PROBLEM 5-5B
WRIGHT COMPANY
Income Statement
For the Year Ended December 31, 2014
Sales
Sales revenue ………………………………… $972,000
Less: Sales returns and
allowances ……………………….. $ 46,000
Sales discounts……………………. 12,000 58,000
Operating expenses
Salaries and wages expense …………… 152,000
Freight-out …………………………………….. 20,000
Rent expense ($20,000 – $2,000) ……… 18,000
PROBLEM 5-6B
(a) Nov. 30 Supplies Expense ……………………………… 4,800
Supplies ($8,800 – $4,000) …………… 4,800
30 Depreciation Expense ……………………….. 20,000
(b)
Supplies
11/30 Bal. 8,800
11/30 4,800
11/30 Bal. 4,000
11/30 4,800
11/30 Bal. 4,800
11/30 20,000
11/30 Bal. 61,000
11/30 Bal. 20,000
11/30 4,400
11/30 Bal. 4,400
11/30 3,000
11/30 Bal. 3,000
11/30 3,000
11/30 Bal. 3,000
Interest Expense
11/30 4,400
11/30 Bal. 4,400
PROBLEM 5-6B (Continued)
(c) BUSE’S FASHION CENTER
Adjusted Trial Balance
November 30, 2014
Cash ……………………………………………………….
Accounts Receivable ………………………………
Equipment …………………………………………..
Notes Payable …………………………………………
Accounts Payable …………………………………..
Interest Payable ………………………………………
Income Taxes Payable …………………………..
Common Stock ……………………………………….
Retained Earnings …………………………………..
Dividends ……………………………………………….
Sales Revenue ………………………………………..
PROBLEM 5-6B (Continued)
(d) BUSE’S FASHION CENTER
Income Statement
For the Year Ended November 30, 2014
Sales
Sales revenue ……………………………………. $757,200
Operating expenses
Salaries and wages expense ………………. $110,000
Advertising expense ………………………….. 26,400
Rent expense …………………………………….. 24,000
BUSE’S FASHION CENTER
Retained Earnings Statement
For the Year Ended November 30, 2014
Retained earnings, December 1, 2013 ……….. $30,000
Plus: Net income …………………………………….. 15,200
PROBLEM 5-6B (Continued)
BUSE’S FASHION CENTER
Balance Sheet
November 30, 2014
Assets
Current assets
Cash …………………………………………. $37,700
Accounts receivable ………………….. 33,700
Inventory …………………………………… 43,000
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable …………………………………………….. $24,000
Accounts payable ……………………………………….. 17,800
Interest payable ………………………………………….. 4,400
PROBLEM 5-7B
ALMA’S DEPARTMENT STORE
Income Statement (Partial)
For the Year Ended December 31, 2014
Sales
Sales revenue ……………………. $702,000
Less: Sales returns and
allowances ………………. 8,000
Net sales ………………………………….. 694,000
Cost of goods sold
Inventory, January 1 …………… $ 40,500
PROBLEM 5-8B
(a)
2013 2014 2015
Cost of goods sold:
Beginning inventory $ 16,000 $ 11,300 $ 16,400
Plus: Purchases 146,900 155,700 139,200
(b)
2013 2014 2015
(c)
2013 2014 2015
Beginning accounts payable $ 17,000 $ 28,000 $ 24,700
Plus: Purchases 146,900 155,700 139,200
*PROBLEM 5-9B
(a) General Journal
Date
Account Titles
Debit
Credit
Nov.
5
Purchases ………………………………………………….
1,600
Accounts Payable ……………………………..
1,600
7
Freight-In …………………………………………………..
90
Cash …………………………………………………
90
9
Accounts Payable ………………………………………
350
Purchase Returns and
Allowances ……………………………….
350
10
Accounts Receivable …………………………..……..
1,000
Sales Revenue ………………………………….
1,000
12
Purchases ………………………………………………….
945
Accounts Payable ……………………………..
945
14
Accounts Payable ($1,600 – $350) ………………
1,250
Purchase Discounts ………………………….
($1,250 X 2%)
25
Cash ($1,250 – $25) …………………………..
1,225
17
Accounts Payable ………………………………………
45
Purchase Returns and
45
20
Accounts Receivable …………………………..……..
1,330
Sales Revenue ………………………………….
1,330
21
Accounts Payable ($945 – $45) …………………..
900
Purchase Discounts ………………………….
891
*PROBLEM 5-9B (Continued)
Date
Account Titles
Debit
Credit
Nov.
27
Sales Returns and Allowances ……………………
150
Accounts Receivable …………………………
150
30
Cash ……………………………………………………….
Accounts Receivable …………………………
(b)
Cash
11/1 Bal. 3,300
11/30 1,900
11/7 90
11/14 1,225
11/21 891
11/30 Bal. 2,994
11/30 Bal. 2,330
11/30 Bal. 280
Inventory
11/1 Bal. 4,700
11/30 Bal. 4,700
11/21 900
11/30 Bal. 0
11/30 Bal. 2,545
Common Stock
11/1 Bal. 8,000
11/30 Bal. 8,000
Sales Revenue
Sales Returns and Allowances
11/27 150
11/30 Bal. 150
*PROBLEM 5-9B (Continued)
Purchase
Returns and Allowances
11/9 350
11/17 45
11/30 Bal. 395
11/14 25
11/21 9
11/30 Bal. 34
Freight-In
11/7 90
11/30 Bal. 90
(c)
WINONA SPORTS
Trial Balance
November 30, 2014
Debit Credit
Cash …………………………………………………………………. $ 2,994
Accounts Receivable ………………………………………… 280
Inventory ………………………………………………………….. 4,700
Accounts Payable……………………………………………… $ –0–
*PROBLEM 5-9B (Continued)
(d)
WINONA SPORTS
Income Statement (Partial)
For the Month Ended November 30, 2014
______________________________________________________________
Sales
Sales revenue ……………………….. $2,330
Less: Purchase returns
and allowances …………… $395
Purchase discounts ….. 34 429
Net purchases ………………………. 2,116
Add: Freight-in ……………………. 90