World Boards Co. is a merchandising business. The account balances for World Boards Co. as of March 1, 2008 (unless otherwise indicated), are as follows: 110 Cash $ 21,200 112 Accounts Receivable 51,300 115 Merchandise Inventory 200,800 116 Prepaid Insurance 5,600 117 Store Supplies 3,800 123 Store Equipment 156,500 124 Accumulated Depreciation—Store Equipment 18,900 210 Accounts Payable 32,200 211 Salaries Payable — 310 Evan Raskind, Capital, April 1, 2007 185,100 311 Evan Raskind, Drawing 45,000 312 Income Summary — 410 Sales 1,073,700 411 Sales Returns and Allowances 30,900 412 Sales Discounts 19,800 510 Cost of Merchandise Sold 541,000 520 Sales Salaries Expense 111,600 521 Advertising Expense 27,000 522 Depreciation Expense — 523 Store Supplies Expense — 529 Miscellaneous Selling Expense 4,200 530 Office Salaries Expense 60,700 531 Rent Expense 27,900 532 Insurance Expense — 539 Miscellaneous Administrative Expense 2,600 During March, the last month of the fiscal year, the following transactions were completed: Mar. 1 Paid rent for March, $2,400. 3 Purchased merchandise on account from Huisman Co., terms 2/10, n/30, FOB shipping point, $21,600. 4 Paid transportation charges on purchase of March 3, $500. 6 Sold merchandise on account to Hillcrest Co., terms 2/10, n/30, FOB shipping point, $8,500. The cost of the merchandise sold was $5,000. 7 Received $8,900 cash from Foley Co. on account, no discount. 10 Sold merchandise for cash, $27,200. The cost of the merchandise sold was $16,000.00 13 Paid for merchandise purchased on March 3, less discount. 14 Received merchandise returned on sale of March 6, $1,500. The cost of the merchandise returned was $900. 15 Paid advertising expense for last half of March, $2,600. 16 Received cash from sale of March 6, less return of March 14 and discount. 19 Purchased merchandise for cash, $11,800. 19 Paid $9,000 to Bakke Co. on account, no discount. 20 Sold merchandise on account to Wilts Co., terms 1/10, n/30, FOB shipping point, $22,300. The cost of the merchandise sold was $13,200. 21 For the convenience of the customer, paid shipping charges on sale of March 20, $1,100.00 21 Received $17,600 cash from Owen Co. on account, no discount. 21 Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination, $19,900.00 24 Returned $2,000 of damaged merchandise purchased on March 21, receiving credit from the seller. 26 Refunded cash on sales made for cash, $1,200. The cost of the merchandise returned was $700. 28 Paid sales salaries of $7,600 and office salaries of $4,800. 29 Purchased store supplies for cash, $800. 30 Sold merchandise on account to Whitetail 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 March 20, less discount, plus transportation paid on March 21. 31 Paid for purchase of March 21, less return of March 24 and discount. Instructions 1. 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 March. 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 March, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). a. Merchandise inventory on March 31 $196,139 b. Insurance expired during the year 1,875 c. Store supplies on hand on March 31 1,500 d. Depreciation for the current year 9,500 e. Accrued salaries on March 31: Sales salaries $1,200 Office salaries 800 2,000 5. Optional: Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. See Appendix C for how to prepare an end-of-period spreadsheet (work sheet) for a merchandising business. 6. Journalize and post the adjusting entries. 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. 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 trial balance.

World Boards Co. is a merchandising business. The account balances for World Boards Co. as of March 1, 2008 (unless otherwise indicated), are as follows: 110 Cash $ 21,200 112 Accounts Receivable...

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World Boards Co. is a merchandising business. The account balances for World Boards Co. as of March 1, 2008 (unless otherwise indicated), are as follows:

110	Cash	$ 21,200
112	Accounts Receivable	51,300
115	Merchandise Inventory	200,800
116	Prepaid Insurance	5,600
117	Store Supplies	3,800
123	Store Equipment	156,500
124	Accumulated Depreciation—Store Equipment	18,900
210	Accounts Payable	32,200
211	Salaries Payable	—
310	Evan Raskind, Capital, April 1, 2007	185,100
311	Evan Raskind, Drawing	45,000
312	Income Summary	—
410	Sales	1,073,700
411	Sales Returns and Allowances	30,900
412	Sales Discounts	19,800
510	Cost of Merchandise Sold	541,000
520	Sales Salaries Expense	111,600
521	Advertising Expense	27,000
522	Depreciation Expense	—
523	Store Supplies Expense	—
529	Miscellaneous Selling Expense	4,200
530	Office Salaries Expense	60,700
531	Rent Expense	27,900
532	Insurance Expense	—
539	Miscellaneous Administrative Expense	2,600

During March, the last month of the fiscal year, the following transactions were completed:

Mar.	1	Paid rent for March, $2,400.
	3	Purchased merchandise on account from Huisman Co., terms 2/10, n/30, FOB
		shipping point, $21,600.
	4	Paid transportation charges on purchase of March 3, $500.
	6	Sold merchandise on account to Hillcrest Co., terms 2/10, n/30, FOB shipping
		point, $8,500. The cost of the merchandise sold was $5,000.
	7	Received $8,900 cash from Foley Co. on account, no discount.
	10	Sold merchandise for cash, $27,200. The cost of the merchandise sold was $16,000.00
	13	Paid for merchandise purchased on March 3, less discount.
	14	Received merchandise returned on sale of March 6, $1,500. The cost of the merchandise
		returned was $900.
	15	Paid advertising expense for last half of March, $2,600.
	16	Received cash from sale of March 6, less return of March 14 and discount.
	19	Purchased merchandise for cash, $11,800.
	19	Paid $9,000 to Bakke Co. on account, no discount.
	20	Sold merchandise on account to Wilts Co., terms 1/10, n/30, FOB shipping
		point, $22,300. The cost of the merchandise sold was $13,200.
	21	For the convenience of the customer, paid shipping charges on sale of March 20, $1,100.00
	21	Received $17,600 cash from Owen Co. on account, no discount.
	21	Purchased merchandise on account from Nye Co., terms 1/10, n/30, FOB destination,
		$19,900.00
	24	Returned $2,000 of damaged merchandise purchased on March 21, receiving
		credit from the seller.
	26	Refunded cash on sales made for cash, $1,200. The cost of the merchandise
		returned was $700.
	28	Paid sales salaries of $7,600 and office salaries of $4,800.
	29	Purchased store supplies for cash, $800.
	30	Sold merchandise on account to Whitetail 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 March 20, less discount, plus transportation paid on March 21.
	31	Paid for purchase of March 21, less return of March 24 and discount.

Instructions

1. 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 March.

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 March, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6).

a.	Merchandise inventory on March 31		$196,139
b.	Insurance expired during the year		1,875
c.	Store supplies on hand on March 31		1,500
d.	Depreciation for the current year		9,500
e.	Accrued salaries on March 31:
	Sales salaries	$1,200
	Office salaries	800	2,000

5. Optional: Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. See Appendix C for how to prepare an end-of-period spreadsheet (work sheet) for a merchandising business.

6. Journalize and post the adjusting entries.

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. 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 trial balance.

Answered Same Day Dec 24, 2021

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Robert answered on Dec 24 2021

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World Boards Co. is a merchandising business. The account balances for World Boards Co. as of March 1, 2008 (unless otherwise indicated), are as follows: 110 Cash $ 21,200 112 Accounts Receivable...

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