Reference no: EM131582833

Assignment

 

Question 1: Apachi Company ended its fiscal year on July 31, 2010. The company's adjusted trial balance as of the end of its fiscal year is as shown below.

 

APACHI COMPANY Adjusted Trial Balance July 31, 2010
No.	Account Titles	Debits	Credits
101	Cash	$14,840
112	Accounts Receivable	8,780
157	Equipment	15,900
167	Accumulated Depreciation		$7,400
201	Accounts Payable		4,220
208	Unearned Rent Revenue		1,800
301	B. J. Apachi, Capital		45,200
306	B. J. Apachi, Drawing	16,000
404	Commission Revenue		65,000
429	Rent Revenue		6,500
711	Depreciation Expense	4,000
720	Salaries Expense	55,700
732	Utilities Expense	14,900
		$130,120	$130,120

 

Instructions

 

(a) Prepare the closing entries.

 

Question 2: On September 1, Howe Office Supply had an inventory of 30 pocket calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.

 

Sept. 6 Purchased 80 calculators at $20 each from De Vito Co. for cash.
9 Paid freight of $80 on calculators purchased from De Vito Co.
10 Returned 2 calculators to De Vito Co. for a $42 credit (including freight) because they did not meet specifications.
12 Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30.
14 Granted credit of $31 Mega Book Store for the return of one calculator that was not ordered.
20 Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30.

Instructions

Journalize the September transactions.