A02E Assignment 04 Principles of Accounting I.DOCX

A02E Assignment 04 Principles of Accounting I

Directions:  Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.

Part A (40 points)

Use the following information to complete the partial worksheet for Bill's Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns.

Merchandise inventory—ending                                $10

Store supplies on hand                                                3

Depreciation on store equipment                                2

Accrued salaries                                                          1

Bill’s Company

Partial Worksheet

For the Year Ended December 31st, 2012
Account Titles
Trial Balance
Adjustments
Adjusted Trial Balance
 
Debit
Credit
Debit
Credit
Debit
Credit
Merchandise Inv.
16
Store Supplies
10
Store Equipment
20
 
Accum. Depr. Store Equip.
6

Salaries Payable
Income Summary
 
Salary Expense
10
Depreciation Expense

Store Supplies Exp.
 
Part B (15 points each for a possible total of 60 points)

The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use.

June 16 purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 10, n/30. Transportation terms F.O.B destination.

June 16 purchased merchandise having a price of $9,000 from the Ajax Supply House on account with credit terms 2/10, n/30. Transportation terms F.O.B shipping point. The freight costs were $175.

June 17 received the goods from Shelby.

June 17 received the goods from Ajax.

June 20 Returned for credit merchandise with an invoice price of $800 to Ajax.

June 25 Paid Shelby the amount owed.

June 28 Paid Ajax the amount owed.

June 30 Returned for cash, merchandise with an invoice price of $400 to Shelby.

(1)    Prepare the necessary general journal entry for June 16, Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 2/10, n/30. Transportation terms F.O.B destination.

__________________________________________           __________        __________

__________________________________________           __________        __________

__________________________________________           __________        __________

(2)    Prepare the necessary general journal entry for June 17, Received the goods from Shelby.

__________________________________________           __________        __________

__________________________________________           __________        __________

__________________________________________           __________        __________

(3)    Prepare the necessary general journal entry for June 25.

__________________________________________           __________        __________

__________________________________________           __________        __________

__________________________________________           __________        __________

 

(4)    Prepare the necessary general journal entry for June 28.

__________________________________________           __________        __________

__________________________________________           __________        __________

__________________________________________           __________        __________

 

 
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