Accounting help, needs to be done tomorrow by 9pm. Anyone?
Problem 5-3A Preparing adjusting entries and income statements; and computing gross margin, acid-test, and current ratios L.O. A1, A2, P3, P4
[The following information applies to the questions displayed below.]
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The following unadjusted trial balance is prepared at fiscal year-end for Rex Company. |
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REX COMPANY |
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Debit |
Credit |
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Cash |
$ |
2,200 |
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Merchandise inventory |
11,500 |
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Store supplies |
4,800 |
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Prepaid insurance |
2,300 |
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Store equipment |
41,900 |
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Accumulated depreciation—Store equipment |
$ |
15,000 |
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Accounts payable |
9,000 |
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T. Rex, Capital |
32,000 |
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T. Rex, Withdrawals |
2,000 |
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Sales |
104,000 |
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Sales discounts |
1,000 |
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Sales returns and allowances |
2,000 |
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Cost of goods sold |
37,400 |
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Depreciation expense—Store equipment |
0 |
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Salaries expense |
31,000 |
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Insurance expense |
0 |
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Rent expense |
14,000 |
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Store supplies expense |
0 |
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Advertising expense |
9,900 |
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Totals |
$ |
160,000 |
$ |
160,000 |
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Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual inventory system. |
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a. |
Store supplies still available at fiscal year-end amount to $1,650. |
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b. |
Expired insurance, an administrative expense, for the fiscal year is $1,500. |
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c. |
Depreciation expense on store equipment, a selling expense, is $1,400 for the fiscal year. |
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d. |
To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,100 of inventory is still available at fiscal year-end. |
Problem 5-3A Part 1
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Required: |
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1. |
Using the above information prepare adjusting journal entries (Omit the “$” sign in your response): |
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General Journal |
Debit |
Credit |
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a. |
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[removed] |
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[removed] |
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b. |
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[removed] |
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[removed] |
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c. |
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[removed] |
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[removed] |
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d. |
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[removed] |
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[removed] |
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Problem 5-3A Part 2
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2. |
Prepare a multiple-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
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REX COMPANY |
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$ [removed] |
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$ [removed] |
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[removed] |
[removed] |
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[removed] |
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[removed] |
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[removed] |
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Expenses |
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Selling expenses |
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[removed] |
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[removed] |
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[removed] |
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[removed] |
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[removed] |
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Total selling expenses |
[removed] |
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General and administrative expenses |
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[removed] |
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[removed] |
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[removed] |
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Total general and administrative expenses |
[removed] |
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Total expenses |
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[removed] |
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$ [removed] |
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Problem 5-3A Part 3
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3. |
Prepare a single-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
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REX COMPANY |
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$ [removed] |
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Expenses |
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$ [removed] |
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[removed] |
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[removed] |
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Total expenses |
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[removed] |
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$ [removed] |
Problem 5-3A Part 4
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4. |
Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2011. (Round your answers to 2 decimal places.) |
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Current ratio |
[removed] |
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Acid-test ratio |
[removed] |
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Gross margin ratio |
[removed] |
Problem 5-4A Computing merchandising amounts and formatting income statements L.O. C2, P4
[The following information applies to the questions displayed below.]
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BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows. |
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Debit |
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Credit |
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Merchandise inventory |
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$ |
31,000 |
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Other (noninventory) assets |
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120,400 |
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Total liabilities |
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$ |
35,000 |
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N. Kidman, Capital |
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101,650 |
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N. Kidman, Withdrawals |
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8,000 |
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Sales |
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212,000 |
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Sales discounts |
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3,250 |
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Sales returns and allowances |
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14,000 |
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Cost of goods sold |
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82,600 |
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Sales salaries expense |
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29,000 |
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Rent expense—Selling space |
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10,000 |
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Store supplies expense |
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2,500 |
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Advertising expense |
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18,000 |
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Office salaries expense |
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26,500 |
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Rent expense—Office space |
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2,600 |
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Office supplies expense |
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800 |
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Totals |
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$ |
348,650 |
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$ |
348,650 |
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On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs. |
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Invoice cost of merchandise purchases |
$ |
91,000 |
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Purchase discounts received |
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1,900 |
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Purchase returns and allowances |
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4,400 |
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Costs of transportation-in |
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3,900 |
Problem 5-4A Part 1
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Required: |
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1. |
Compute the company’s net sales for the year. (Omit the “$” sign in your response.) |
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Net sales |
$ [removed] |
Problem 5-4A Part 2
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2. |
Compute the company’s total cost of merchandise purchased for the year. (Omit the “$” sign in your response.) |
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Total cost of merchandise purchased |
$ [removed] |
Problem 5-4A Part 3
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3. |
Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.) |
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BIZKID COMPANY |
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$ [removed] |
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$ [removed] |
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[removed] |
[removed] |
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[removed] |
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[removed] |
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[removed] |
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Expenses |
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Selling expenses |
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[removed] |
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[removed] |
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[removed] |
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[removed] |
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Total selling expenses |
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[removed] |
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General and administrative expenses |
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[removed] |
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[removed] |
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[removed] |
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Total general and administrative expenses |
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[removed] |
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Total expenses |
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[removed] |
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$ [removed] |
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Problem 5-4A Part 4
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4. |
Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.) |
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BIZKID COMPANY |
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$ [removed] |
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Expenses |
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$ [removed] |
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[removed] |
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[removed] |
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Total expenses |
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[removed] |
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$ [removed] |
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