Answered Essay: The general ledger of Ziper storage Solution at December 22, 2017 is provided. Zips Stora

The general ledger of Ziper storage Solution at December 22, 2017 is provided. Zips Storage uses a perpetual inventory system.

Trial balance:

Debit Credit
Cash 39,970
Accounts Receivvable 27,900
Allowance for Uncollectible Account 100
Supplies 6000
Prepaid Insurance 12,000
Inventory 83,230
Equipment 36,000
Accumlated Depreciation 80,000
Accounts Payable 6,700
Notes Payable 10,000
Interest Payable
Common stock 100,000
Retained Earning 17,200
Dividends 2,000
Sales 1,009,300
Cost of goods Sold 803,000
Salaries Expense 100,000
Bad Debt Expense
Depreciation Expense, Equipment
Supplies Expense
Insurance Expense
Interest Expense
Operation Expense 36,000
Income Tax Expense 5,000
1,151,200 1,151,200
Net Income (Loss)

The follwing are the balance of the transaction for the month of Decenber:

December 22 Purcased inventory for $14,100 on account, terms 2/10, N/30.

December 24 Returned $600 of inventory purchased 12/22 due to a problem with the order.

December 27 Paid for the inventory purchased on 12/22.

December 28 Sold 600 storage bins at a price of $6 each with a cost of $5 per bin.

December 30 Wrote-off an account for a customer who declared bankruptcy, $1,100.

Required:

1. Record each of the summary transaction listed above.

2. Post the transactions to the accounts.

3. Complete the worksheet. Insurance expired during the year is $5,000. Supplies remaining on hand at the end of the year equal $2,000. Depreciation on the equipment of $2,000. Zips Storage Solution estimates the percentage of uncollectible account to be 30% of the receivables. The note payable is 6%, 2-year note dated 6/1/2016.

4. Journalize the necessary adjucting entries.

5. Post the adjusting entries.

6. Complete the income statement, statement of stockholder’s equity and classified balance sheet as of December 32, 2018.

7. Record the closing entries.

8. Post the closing entries.

9. Complete a post-closing trial balance.

Expert Answer

Solution:

1) Recording of summary transaction

Date General Journal Debit Credit
Dec.22 Inventory $14,100
Accounts Payable $14,100
Dec.24 Accounts Payable $600
   Inventory $600
Dec.27 Accounts Payable $13,500
Cash $13,230
Cash Discount Received

((14,100 – 600)*2%)

$270
Dec.28 Accounts Receivable $3,600
Sales Revenue (600*6) $3,600
Dec.28 Cost of Goods Sold (600*5) $3,000
   Inventory $3,000
Dec.30 Allowance for Uncollectible Account $1,100
   Accounts Receivable $1,100

2) Posting of transaction

T-Account
Allowance for Uncollectible Account
Debit Credit
Account Receivable $1,100 100 Beg Balance
Inventory
Debit Credit
Balance on Dec.22 83230 600 Dec.24 Return
Dec.22 Purchase 14100 3000 Cost of Goods Sold
Accounts Payable
Debit Credit
Dec.24 Return 600 6700 Beginning Bal
Dec.27 Payment 13500 14100 Dec.22 Purchase
270 Cash Discount
Accounts Receivable
Debit Credit
Beg. Bal 27900 1100 Allowance for Uncollectible Account
Dec.28 Sales Revenue 3600
Cost of Goods Sold
Debit Credit
Beg Balance 803000
Inventory 3000
Cash
Debit Credit
Beg. Balance 39970 13230 Dec.27 Accounts Payable
Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?