Ocean Atlantic Co is a merchandising business The

account bala
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:During July, the last month of the
fiscal year, the following transactions were completed: July 1. Paid rent for July, $4,000.3.
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, $1,000.6. 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 $18,000 cash from Flatt 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, $7,000. The cost of the merchandise returned was $4,500.15. Paid advertising expense
for last half of July, $9,000.16. Received cash from sale of July 6, less return of July 14 and
discount.19. Purchased merchandise for cash, $22,000.19. Paid $23,100 to Carino 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, $40,000. The
cost of the merchandise sold was $25,000.21. For the convenience of the customer, paid freight
on sale of July 20, $1,100.21. Received $17,600 cash from Owen Co. on account, no
discount.21. Purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB
destination, $32,000.July 24. Returned $5,000 of damaged merchandise purchased on July 21,
receiving credit from the seller.26. Refunded cash on sales made for cash, $12,000. The cost of
the merchandise returned was $7,200.28. Paid sales salaries of $22,800 and office salaries of
$15,200.29. Purchased store supplies for cash, $2,400.30. 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.Instructions1. 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 starting on Page 20 of the journal.2. Post the journal to the
general ledger, 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.3. Prepare an unadjusted trial balance.4. At
the end of July, the following adjustment data were assembled. Analyze and use these data to
complete (5) and (6).5. Optional: Enter the unadjusted trial balance on a 10-column end-of-
period spreadsheet (work sheet), and complete the spreadsheet.6. Journalize and post the
adjusting entries. Record the adjusting entries on Page 22 of the journal.7. Prepare an adjusted
trial balance.8. Prepare an income statement, a statement of owner’s equity, and a balance
sheet.9. Prepare and post the closing entries. Record the closing entries on Page 23 of the
journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the
closing entry. Insert the new balance in the owner’s capital account.10. Prepare a post-closing
trialbalance.
View Solution:
Ocean Atlantic Co is a merchandising business The account bala
SOLUTION-- http://expertanswer.online/downloads/ocean-atlantic-co-is-a-merchandising-
business-the-account-bala/

See Answer here expertanswer.online

 See Answer here expertanswer.online
Powered by TCPDF (www.tcpdf.org)