Tennessee Valley Book Warehouse, Farmer Fudge Company’s

USA Ussays > Uncategorized > Tennessee Valley Book Warehouse, Farmer Fudge Company’s

Tennessee Valley Book Warehouse, Farmer Fudge Company’s

a. A count of supplies determines that Farmer has $1,200 dollars of supplies remaining which means $1,300 has been used.
b. Insurance expires at the rate of $200 per month.
c. Depreciation on equipment is $400 per month.
d. The loan accrues interest at the rate of $100 per month.
e. Farmer earns $4,000 of the $12,000 in unearned revenue
f. Farmer earns $1200 of Revenue that is billed but not yet paid. (Use Accounts Receivable for the Debit.)
FARMER FUDGE COMPANY
Worksheet
For the Month Ended March 31, 20XX
Trial Balance Adjustments Adj. Trial Bal Income Stmt Balance Sheet
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
Cash 19,800
Accounts Receivable 9,200
Supplies 2,500
Prepaid Insurance 2,400
Equipment 24,000
Accounts Payable 3,500
Notes Payable 15,000
Unearned Service Rev 12,000
Owners Capital 24,800
Owners Drawing 2,400
Service Revenue 13,400
Salaries and Wages Exp 6,400
Rent Expense 1,200
Utilities Expense 800
Totals 68,700 68,700
Please complete
http://cdncache1-a.akamaihd.net/items/it/img/arrow-10x10.png

the fourclosing journal entries from the information in the worksheet above. Please prepare the entries in good form in the space provided below.
Account Debit Credit

 

1. Tennessee Valley Book Warehouse (TVBW) distributes hardcover books to retail stores and extends credit terms of 2/10, n/30toall of its customers. At the end of March, TVBW’s inventory consisted of books purchased for $18,000. During April, the following merchandising transactions took place:
a. April 1 – Purchased books on account for $7,600 from River Publishers, FOB destination terms 2/20, n/30. The appropriate party also made thecash payment in the amount of $50 for the freight on this date.
Account Debit Credit
a. April 4 – Sold books on account to the Reader’s Shoppe for $11,200. The cost of the books sold was $6,850.
Account Debit Credit
a. April 5 – Received $700 credit for book returned to River Publishers.
Account Debit Credit
a. April 10 – Paid River Publishers in full less discount.
Account Debit Credit
a. April 13 – Received payment in full from the Reader’s Shoppe.
Account Debit Credit
a. April 27 – Sold books on account to the Roane Reader for $3,850. The cost of the books sold was $1,925.
Account Debit Credit
a. April 30 – Granted Roane Reader $200 credit for books returned costing $100.
Account Debit Credit