Engaged to audit the ferrick corporation

Assignment Help Accounting Basics

Reference no: EM131128659

You are engaged to audit the Ferrick Corporation for the year ended December 31, 2011. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2011, has been eliminated from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB'shipping point basis. You are to assume that all purchase invoices have been correctly recorded.

The following lists of sales invoices are entered in the sales journal for the months of December 2011 and January 2012, respectively.

	Sales Invoice Amount		Sales Invoice Date	Cost of Merchandise Sold		Date Shipped
December 2011

a.	$	3,000	Dec. 21	$	2,000	Dec. 31
b.		2,000	Dec. 31		800	Dec. 13
c.		1,000	Dec. 29		600	Dec. 30
d.		4,000	Dec. 31		2,400	Jan. 9
e.		10,000	Dec. 30		5,600	Dec. 29*
January 2012

f.	$	6,000	Dec. 31	$	4,000	Dec. 30
g.		4,000	Jan. 2		2,300	Jan. 2
h.		8,000	Jan. 3		5,500	Dec. 31
*Shipped to consignee.

Required:

Prepare necessary adjusting entries for the following events. (Omit the "$" sign in your response.)

Event	General Journal	Debit	Credit
a.	(Click to select) Accounts payable Common stock Cost of merchandise sold Accounts receivable Retained earnings Sales Cash Inventory
	(Click to select) Inventory Accounts receivable Retained earnings Accounts payable Cash Common stock Cost of merchandise sold Sales

d.	(Click to select) Inventory Common stock Retained earnings Sales Accounts payable Cash Cost of merchandise sold Accounts receivable
	(Click to select) Cash Inventory Accounts payable Sales Cost of merchandise sold Accounts receivable Common stock Retained earnings

e.	(Click to select) Common stock Sales Cost of merchandise sold Accounts receivable Accounts payable Inventory Cash Rent expense
	(Click to select) Rent expense Common stock Inventory Cash Sales Cost of merchandise sold Accounts payable Accounts receivable
	(Click to select) Common stock Rent expense Cost of merchandise sold Sales Accounts payable Cash Inventory Accounts receivable
	(Click to select) Sales Cash Rent expense Inventory Common stock Accounts payable Cost of merchandise sold Accounts receivable

f.	(Click to select) Cash Inventory Sales Cost of merchandise sold Accounts payable Retained earnings Accounts receivable Common stock
	(Click to select) Accounts receivable Inventory Cash Sales Cost of merchandise sold Accounts payable Retained earnings Common stock

h.	(Click to select) Rent expense Inventory Cash Depreciation expense Cost of merchandise sold Sales Common stock Accounts receivable
	(Click to select) Inventory Cost of merchandise sold Rent expense Depreciation expense Cash Sales Accounts receivable Common stock
	(Click to select) Inventory Sales Depreciation expense Accounts payable Cash Cost of merchandise sold Accounts receivable Prepaid rent
	(Click to select) Cost of merchandise sold Inventory Accounts receivable Cash Sales Prepaid rent Accounts payable Depreciation expense

Reference no: EM131128659

Questions Cloud

Regarding differences between goods and services : Which is not true regarding differences between goods and services?

Describe trends in the human service field : Describe trends in the human service field - Identify qualities of human service agencies associated with and that contribute to success.

Considering investing in its own transport fleet : Your company is considering investing in its own transport fleet. The present position is that carriage is contracted to an outside organization. The life of the transport fleet would be five years, after which time the vehicles would have to be d..

What is human resource management : What is human resource management? What is the primary function of human resource management? What is the role of human resource management in an organization's strategic plan?

Engaged to audit the ferrick corporation : You are engaged to audit the Ferrick Corporation for the year ended December 31, 2011. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2011, has been eliminated from inventory.

What are some methods for mitigating the hazards : Describe how noise and vibration hazards can affect the human body. What are some methods for mitigating these hazards? What would you tell plant management in terms of exposure to acetone and compliance with the PEL?

Current trend in operations management : Which of the following is not a current trend in operations management?

Determine the motor torque m which must be supplied : The power unit A of the tractor-scraper has a mass of 4 Mg with mass center at G1. The fully loaded trailer-scraper unit B has a mass of 24 Mg with mass center at G2. Positioning of the scraper is con- trolled by two hydraulic cylinders EF, one on..

Describing how four laws or u.s. supreme court decisions : Prepare a 900- to 1,050-word paper describing how four laws or U.S. Supreme Court decisions that your feel affected equal opportunity employment the most. Include: The name of the law or Supreme Court Case and The year the law was passed, or th..

User Account

All Pages