Hi, I have one assignment which is bit complicated. It's a comprehensive problem. Do you think you could be able to help me with it?
Yes I do comprehensive problems.Thank you for requesting me. Please post your question.
Foundations of Accounting I
Alli Co. is a merchandising business. The account balances for Alli Co. as of November 30, 2012 (unless otherwise indicated), are as follows:
110 Cash $ 73,920
112 Accounts Receivable 37,875
113 Allowance for Doubtful Accounts 3,500
115 Merchandise Inventory 133,900
116 Prepaid Insurance 3,750
117 Store Supplies 2,850
123 Store Equipment 100,800
124 Accumulated Depreciation-Store Equipment 20,160
210 Accounts Payable 21,450
211 Salaries Payable 0
218 Interest Payable 0
220 Note Payable (Due 2017) 10,000
310 P. Williams, Capital (January 1, 2012) 89,510
311 P. Williams, Drawing 40,000
312 Income Summary 0
410 Sales 853,040
411 Sales Returns and Allowances 20,600
412 Sales Discounts 13,200
510 Cost of Merchandise Sold 414,575
520 Sales Salaries Expense 74,400
521 Advertising Expense 18,000
522 Depreciation Expense 0
523 Store Supplies Expense 0
529 Miscellaneous Selling Expense 2,800
530 Office Salaries Expense 40,500
531 Rent Expense 18,600
532 Insurance Expense 0
533 Bad Debt Expense 0
539 Miscellaneous Administrative Expense 1,650
550 Interest Expense 240
Alli Co. uses the perpetual inventory system and the last-in, first-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the Last-in, first-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt.
The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily).
Alli Co. sells four types of television entertainment units.
The sale prices of each are:
TV A: $3,500
TV B: $5,250
TV C: $6,125
PS D: $9,000
During December, the last month of the accounting year, the following transactions were completed:
Dec. 1. Issued check number 2632 for the December rent, $2,200.
19. Issued check number 2636 to buy two TV C units, $7,600.
19. Issued check number 2637 for $6,100 to Joseph Co. on account.
892, terms 1/10, n/30, FOB shipping point.
25. Received notification that Marie Co. has been granted bankruptcy with no
amount of recovery. We are to write-off her amount due. (Note: See page
402 for entry required.)
27. Issued check number 2640 for sales salaries of $1,750 and office
salaries of $950.
terms 2/10, n/30, FOB shipping point.
paid on December 20. (Round calculations to the nearest dollar.)
of December 24 and discount.
a. Merchandise inventory on December 31 $110,200
b. Insurance expired during the year 1,250
c. Store supplies on hand on December 31 975
d. Depreciation for the current year needs to be calculated. Alli Co. uses the
Straight-line method, the store equipment has a useful life of 10 years with no salvage value. (NOTE: the purchase and return will not be included as the dates of the transactions were after the 15th of the month).
e. Accrued salaries on December 31:
Sales salaries $480
Office salaries 260 530
f. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month (round answer to the nearest dollar amount).
g. Net realizable value of Accounts Receivable is determined to be $30,000.
8. Prepare a multiple-step income statement, a statement of owner's equity, and a
classified balance sheet in good form.
9. Journalize and post the adjusting entries.
in both balance columns opposite the closing entry.
This is long question. Please let me review and get back to you. Please advise your deadline for this question.
I reviewed the question but I am sorry I won't be able to complete such a long question today. I will opt out so that other experts can help you. Regards Linda
Please download the answer below,
I hope this help...
BS in Business Administration:
Options in Accounting & Finance
Are you able to see it?
Ooops, sorry!! I just saw the link has 16 pages. Thank you! Let me check it.
Really appreciate it!!!