Completing a merchandiser’s accounting cycle.
The end-of-month trial balance of St. James technology at January 31, 2011, follows;
ST. JAMES TECHNOLOGY
January 31, 2011
Cash $ 16,430
Account receivable 19,090
Accumulated Depreciation building $ 36,000
Accumulated. Depreciation furniture 5,800
Accounts payable 28,300
Unearned sale rev. 6,560
Note payable long term 87,000
James, capital 144,980
James, withdrawals 9,200
Sales revenue 187,970
Sales discounts 7,300
Sales return &allowances 8,140
Cost of good sold 103,000
Selling expense 21,520
General expense 10,060
total $496,610 $496,610
Additional data at January 31, 2011
A. Supplies consumed during the month, $1,500. Half is selling expenses, and the other half is general expense.
B. Depreciation for the month: building, $4,000; furniture, $4,800. one-fourth of depreciation is selling expense, and three-fourths is general expense.
C. Unearned sales revenue earned during January, $4,580
D. Accrued salaries, a general expenses, $1,150
E. Inventory on hand, $63,720. St. James uses the perpetual inventory system
1. Using four-column accounts open the accounts listed on the trial balance, inserting their unadjusted balances. Date the balances of the following accounts January 1: supplies; building; Accumulated depreciation-building; furniture; Accumulated depreciation –furniture; unearned sales revenue; James capital. Date the balance of James, withdrawals, January 31.Also open the income summary account.
2. Enter the trial balance on an accounting work sheet, and complete the work sheet for the month ended January 31, 2011. St. James technology groups all operating expenses under two accounts, selling expenses and general expense. Leave two blank lines under selling expense and three blank lines under general expense.
3. Prepare the company’s multi-step income statement and statement of owner’s equity for the month ended January 31, 2011,also prepare the balance sheet at that date in report form.
4. Journalize the adjusting and closing entries at January 31.
5. post the adjusting and closing entries, using dates