Problem
Set up following T - Accounts
Cash
Accounts Receivable
Shoe Inventory
Supplies
Auto
Accumulated Depreciation - Auto
Accounts Payable
JHJ Common Stock
JHJ Retained Earnings
JHJ Dividends
Shoe Sales
Cost of Shoes Sold
Rent Expense
Supplies Expense
Depreciation Expense
Journalize the following transactions utilizing WEIGHTED AVERAGE inventory valuation method.
Invested additional $200,000 in business.
Purchased shoes on account for inventory, 20,000 @ $30 each
Paid rent expense, $10,000.
Purchased supplies, $50,000.
Purchased shoes on account, 50,000 pairs @ 40 each.
Cash sales, $800,000 (30,000 pairs of shoes).
Credit sales, $1,200,000 (40,000 pairs of shoes).
Paid on accounts payable, $1,500,000.
Received cash from credit customers, $1,200,000.
Ending supplies, $10,000.
Paid dividends, $20,000.
Journalize the adjusting entry for auto utilizing Double Declining Balance method of Depreciation, 4-year life with salvage value of $3,000, year Required:
Journalize all entries
Post all entries to ledger.
Prepare trial balance
Prepare income statement
Prepare statement of retained earnings
Prepare balance sheet
Prepare cash flow statement
Prepare closing entries and statement of cash flow.