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The post-closing trial balance Auto Parts 31, 20x4 is given

Customer Question

The post-closing trial balance
for Garza Auto Parts for December 31, 20x4 is given below:
Garza Auto Parts
Post-Closing Trial Balance
Dec 31, 20x4
Debit Credit
Cash $11,520
Accounts Receivable 3,820
Allowance for Bad Debts - 0 -
Inventory 9,500
Supplies 250
Prepaid Rent - 0 -
Prepaid Insurance 640
Store Equipment 23,600
Accumulated Depreciation $14,160
Accounts Payable 4,660
Short-term Notes Payable 16,000
Interest Payable (on the $16,000 note) 400
Salaries Payable 580
Unearned Revenue - 0 -
Common Stock($4 par) 1,000
Additional Paid in Capital 4,000
Retained Earnings ______ 8,530
$49,330 $49,330
Instructions:
1. During 20x5, the following transactions occurred. Prepare any necessary journal entries.
You will also post all journal entries to appropriate T-accounts. The post-closing trial
balance on the previous page lists the permanent (balance sheet) accounts which Garza
Auto Parts uses; you should set up T-accounts for the temporary accounts (e.g.,
revenues, expenses) and new accounts as needed.
DO NOT PREPARE MONTHLY ADJUSTING AND CLOSING ENTRIES; wait
until year-end to prepare these entries, unless otherwise directed in the transaction
description. Garza Auto Parts does not use reversing entries.
Jan 1 Sold store equipment for $9,000. The equipment originally cost $10,000 and had
a book value of $7,000. (Given this information, you should be able to derive the
accumulated depreciation on the equipment and determine the gain or loss on the
sale.)
Ja 1 The company sold 1000 shares of common stock to the market. The par value was
$4 and market value of the stock was $10 per share.
Jan 5 Entered into a rental agreement with Cuellar, Inc. Garza paid $2,700 for an 18-
month lease of storage space. Garza debited a nominal (temporary) account at the
time of the transaction.
Jan 9 Purchased inventory on account for $26,500. Garza Auto Parts uses a periodic
system of inventory control. See Illustration 8-4 in your text for a discussion of
the periodic inventory system.
Jan 15 Paid salaries owed to employees at the end of 20x4.
Jan 21 Sold goods on account for $20,000. Made cash sales of $15,000.
Feb 19 Received payment of $16,000 from customers for previous sales made on
account.
Feb 25 Paid $9,000 to vendors for previous purchases of inventory made on account.
Mar 8 Sold goods for $14,000 on account. Made cash sales of $11,000.
Mar 16 Credited customer accounts for $2,300 of merchandise returned.
Mar 31 Paid the remaining amounts owed to vendors for all goods and services purchased
on account. Hint: this amount should be $22,160.
April 1 Paid the $16,000 note and all interest accrued to date. The company had
borrowed the $16,000 on October 1, 20x4. Interest accrued on the note at rate of
10% annually.
April 1 Purchased additional store equipment for $12,000 (paid cash).
May 1 Borrowed $15,000 from the bank by issuing a 2 year note. Interest accrues on the
note at a rate of 10% annually. Interest is to be paid when the note is due.
May 16 Purchased inventory on account for $28,000.
June 13 Sold $16,000 worth of goods on account and made cash sales of $14,000.
June 30 Incurred and paid salaries and utilities expenses of $9,000 and $2,000,
respectively.
July 8 Received payment of $23,000 from customers for previous sales made on
account.
Aug 31 The prior insurance policy on Garza's operating assets expired on this date;
prepare a journal entry to record this event. Garza replaced this policy with a 12-
month policy by paying $12,000. Garza debited a permanent (real) account to
record the new policy.
Sept 17 Purchased supplies on account for $4,500. Garza debited a permanent account to
record the transaction.
Sept 30 Paid all amounts owed to vendors for inventory and supplies purchased on
account.
Oct 8 Received $6,000 in advance for products to be shipped to customers by January
20, 20x6. Garza recognized this cash receipt by crediting a temporary account.
Nov 15 Sold $19,000 worth of goods to customers on account. Made cash sales of
$13,000.
Nov 24 The company declared and distributed cash dividends totaling $14,000 to its
shareholders. To record this transaction, they debited the Dividend account.
Dec 12 Received payment of $17,000 for previous sales made on account.
Dec 31 Incurred and paid salaries and utilities expenses of $8,000 and $1,250,
respectively.
2. Based on (1) the previous transactions and (2) the following information, prepare and
post all necessary adjusting entries at year-end.
* A physical count revealed supplies on hand of $1,900 on December 31, 20x5.
* Depreciation on the store equipment is 10% per year (the equipment has an estimated life of 10
years). Salvage value on the equipment is zero. Record partial year depreciation on equipment
purchased during the year.
* All $6,000 worth of goods paid for in advance on Oct 8th were delivered to customers on
Jan 20, 20x6, as promised.
* Salaries and utilitie
Submitted: 1 year ago.
Category: Finance
Expert:  Manal Elkhoshkhany replied 1 year ago.

Hello

Please advise your deadline.

Thank you

Customer: replied 1 year ago.
Monday, 09/21/2015 @ 5pmThank you
Expert:  Manal Elkhoshkhany replied 1 year ago.

Thank you. The problem was cut off. Please post the full problem (preferably attach a file by uploading it to www.mediafire.com then copy and paste the share link here.

Expert:  Manal Elkhoshkhany replied 1 year ago.

Hello

Please note that the problem is not complete as I have advised you earlier, it is impossible that I can finish it at 5:00 P.M. tonight. Please advise if the deadline can be extended. Please also note that the amount offered would not compensate for the work involved, a fair amount for this problem would be between $80 and $90; please advise if you agree.

