P5-1A Ready-Set-Go, Ltd.

distributes suitcases to retail stores and extends credit terms of

1/10, n/30 to all of its customers. At the end of June, Ready-Set-Go’s inventory consisted of
suitcases costing £1,200. During the month of July, the following merchandising trans_xFFFE_actions occ

Date Account
July 1
Inventory
Account Payable
Freight payment
Cash
3
Account Receivable
Sales Revenue
Cost of Goods Sold
Inventory
9
Account Payable
Discount
Cash
12
Cash
Sales Return and Allowance
Account Receivable
17
Account Receivable
Sales Revenue
Cost of Goods Sold
Inventory
18 Inventory
Account Payable

freight payment
Cash
20
Account Payable
Inventory
freight payment
21 Cas
Sales and Allowance
Account Receivable

22 Account Receivable
Sales Revenue

Cost of Goods Sold

Inventory
30
Account Payable
Cash
31
Sales and Allowance
Account Receivable
31
Sales and Allowance
Account Receivable
Inventory
Cost of Goods Sold
 consisted of P5-3A Starz Department Store, Ltd. is located near th
g trans_xFFFE_actions occurred. of the company’s calendar year on December
two of its trial balances

Debit Kredit
£1,620 a) Start Departemen Store
£1,620 Income Statement
£100
£100 Revenue
£2,200 Sales Revenue
£2,200 Sales Return and Allowance
£1,400 Interest revenue
£1,400 Cost of Goods Sold
£1,620
32.4
1587.6 Expense
2178 Depreciation Expense
22
Insurance Expense
£2,200 Interest Expense
£1,400 Property Tax Expense
£1,400 Salaries and Wages Expense
£1,030 Sales Commissions Expense
£1,030 Utilities Expense
£1,900
£1,900
£125 Net Income
£125
£300 Start Departemen Store
175 Retained earnings
125 Retained earnings, Januari
1386 Add: Net income
14
£1,400 Less: Divident
£2,400 Retained earnings, December
£2,400
£1,350
£1,350
£1,600 Start Departemen Store
£1,600 Statement Financial Position
£200 Asset
£200
£200
£200 Cash
£120 Account Receivable
£120 Inventory
Building
Accumulated Depreciation-building

Equipment
Accumulated Dereciation- Equipment

Prepaid Insurance
Total Asset

Liabilities and Equity

Account Payable
Interest Payable
Mortgage payable
Property Tax Payable
Sales Commisions Payable
Share Capital-Ordinary
Mortgage payable due next year
Total
ore, Ltd. is located near the Towne Shopping Mall. At the end
endar year on December 31, 2017, the following accounts appeared in

Departemen Store b) Adjusting Entrie

ome Statement Date Account
Dec 31 Depreciation expense
Acc.depr -Building
Acc. Depr-Equipment
724000
-8000 Insurance expense
4000 Prepaid insurance
-412700 Property Tax Expense
307300 Property Tax Payable
Interest expense
Interest Payable
23500 Sales Commissions Expense
7200 Sales Commissions Payable
8100 Utilities Expense
4800 Account Payable
105000
14500
12000
175100 c) Closing Entrie
No Account
132200 1 Sales Revenue
Income Summary
Departemen Store 2 Income Summary
tained earnings
64600 Depreciation Expense
Insurance Expense
132200 Interest Expense
196800 Property Tax Expense
24000 Salaries and Wages Expense
Sales Comm. Expense
172800 Utilities Expense

3
Income Summary
Retained earnings
Departemen Store 4
Retained earnings
ent Financial Position Divident
 23,800
50,300
75,000
290000
52500
237,500
110000
42700
67,300
2,400
456,300

77,300
5,100
80,000
4,800
4,300
112,000
16,000
299,500
 Adjusting Entrie
Account Debit Kredit
tion expense 23500
r -Building
pr-Equipment 10400
13100
expense 7200
aid insurance 7200
Tax Expense 4800
erty Tax Payable 4800
5100
terest expense
terest Payable 5100
mmissions Expense 4300
ommissions Payable 4300
tilities Expense 1000
ccount Payable 1000

Closing Entrie
ount Debit Kredit
307300
y 307300
175100

e 23500
7200
8100
e 4800
Expense 105000
e 14500
12000

196800
gs 196800
24000
24000