Question

Problem 3-ZUA Part I Comprehensive Problem: Reviewing the Accounting Cycle Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning of 2019, the following account balances were available: Cash $92,100 Accumulated Depreciation Accounts receivable 361,500 (Equipment) $580,000 Supplies 24,600 Land 304,975 Prepaid Advertising 2,000 Accounts Payable 17,600 Building 2,190,000 Wages Payable 30,200 Accumulated Depreciation Notes Payable (due in 2023) 1,000,000 (Building) 280,000 Common Shares 1,400,000 Equipment 795,000 Retained Earnings, 12/31/2018 462,375 During 2019 the following transactions occurred: a. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838. b. There remains $286,172 of accounts receivable to be collected at December 31, 2019. c. Tarkington purchased advertising of $138,100 during 2019 and debited the amount to prepaid advertising. d. Supplies of $27,200 were purchased on credit and debited to the supplies account. e. Accounts payable at the beginning of 2019 were paid early in 2019. There remains $5,600 of accounts payable unpaid at year end. f. Wages payable at the beginning of 2019 were paid early in 2019. Wages were earned and paid during 2019 in the amount of $666,142. g. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use. h. One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2019. i. Property taxes were paid on the land and buildings in the amount of $170,000. j. Dividends were declared and paid in the amount of $25,000. Required: 1a. Post the beginning balances and the transactions a-j to the following T-accounts. Note: If a T-accounts isn't needed, leave it blank.

Answer 1

Con = November (Autosaved) - Microsoft Excel - 0 X Insert Page Layout Formulas Data Review View Home * Cut Tahoma B I - 11 - - A A -A = = = E D EFF Wrap Text Merge & Center - Custom - % E Eg Copy DA } D I AutoSum " A A Paste U - , $8.99 Cell Styles Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Painter Clipboard A31 - Clear Sort & Find & Filter Select Editing Alignment Number Cells Font fx DE F Factory payroll RM- Apr 30 RM Purchases Ray Materials $ 49,000.00 $ 18,000.00 Indirect Material $ 1,96,000.00 $ 1,93,000.00 DMUsed Factory payroll 1,50,000.00 $ 34,500.00 Indirect Labour $ 1,15,500.00 DL used RM - May 31 $ 34,000.00 8 10 11 Finished goods Cost of goods manfactured FG-Apr 30 Cost of goods manfactured 54,000.00 3,61,525.00 $ 3,80,925.00 Cost of goods sold Work in process 9,200.00 $ 3,61,525.00 1,93,000.00 1,15,500.00 63,525.00 12 13 14 15 16 $ Wip - Apr 30 DM used Dlused Overhead applied $ $ $ $ FG-May 31 34,600.00 17 18 WIP-May 31 19 20 Computation of under or overapplied Oh 21 Note: 22 1Cost of DM used: 23 Beginning RM inventory 24 Add: purchases 25 Raw material available for use 26 less: ending RM inventory 27 Total Rm used 28 Less: Indirect material used 29 cost of DM used $ 49,000.00 $ 1,96,000.00 $ 2,45,000.00 $ (34,000.00) $ 2.11,000.00 2]Cost of goods manfactured Beginning WIP inventory Add: Dm Add: DL Add: OH applied (55% of DL) Total cost of wip Less: ending WIP Cost of goods manfactured $ 9,200.00 $ 193,000.00 $ 1,15,500.00 $ 63,525.00 $ 3,81,225.00 $ (19,700.00) $ 3,61,525.00 Indirect material Indirect labour other oh costs Total actual OH overhead applied $ 22,700.00 $ 26,700.00 $ 1,57,400.00 $ 2,06,800.00 $ 2,13,500.00 $ 1,93,000.00 Over Applied Overhead $ (6,700.00) Note: If Overhead applied is higher than the actual overhead amount then it is considered as overapplied overhead Option[e] is correct 38 Sheet487 Sheet90 Sheet92 Sheet91 Sheet133 Sheet132 Sheet690 Sheet689 Sheet827 Sheet274 Sheet115 | HEN Ready Sheet284 Circular References BO 70% + + 18:43 Type here to search o Bi e a E - 9 CH ^ o ENG 0 29-02-2020 W