The document discusses accounting for plant assets, accounts receivable, inventory, and stock. It provides journal entries for land and equipment purchases and sales, depreciation calculations, and allowance for doubtful accounts. It also discusses concepts for improving sales and costs at a department store and combining ideas. Journal entries are given for stock dividends and cash dividends.
The document discusses accounting for plant assets, accounts receivable, inventory, and stock. It provides journal entries for land and equipment purchases and sales, depreciation calculations, and allowance for doubtful accounts. It also discusses concepts for improving sales and costs at a department store and combining ideas. Journal entries are given for stock dividends and cash dividends.
The document discusses accounting for plant assets, accounts receivable, inventory, and stock. It provides journal entries for land and equipment purchases and sales, depreciation calculations, and allowance for doubtful accounts. It also discusses concepts for improving sales and costs at a department store and combining ideas. Journal entries are given for stock dividends and cash dividends.
The document discusses accounting for plant assets, accounts receivable, inventory, and stock. It provides journal entries for land and equipment purchases and sales, depreciation calculations, and allowance for doubtful accounts. It also discusses concepts for improving sales and costs at a department store and combining ideas. Journal entries are given for stock dividends and cash dividends.
Dec-31 Bad Debt Expenses $ 7,200.00 Allowance for Doubtful Accounts $ 7,200.00
III. Accounting for Merchandising Operations
a. Maggie's Concept MiniMax Department Store MiniMax Department Store Income Statement For the year ended December 31, 2020 Increase/Decrease Dec 31 20 Maggie's Amount Percentage Net Sales $ 700,000.00 $ 742,000.00 $ 42,000.00 6% COGS $ 546,000.00 $ 556,920.00 $ 10,920.00 2% Gross Profit $ 154,000.00 $ 185,080.00 $ 31,080.00 20% Operating Exp Selling Exp $ 100,000.00 $ 100,000.00 $ - 0% Adm Exp $ 25,000.00 $ 25,000.00 $ - 0% Total Oprating Exp $ 125,000.00 $ 125,000.00 $ - 0% Net Income $ 29,000.00 $ 60,080.00 $ 31,080.00 107% MiniMax Department Store MiniMax Department Store Income Statement For the year ended December 31, 2020
b. James Concept Increase/Decrease Dec 31 20 James Amount Percentage Net Sales $ 700,000.00 $ 700,000.00 $ - 0% COGS $ 546,000.00 $ 546,000.00 $ - 0% Gross Profit $ 154,000.00 $ 154,000.00 $ - 0% Operating Exp Selling Exp $ 100,000.00 $ 24,000.00 $ -76,000.00 -76% Adm Exp $ 25,000.00 $ 25,000.00 $ - 0% Total Oprating Exp $ 125,000.00 $ 49,000.00 $ -76,000.00 -61% Net Income $ 29,000.00 $ 105,000.00 $ 76,000.00 262%
c. both sets of proposed
MiniMax Department Store
MiniMax Department Store Income Statement For the year ended December 31, 2020
d. Meggie and Joe's ideas are good, but it would be nice if the ideas could be combined to make it more perfect and provide benefits for the company by increasing sales and buying goods with a lot of stock so that the purchase price is cheaper, besides that we can reduce operating costs as James's idea
IV. Accounting Stock
a. Journal Item Stock Number share outstanding 80,000 Par value per share $ 25
$ 2,000,000 Retained earningd $ 850,000 Total stockholder's equity $ 2,850,000 Date Remaks Debit Credit Feb-05 Retained earning $ 160,000 Common dividends payable $ 160,000 Mar-05 Common dividends payable $ 160,000 Cash/Bank $ 160,000
Date Remaks Debit Credit
Jul-01 Retained earning $ 240,000 (80.000 x 10%)= 8000 shares x 30 Common stock dividend distribute $ 200,000 (8000 shares x 25) Paid-in Capital in excess of par value, Common stock $ 40,000 Jul-15 No Journal entry
Jul-31 Common stock dividend distribute $ 200,000
Common stock $25 par value $ 200,000
Date Remaks Debit Credit
Dec-01 Retained earning $ 160,000 Common dividends payable $ 160,000
Liabilities Current Liabilities Accounts payable $ 25,000 $ 30,000 Short-term notes payable $ 40,000 $ 90,000 Total Current Liabilities $ 65,000 $ 120,000 Long Term Liabilities Bonds payable $ 75,000 $ 160,000 Total Liabilities $ 140,000 $ 280,000 Stockholder's Equity Common stock $ 160,000 $ 145,000 Retained earnings $ 105,000 $ 75,000 Total Stockholder's Equity $ 265,000 $ 220,000 Total liabilities and stockholders' equity $ 405,000 $ 500,000
Remaks 2020 2019
Number share outstanding $ 960,000 $ 960,000
Common stock $ 160,000 $ 145,000 Total paid-in capital $ 1,120,000 $ 1,105,000 Retained Earnings $ 105,000 $ 107,000 Total stockholders equity $ 1,225,000 $ 1,212,000 1. Current Ratio Current Ratio Current assets Current Liabilities
Current Ratio 235,000 362%
65,000
2. Return on common stockholders' equity
Return on common stockholders'
equity Net Income - Preferred dividend Average Common Stock equity