Thank you

Customer: replied 1 year ago.
The post-closing trial balance for Garza Auto Parts for December 31, 20x4 is given below:
Garza Auto Parts
Post-Closing Trial Balance
December 31, 20x4
Debit Credit
Cash $11,520
Accounts Receivable 3,820
Allowance for Bad Debts - 0 -
Inventory 9,500
Supplies 250
Prepaid Rent - 0 -
Prepaid Insurance 640
Store Equipment 23,600
Accumulated Depreciation $14,160
Accounts Payable 4,660
Short-term Notes Payable 16,000
Interest Payable (on the $16,000 note) 400
Salaries Payable 580
Unearned Revenue - 0 -
Common Stock($4 par) 1,000
Additional Paid in Capital 4,000
Retained Earnings ______ 8,530
$49,330 $49,330
Instructions:
1.During 20x5, the following transactions occurred. Prepare any necessary journal entries.You will also post all journal entries to appropriate T-accounts. The post-closing trialbalance on the previous page lists the permanent (balance sheet) accounts which GarzaAuto Parts uses; you should set up T-accounts for the temporary accounts (e.g.,revenues, expenses) and new accounts as needed.DO NOT PREPARE MONTHLY ADJUSTING AND CLOSING ENTRIES; wait until year-end to prepare these entries, unless otherwise directed in the transaction description. Garza Auto Parts does not use reversing entries.
January 1 Sold store equipment for $9,000. The equipment originally cost $10,000 and had a book value of $7,000. (Given this information, you should be able to derive the accumulated depreciation on the equipment and determine the gain or loss on the sale.)
January 1 The company sold 1000 shares of common stock to the market. The par value was $4 and market value of the stock was $10 per share.
January 5 Entered into a rental agreement with Cuellar, Inc. Garza paid $2,700 for an 18-month lease of storage space. Garza debited a nominal (temporary) account at the time of the transaction.
January 9 Purchased inventory on account for $26,500. Garza Auto Parts uses a periodic system of inventory control. See Illustration 8-4 in your text for a discussion of the periodic inventory system.
January 15 Paid salaries owed to employees at the end of 20x4.
January 21 Sold goods on account for $20,000. Made cash sales of $15,000.
February 19 Received payment of $16,000 from customers for previous sales made on account.
February 25 Paid $9,000 to vendors for previous purchases of inventory made on account.
March 8 Sold goods for $14,000 on account. Made cash sales of $11,000.
March 16 Credited customer accounts for $2,300 of merchandise returned.
March 31 Paid the remaining amounts owed to vendors for all goods and services purchased on account. Hint: this amount should be $22,160.
April 1 Paid the $16,000 note and all interest accrued to date. The company had borrowed the $16,000 on October 1, 20x4. Interest accrued on the note at rate of 10% annually.
April 1 Purchased additional store equipment for $12,000 (paid cash).
May 1 Borrowed $15,000 from the bank by issuing a 2 year note. Interest accrues on the note at a rate of 10% annually. Interest is to be paid when the note is due.
May 16 Purchased inventory on account for $28,000.
June 13 Sold $16,000 worth of goods on account and made cash sales of $14,000.
June 30 Incurred and paid salaries and utilities expenses of $9,000 and $2,000, respectively.
July 8 Received payment of $23,000 from customers for previous sales made on account.
August 31 The prior insurance policy on Garza's operating assets expired on this date; prepare a journal entry to record this event. Garza replaced this policy with a 12-month policy by paying $12,000. Garza debited a permanent (real) account to record the new policy.
September 17 Purchased supplies on account for $4,500. Garza debited a permanent account to record the transaction.
September 30 Paid all amounts owed to vendors for inventory and supplies purchased on account.
October 8 Received $6,000 in advance for products to be shipped to customers by January 20, 20x6. Garza recognized this cash receipt by crediting a temporary account.
November 15 Sold $19,000 worth of goods to customers on account. Made cash sales of $13,000.
November 24 The company declared and distributed cash dividends totaling $14,000 to its shareholders. To record this transaction, they debited the Dividend account.
December 12 Received payment of $17,000 for previous sales made on account.
December 31 Incurred and paid salaries and utilities expenses of $8,000 and $1,250, respectively.
2. Based on (1) the previous transactions and (2) the following information, prepare and post all necessary adjusting entries at year-end.
* A physical count revealed supplies on hand of $1,900 on December 31, 20x5.
* Depreciation on the store equipment is 10% per year (the equipment has an estimated life of 10 years). Salvage value on the equipment is zero. Record partial year depreciation on equipment purchased during the year.
* All $6,000 worth of goods paid for in advance on October 8th were delivered to customers on January
Customer: replied 1 year ago.
please use the 2nd attachmentThank you.
Customer: replied 1 year ago.
When I offered to use this service I was never told amount paid is dependent on question asked nor is negotiated by the expert to handle. If I had know I would have probably evaluated my option and decided otherwise. As it stands now I cannot afford that amount, and I do honestly hoped I 'm not charged for a service I'm not offered. However if you would still go ahead to do it, kindly let me know the earliest time to revert with solution, so I can determine my next line of action.
Thank you
Expert:  Manal Elkhoshkhany replied 1 year ago.

I am sorry but I am not really familiar with how the service is offered (from the student's side), but it is how the site works. I will opt out in case another expert is willing to answer the question at the offered amount. if the deadline can be extended, please state that so that there is a bigger chance of getting help.

Customer: replied 1 year ago.
Deadline 11.59pm Monday ,09/21/2015
Customer: replied 1 year ago.
Please may I know who you referred me to, as I'm yet to get and response. Time is not my friend, so I know what next to do.