Question

Accounting 2301 Instructions and Information for the Case Requirements: 1) Using the information given below (Trial Balance as of Feb. 28), enter the beginning balances in the T- Accounts in the Accounting Records Package. On page 2 note the format of the Financial Statements that were produced based on the Trial Balance as of Feb. 28 (single step income statement and classified balance sheet). 2) Use the descriptions of the March transactions which are on page 3 to journalize all of the entries for March in the journal provided in the Accounting Records Package 3) Post each entry into the T-Accounts provided in the Accounting Records Package. When finished posting, calculate the account balance for each T-Account and enter the balance on the Unadjusted Trial Balance on the form provided. Then, use the information found on the bottom of page 3 and any account balance information that is needed to journalize and post the adjusting entries. Calculate each account balance. 4) Using the T-Account balances, create an Adjusted Trial Balance on the form provided in the Accounting Records Package. 5) Using the provided templates in the Accounting Records Package, prepare the: a. Income Statement b. Statement of Retained Earnings c. Balance Sheet 6) Write the four closing entries in the journal and post them to the T-Accounts and calculate the ending balance for each account. 7) Create the Post Closing Trial Balance on the form provided in the Accounting Records Package. a Trial Balance as of February 28, 2019 Debit Credit Cash 8,000 Accounts Receivable 2,000 Merchandise Inventory 7,000 Supplies 100 Prepaid Insurance Equipment 11,000 Accumulated Depreciation 6,000 Accounts Payable 290 Salaries Payable 50 Unearned Revenue Common Stock 10,000 Retained Earnings 7,760 Dividends 10,000 Sales Revenue 63,000 Sales Discounts 1,000 Cost of Goods Sold 29,000 Rent Expense 6,600 Salary Expense 8,200 Supplies Expense 1,200 Depreciation Expense 0 Insurance Expense 3,000 Totals 87,100 87,100 0 THỂ

Saw this posted but not for version (A).

The Accounting Records has many blanks for the template on the Journals, T-accounts,Unadjusted/ Trial balances... and more.

The Second page has Financial Statements, and the 3rd page has the transactions. Some answers are given to help as a guide. THIS IS VERSION A.

Answer 1

Solution of the above problem is as under:

Adjusted trial Balance

Trial Balance as of March 31,2019
Particulars	Debit ($)	Credit ($)
Cash	5654
Accounts Receivables	1000
Merchandise Inventory	11500
Supplies	1300
Prepaid Insurance	3300
Equipment	11000
Accumulated Depreciation		7000
Accounts Payable		440
Unearned Revenue		2500
Common Stock		10000
Retained Earnings		7760
Salary Payable		0
Dividend	12000
Sales Revenue		75800
Sales Discount	1256
Purchases Discount		210
Cost of Goods Sold	35000
Rent Expense	7400
Salary Expense	8700
Supplies Expense	1200
Depreciation Expense	1000
Insurance Expense	3300
Freight In	100
Total	103710	103710

Financial Statements
San Antonio Home Furnishings Company
Income Statement
For the Year Ended March 31,2019
Particulars	Working	Amount ($)
Sales Revenue	75800
Less: Sales Discounts	-1256
Net Sales		74544
Cost of Goods Sold		35000
Gross Profit		39544
Other Incomes:
Purchase Discount	210
Total Income		210
Expenses:
Rent Expenses	7400
Salary Expenses	8700
Supplies Expenses	1200
Depreciation Expenses	1000
Insurance Expenses	3300
Freight In	100
Total Expenses		21700
Net Income		18054

Journal Entries for the Month of March 2019
Date	Account Title and Explanation	Debit ($)	Credit ($)
Mar-01	Supplies A/c Dr.	900
	To Cash A/c		900
	(Being supplies purchased for cash)
Mar-01	Prepaid Insurance A/c Dr.	3600
	To Cash A/c		3600
	(Being insurance purchased valid upto Feb 28)
Mar-02	Rent Expenses A/c Dr.	800
	To Cash A/c		800
	(Being Rent Paid)
Mar-02	Supplies A/c Dr.	300
	To Accounts Payable		300
	(Being supplies purchased on account)
Mar-03	Cash A/c Dr.	1000
	To Accounts Receivable A/c		1000
	(Being cash received from customer)
Mar-04	Accounts Payable A/c Dr.	150
	To Cash A/c		150
	(Being amount paid to creditors)
Mar-06	Salary Expense A/c Dr	500
	Salaries Payable A/c Dr.	50
	To Cash A/c		550
	(Being salary paid,$50 belongs to the prior month)
Mar-07	Cash A/c Dr.	2500
	To Unearned Revenue A/c		2500
	(Being amount received in advance from customer)
Mar-08	Merchandise Inventory A/c Dr.	10500
	To Accounts Payable A/c		10500
	(Being merchandise purchased)
Mar-09	Freight In A/c Dr.	100
	To Cash A/c		100
	(Being freight paid)
Mar-09	Accounts Receivable A/c Dr.	12800
	To Sales Revenue A/c		12800
	(Being merchandise sold on account)
Mar-09	Cost of Goods Sold A/c Dr.	6000
	To Merchandise Inventory A/c		6000
	(Being COGS Recorded)
Mar-18	Cash A/c Dr.	12544
	Sales Discount A/c Dr	256
	To Accounts Receivable		12800
	(Being cheque received from customer less sales discount)
Mar-18	Accounts Payable A/c Dr	10500
	To Cash A/c		10290
	To Purchase Discount A/c		210
	(Being amount paid to supplier)
Mar-31	Dividend A/c Dr.	2000
	To Cash A/c		2000
	(Being dividend paid)
Adjustment Entry	Insurance Expense A/c Dr.	300
	To Prepaid Insurance A/c		300
	(Being one month insurance expense recorded)
Adjustment Entry	Depreciation Expenses A/c Dr.	1000
	To Accumulated Depreciation A/c		1000
	(Being depreciation on equipment recorded)