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katrin [286]
3 years ago
14

On December 31, 2019, the Income Statement section of the worksheet for Capeletti Distributors contained the following informati

on.
Income Statement Section Debit Credit
Income Summary $37,600 $40,900
Sales 249,500
Sales Returns and Allowances 3,400
Sales Discounts 2,400
Interest Income 120
Purchases 133,400
Freight In 1,700
Purchases Returns and Allowances 1,500
Purchases Discounts 1,430
Rent Expense 8,000
Utilities Expense 2,830
Telephone Expense 1,440
Salaries Expense 65,100
Payroll Taxes Expense 5,170
Supplies Expense 1,600
Depreciation Expense 2,000
Interest Expense 240
Totals $264,880 $293,450

Assume further that the owner of the firm is John Capeletti and that the John Capeletti, Drawing account had a balance of $25,700 on December 31, 2019.
Required:
Prepare the entries that should be made in the general journal to close the revenue, cost of goods sold, expense, and other temporary accounts.
Business
1 answer:
Yuliya22 [10]3 years ago
7 0

Explanation:

The closing journal entries are as follows

1. Sales $249,500

  Interest Income $120

  Purchases Returns and Allowances $1,500

  Purchases Discounts $1,430

                   To Income Summary $252,550

(Being revenue account closed)

2. Income summary A/c Dr $227,280

               To Sales Returns and Allowances $3,400

               To Sales Discounts $2,400

               To Purchases $133,400

               To Freight In $1,700

               To Rent Expense $8,000

               To Utilities Expense $2,830

               To Telephone Expense $1,440

               To Salaries Expense $65,100

               To Payroll Taxes Expense $5,170

               To Supplies Expense $1,600

               To Depreciation Expense $2,000

               To Interest Expense $240

(Being expenses accounts are closed)

3. Income summary A/c Dr $28,570

                 To John Capeletti, Capital $28,570

(Being the net income is closed)

The calculation is shown below:

= $40,900 + $252,550 - $227,280 - $37,600

= $28,570

4. John Capeletti, Capital $25,700

                 To John Capeletti, Drawings $25,700

(Being drawing account is closed)

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lukranit [14]

Answer:

$1,133,000

Explanation:

The computation of the cost of goods manufactured is shown below:

= Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory

where,

Direct material used is

= Opening balance of raw material + purchase made - ending balance of raw material

= $83,000 + $361,000 - $62,000

= $382,000

The manufacturing overhead is

= Indirect labor + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance

= $18,000 + $22,000 + $272,000

= $312,000

And, the other items would remain the same

So, the cost of goods manufactured is

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The following changes took place last year in Pavolik Company’s balance sheet accounts:
irinina [24]

Answer:

1. $260

2. $103

Explanation:

1. Calculation to determine the net cash provided by operating activities for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

Cash flow from operating activities

Net Income $100

Adjustments to reconcile net income to net cash provided by operating activities

Adjustment for non cash effects

Depreciation $82

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Gain on sale of investments -$25

Change in operating assets & liabilities

Increase in accounts receivable -$24

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Increase in prepaid expenses -$19

Increase in accounts payable $62

Decrease in accrued liabilities -$24

Increase in income taxes payable $29

Net cash flow from operating activities (a) $260

Therefore Using the indirect method the net cash provided by operating activities for the year is $260

2. Preparation of a statement of cash flows for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

$

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Cash Flow from Investing activities

Property,plant and equipment purchased -$395

Long term investment sold $46

Land sold $24

Net cash Flow from Investing activities (b) -$325

(-$395+$46+$24)

Cash Flow from Financing activities

Cash dividends paid -$18

Common stock purchased -$96

Bonds issued $204

Net cash Flow from Financing activities (c) $90

(+$204-$18-$96)

Net Change in cash c=a+b+c -$25

Beginning cash balance $128

Closing cash balance $103

($128-$25)

Therefore the statement of cash flows for the year is $103

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