Question

1. The Accounting Cycle - During the period (8pts): Following is a complete list of accounts and account balances that appear in the general ledger as of August 1, 2020 for Flourish and Botts, Co. bookstore. Assume all accounts have their normal debit or credit balance.

Account:	Amount:		Account:	Amount:
Cash	$9,021		Common Stock	$84
Accounts Receivable (A/R)	$13,992		Additional Paid-In Capital	$6,408
Inventory	$4,033		Retained Earnings	$7,220
Prepaid Rent	$200		Sales Revenue	$0
Equipment	$7,200		Cost of Goods Sold	$0
Accumulated Depreciation-Equipment	$800		Wages Expense	$0
Accounts Payable (A/P)	$11,844		Interest Expense	$0
Deferred Revenue	$3,055		Depreciation Expense	$0
Interest Payable	$35		Rent Expense	$0
Notes Payable	$5,000

The following transactions were observed for August 2020:

Date:	Transaction:
8/3	Purchased merchandise inventory on account for $11,941
8/6	Sold merchandise inventory, which originally cost $13,088, to customers for $20,972. Customers paid $2,400 in cash, the remaining $18,572 was purchased by customers on account.
8/16	Paid $2,750 in cash to workers for work done in August.
8/20	Received $17,046 in cash payments from customers on their accounts receivable.
8/27	Paid creditors $14,635 in cash for accounts payable.

PART B (4pts): After recording the above transactions, calculate the ending balance that would appear on the August 31, 2020 unadjusted trial balance for Flourish and Botts for the following accounts. You must show your work, such as a formula or T-account used to arrive at your answer:

1. Cash
2. A/R
3. Inventory
4. A/P

Answer 1

Cr. Amount Date Particulars 01-Aug To, Balance B/d 06-Aug To, Cash Sales 20-Aug To, Accounts Receivable Cash Account Dr. Amount Date Particulars 9,021.00 16-Aug To, Wages Expense 2,400.00 27-Aug By, Accounts Payable 17,046.00 31-Aug By, Balance C/ 28,467.00 Cr. Amount 2,750.00 14,635.00 11,082.00 28,467.00 Date Particulars 01-Aug To, Balance B/d 06-Aug To, Credit Sales Accounts Receivable Dr. Amount Date Particulars 13,992.00 20-Aug By, Cash A/C 18,572.00 31-Aug By, Balance C/d 32,564.00 Cr. Amount 17,046.00 15,518.00 32,564.00 Trial Balance Particulars Dr. Amount Cash 11,082.00 Accounts Receivable (A/R) 15,518.00 Inventory 2,886.00 Prepaid Rent 200.00 Equipment 7,200.00 Accumulated Depreciation Accounts Payable (A/P) Deferred Revenue Interest Payable Notes Payable Common Stock Additional Paid-In Capital Retained Earnings Sales Revenue Cost of Goods Sold 13,088.00 Wages Expense 2,750.00 Interest Expense Depreciation Expense Rent Expense 52,724.00 800.00 9,150.00 3,055.00 35.00 5,000.00 84.00 6,408.00 7,220.00 20,972.00 Date Particulars 27-Aug To, Cash A/C 31-Aug To, Balance C/ Accounts Payable Dr. Amount Date Particulars 14,635.00 01-Aug By, Balance B/d 9,150.00 03-Aug By, Inventory 23,785.00 Cr. Amount 11,844.00 11,941.00 23,785.00 52,724.00 Date Particulars 01-Aug To, Balance B/d 03-Aug To, Accounts Payable Inventory Dr. Amount Date Particulars 4,033.00 06-Aug By, COGS 11,941.00 31-Aug By, Balance C/ 15,974.00 Cr. Amount 13,088.00 2,886.00 15,974.00