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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
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
Debit
Credit
Cash ................................................................
Accounts Receivable ....................................
Equipment ..................................................
Notes Payable ................................................
Accounts Payable .........................................
Interest Payable .............................................
Income Taxes Payable ................................
Common Stock ..............................................
Retained Earnings .........................................
Dividends .......................................................
Sales Revenue ...............................................
$ 37,700
33,700
12,000
$ 61,000
62,000
17,800
4,400
3,000
80,000
30,000
757,200
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
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
*PROBLEM 5-9B (Continued)
Date
Account Titles
Debit
Credit
Nov.
27
Sales Returns and Allowances ........................
150
Accounts Receivable ..............................
150
(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. 280
Inventory
11/1 Bal. 4,700
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
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
