Financial reporting and analysis

Assignment Help Financial Accounting

Reference no: EM1387542

Bluma Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Bluma are indicated in the working papers. Presented on the next page are a series of transactions for Bluma Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price.

Jan.

3 Sell merchandise on account to B. Richey $3,100, invoice no. 510, and to J. Forbes $1,800, invoice no. 511.

5 Purchase merchandise from S. Vogel $5,000 and D. Lynch $2,200, terms n/30.

7 Receive checks from S. LaDew $4,000 and B. Garcia $2,000 after discount period has lapsed.

8 Pay freight on merchandise purchased $235.

9 Send checks to S. Hoyt for $9,000 less 2% cash discount, and to D. Omara for $11,000 less 1% cash discount.

9 Issue credit of $300 to J. Forbes for merchandise returned.

10 Summary daily cash sales total $15,500.

11 Sell merchandise on account to R. Dvorak $1,600, invoice no. 512, and to S. LaDew $900, invoice no. 513.

12 Pay rent of $1,000 for January.

13 Receive payment in full from B. Richey and J. Forbes less cash discounts.

15 Withdraw $800 cash by M. Bluma for personal use.

15 Post all entries to the subsidiary ledgers.

16 Purchase merchandise from D. Omara $18,000, terms 1/10, n/30; S. Hoyt $14,200, terms 2/10, n/30; and S. Vogel $1,500, terms n/30.

17 Pay $400 cash for office supplies.

18 Return $200 of merchandise to S. Hoyt and receive credit.

20 Summary daily cash sales total $20,100.

21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due.

21 Receive payment in full from S. LaDew less cash discount.

22 Sell merchandise on account to B. Richey $2,700, invoice no. 514, and to R. Dvorak $1,300, invoice no. 515.

22 Post all entries to the subsidiary ledgers.

23 Send checks to D. Omara and S. Hoyt in full payment less cash discounts.

25 Sell merchandise on account to B. Garcia $3,500, invoice no. 516, and to J. Forbes $6,100, invoice no. 517.

27 Purchase merchandise from D. Omara $14,500, terms 1/10, n/30; D. Lynch $1,200, terms n/30; and S. Vogel $5,400, terms n/30.

27 Post all entries to the subsidiary ledgers.

28 Pay $200 cash for office supplies.

31 Summary daily cash sales total $21,300.

31 Pay sales salaries $4,300 and office salaries $3,800.

Instructions
(a) Record the January transactions in a sales journal, a single-column purchases journal, a cash receipts journal as shown , a cash payments journal as shown , and a two-column general journal.

(b) Post the journals to the general ledger.

(c) Prepare a trial balance at January 31, 2012, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information.

1. Office supplies at January 31 total $900.
2. Insurance coverage expires on October 31, 2012.
3. Annual depreciation on the equipment is $1,500.
4. Interest of $50 has accrued on the note payable.

(d) Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January.

(e) Prepare and post adjusting and closing entries.

(f) Prepare a post-closing trial balance, and determine whether the subsidiary ledgers agree with the control accounts in the general ledger.

Reference no: EM1387542

Questions Cloud

Java application to display multiple choice questions : Write down the application which displays series of TEN(10) multiple choice questions: questions must cover all the Java. Each question must have four possible answers and only one answer must be correct.

Through better purchasing : through better purchasing, the cost of purchases was reduced to 43% of sales.

Does the non-coulomb electric field curl clockwise : does the non-Coulomb electric field curl clockwise.

Binomial distribution in an appropriate model : In each of the following cases, decide whether or not a binomial distribution is an appropriate model, and give your reasons.

Financial reporting and analysis : Prepare a trial balance at January 31, 2012, in the trial balance columns of the worksheet. Complete the worksheet using the following additional information and Prepare and post adjusting and closing entries.

Choose a product you would create and decide : choose a product you would create and decide whether you would take a slow or fast approach internationalizing your firm.

Special event nonprofit fundraiser : Critically discuss the three most important elements to a successful special event nonprofit fundraiser. Support your rationale as to why these are important considerations.

Determine the angle the string makes with vertical : A 7.90×10-2-{rm kg} toy airplane is tied to the ceiling with a string. While the airplane's motor is started, it moves with a constant speed of 1.20m/s in a horizontal circle of radius 0.50m.

What is a good reorder point : Ordering and holding costs are low, and you just lump them all into your overhead costs. What is a good reorder point?

User Account

All Pages