Comprehensive Accounting Problem
Stumble & Fall, Inc.
BUS 321 - Intermediate Accounting
Fall 2015 - Tad Miller
Instructions
This project is most easily completed in an Excel workbook with several worksheets.
You
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The first worksheet should be a cover sheet
Skip a line between journal entries
Account titles need to be the same on the chart of accounts, T-Accounts and
journal entries
 Accounts in Trial Balance and T-accounts should be arranged by account number
 There is only one General Journal (one set of T-accounts). All entries need to be
recorded in the same General Journal and posted to the same set of T-accounts.
 No late assignments.
Prepare journal entries to record each of the following transactions. You do not
need to write explanations below the journal entries.
2. Create T-accounts for each account in the chart of accounts and post each of the
journal entries to an existing T-account. I will provide an excel template to save
time.
3. Prepare an unadjusted trial balance
1.
Prepare adjusting journal entries. In addition to the information provided for
adjusting journal entries, review the transactions and review your unadjusted trial
balance for any other adjusting journal entries you may need to prepare.
5. Post each of the adjusting journal entries to the same T-accounts you previously
created.
6. Total the T-accounts prior to preparing the unadjusted trial balance.
7. Prepare an adjusted trial balance
4.
8.
Prepare the following financial statements, in good form
o Multistep income statement you do not need to distinguish between
selling expense and general & administrative expenses
o Statement of retained earnings
o Classified balance sheet
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101 · Cash
111 · Accounts receivable
119 · Allowance for uncollectible accounts
121 · Inventory
122 · Purchases
123 · Purchase discounts
124 · Purchase returns & allow
125 · Transportation in
131 · Investments
141 · Prepaid rent
151 · Supplies
171 · Equipment
179 · accumulated depreciation
201 · Accounts payable
211 · Interest payable
221 · Salaries payable
251 · Unearned revenue: gift certificates
256 · Unearned revenue: rent
261 · Notes payable
301 · Common stock
311 · Additional paid in capital
399 Retained earnings
401 · Sales
409 · Sales discount
501 · Cost of goods sold
511 · Bad debt expense
512 · Depreciation expense
513 · Rent expense
514 · Salary expense
515 · Supplies expense
591 · Rent revenue
599 · Interest expense
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Sept 1
Sept 1
Sept 1
Sept 2
Sept 3
Sept 4
Sept 4
Sept 5
Sept 9
Sept 11
Sept 12
Sept 20
Sept 20
Sept 22
Sept 23
Sept 24
Sept 25
Sept 26
Sept 29
Sept 29
Issued 10,000 shares of $1 par value common stock for $13 per share.
Borrowed $30,000 for Coast National Bank by issuing a $30,000 note due
in two years with 10% interest payable annually.
Purchased the assets of a distressed competitor for $75,000 in cash. The
assets consisted of inventory with an estimated market value of $80,000;
supplies worth $6,000 and equipment worth $14,000.
Paid rent on building for 12 months in advance, $7,200.
Purchased display equipment from Northern Supply for $10,000. Paid
$2,000 cash and the balance is to be paid with in 60 days.
Purchased merchandise on account from Quick Wholesale. Cost of the
merchandise was $44,100, terms were 1/20 n/45. We use the perpetual
inventory method.
Paid $1,800 for supplies.
Made a $25,000 credit sale to Ace Nursery, terms 2/10 n/30. Cost of
Goods Sold was $17,500.
Purchased merchandise costing $30,000 on account from Plants, Inc,
terms were 2/30 n/60. Paid trucking company $250 cash for freight
charges.
Received $11,760 cash of the amount due from Ace Nursery (in the
discount period)
Paid salaries totaling $3,000
Cash sales of $15,000 before the 2% sales discount. Cost of Goods Sold
was $10,500.
Received $300 for subleasing an office in the building for $300 per month.
Received $5,000 from the sale of gift certificates.
Paid the amount due to Quick Wholesale (in the discount period)
Purchased temporary investments at a cost of $3,600.
Returned defective merchandise costing $1,200 to Plants, Inc.
$24,000 sale to Best-Way, which paid $5,880 cash and the remaining
$18,000 was on account, terms 2/10 n/30. Cost of Goods Sold was
$16,800.
Purchased $6,000 of merchandise on account for Quick Wholesale, terms
1/20 n/45.
Cash sales (before any sales discount) of $18,000. Cost of Goods Sold was
$12,600.
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101 · Cash
111 · Accounts receivable
119 · Allowance for uncollectible accounts
121 · Inventory
122 · Purchases
123 · Purchase discounts
124 · Purchase returns & allow
125 · Transportation in
131 · Investments
141 · Prepaid rent
151 · Supplies
171 · Equipment
179 · accumulated depreciation
201 · Accounts payable
211 · Interest payable
221 · Salaries payable
251 · Unearned revenue: gift certificates
256 · Unearned revenue: rent
261 · Notes payable
301 · Common stock
311 · Additional paid in capital
399 Retained earnings
401 · Sales
409 · Sales discount
501 · Cost of goods sold
511 · Bad debt expense
512 · Depreciation expense
513 · Rent expense
514 · Salary expense
515 · Supplies expense
491 · Rent revenue
591 · Interest expense
Additional information
Our rent expense is $600 per month (not our sublease revenue)
Supplies used during Sept $1,300
Rent revenue earned during the last 10 days of September
Gift certificates redeemed - $3,500 with $2,450 Cost of Goods Sold
Interest expense on Bank Note
Salaries earned but not yet paid $2,500
Depreciation $341.67- 5-year life
Uncollectible accounts - $215 (estimate)
Ending inventory - $78,859
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