Sold ......................................
Inventory ...............................................
6,300
4,100
6,300
4,100
13
Inventory .......................................................
Accounts Payable ................................
9,000
9,000
15
Supplies ........................................................
Cash ......................................................
2,000
2,000
18
Accounts Receivable ................................
Sales Revenue ......................................
Cost of Goods Sold ......................................
Inventory ...............................................
12,000
8,000
12,000
8,000
20
Salaries and Wages Expense ......................
Cash ......................................................
1,800
1,800
23
Accounts Payable ........................................
Cash ......................................................
Inventory ($9,000 X .02) ........................
9,000
8,820
180
27
Cash ..............................................................
Sales Discounts ($12,000 X .03) ..................
Accounts Receivable............................
11,640
360
12,000
