PROBLEM
Le Bere Office Supplies Company
Work Sheet
For the Year Ended September 30, 19x4
|
Account Name
|
Trial Balance
|
Adjustments
|
Income Statement
|
Balance Sheet
|
|
Debit
|
Credit
|
Debit
|
Credit
|
Debit
|
Credit
|
Debit
|
Credit
|
|
Cash
Accounts Receivable
|
21,150'
74,490
|
|
|
|
|
|
21,150
74,490
|
|
|
Merchandise Inventory
|
214,200
|
|
|
|
214,200
|
266,700
|
266,700
|
|
|
Store Supplies
|
11,400
|
|
|
(a) 9,750
|
|
|
1,650
|
|
|
Prepaid Insurance
|
14,400
|
|
|
(b) 7,200
|
|
|
7,200
|
|
|
Store Equipment
|
253,900
|
|
|
|
|
|
253,900
|
|
|
Accumulated Depreciation Store Equipment
|
|
76,500
|
|
(c) 15,000
|
|
|
|
91,500
|
|
Accounts Payable
|
|
116,850
|
|
(e) 300
|
|
|
|
117,150
|
|
Grace Le Bere, Capital
|
|
484,050
|
|
|
|
|
|
484,050
|
|
Grace Le Bere, Withdrawals
|
72,000
|
|
|
|
|
|
72,000
|
|
|
Sales
|
|
1,225,750
|
|
|
|
1,225,750
|
|
|
|
Sales Returns and
Allowances
|
25,440
|
|
|
|
25,440
|
|
|
|
|
Purchases
|
754,800
|
|
|
|
754,800
|
|
|
|
|
Purchases Returns and Allowances
|
|
18,150
|
|
|
|
18,150
|
|
|
|
FreisEht In
|
31,200
|
|
|
|
31,200
|
|
|
|
|
Sales Salaries Expense
|
193,800
|
|
(d) 1,950
|
|
195,750
|
|
|
|
|
Rent Expense
|
144,000
|
|
|
|
144,000
|
|
|
|
|
Other Selling Expenses
|
98,730
|
|
|
|
98,730
|
|
|
|
|
Utilities Expense
|
11,790
|
|
(e) 300
|
|
12,090
|
|
|
|
|
|
L921,300
|
1,921,300
|
|
|
|
|
|
|
|
Store Supplies Expense
|
|
|
(a) 9,750
|
|
9,750
|
|
|
|
|
Insurance Expense
|
|
|
(b) 7,200
|
|
7,200
|
|
|
|
|
Depreciation Expense,
Store Equipment
|
|
|
(c) 15,000
|
|
15,000
|
|
|
|
|
Sales Salaries Payable
|
|
|
|
(d) 1,950
|
|
|
|
1,950
|
|
|
|
|
34,200
|
34,200
|
1,508,160
|
1,510,600
|
697,090
|
694,650
|
|
Net Income
|
|
|
|
|
|
|
|
|
1. Complete the totals in columns 5 through 8 of the worksheet.
2. Prepare a detailed Income Statement [see the format on page 281 (Exhibit 10) and 291 (Exhibit 16) of the textbook as an example]. Prepare both Exhibits for your quiz.
3. Compute 'the Gross Profit (GP) ratio and the Inventory Turnover. See pgs 340 - 344 (Chp 7). (a) GP =Net Sales - COGS (pages 265 & 282). GP ratio = "Gross Profit' / "Net Sales" .
4. Prepare the closing entries (assume periodic inventory). See pages 291 - 292. [ Bonus; 6 pts
NOTE: The Merchandise Inventory amounts in the Income Statement and Balance Sheet of the worksheet ; $214,200 (Beg Inv.) and $266,700 (End Inv). See pages 289-292 of textbook.