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Ocean Atlantic Co. is a merchandising business. The account balances for Ocean Atlantic Co. as of July 1, 2012 (unless otherwise indicated), are as follows:

Ocean Atlantic Co. is a merchandising business. The account balances for Ocean Atlantic Co. as of July 1, 2012 (unless otherwise indicated), are as follows:

 
Part 1: On your own paper, in the working papers, or using a spreadsheet, enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark (√) in the Posting Reference column. Journalize the transactions for July below.
During July, the last month of the fiscal year, the following transactions were completed:
July 1, Paid rent for July, $4000.
3, Purchased merchandise on account from Lingard Co., Terms 2/10,n/30,FOB shipping point, $25,000.
4, Paid freight on purchase of July 3, $1000.
6, Sold merchandise on account to Holt Co., terms 2/10,n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000.
7, Received $18000 cash from Flat Co. on account, no discount.
10, sold merchandise for cash $90,000. The cost of the merchandise sold was $50,000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $7000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $9000
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $22000.
19, Paid $23,100 to Corino Co. on account, no discount
Record the following transactions on page 21 of the journal
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. The cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB Destination, $32000.
24, Returned $5000 of damaged merchandise purchased on July21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $12000. The cost of the merchandise returned was $7200.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Dix co., terms 2/10, n/30, FOB shipping point, $18,750. The cost of the merchandise sold was $11,250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.

Part 2: Post the journal to the general ledger you created in Part 1, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers.
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".

Part 3:
NOTE:  You must complete parts 1 and 2 before completing part 3.
Prepare an unadjusted trial balance. If an amount box does not require an entry, leave it blank or enter "0".
Part 4 and 6:
Note: You must complete parts 1, 2 and 3 before attempting to complete part 4 and part 6. Part 5 is an optional work sheet.
4.  At the end of July, the following adjustment data were assembled. Analyze and use these data to complete Part 6.

 
6.  Journalize the adjusting entries. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0". Post the adjusting entries to the paper, work sheet, or spreadsheet you used in parts 1 and 2.
Part 5: Optional work sheet
Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet using the following adjustment data.

 
If an amount box does not require an entry, leave it blank or enter "0".
Part 7:
You must complete parts 1, 2, 3, 4 and 6 before completing part 7. Part 5 is the optional work sheet.
Prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank or enter "0".
Part 8:
You must complete parts 1, 2, 3, 4, 6 and 7 before attempting to complete part 8.
Note: part 5 is optional.
 
1.  Prepare an income statement.
2.  Prepare a statement of owner's equity.
3.  Prepare a balance sheet.
Part 9:
You must complete parts 1, 2, 3, 4, 6, 7 and 8 before attempting to complete part 9. Part 5 is optional.
Journalize the closing entries. Then post the journal to the general ledger you created in part 1. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry. Insert the new balance in the owner's capital account.
If an amount box does not require an entry, leave it blank or enter "0".
Part 10:
You must complete parts 1, 2, 3, 4, 6, 7, 8 and 9 before attempting to complete part 10. Part 5 is optional.
Prepare a post-closing trial balance. If an amount box does not require an entry, leave it blank or enter "0".


                                       


quote
now( & 2 attachments).
attachments
 Ocean_Atl.docx (106KB)  
 working.xlsx (11KB)  

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