Hooge Publishers r2 Processing Accounting Information SERIAL PROBLEM: KATE'S CARDS Note: This is a continuation of the S

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Hooge Publishers R2 Processing Accounting Information Serial Problem Kate S Cards Note This Is A Continuation Of The S 1 (64.05 KiB) Viewed 33 times

Hooge Publishers r2 Processing Accounting Information SERIAL PROBLEM: KATE'S CARDS Note: This is a continuation of the Serial Problem: Kate's Cards from Chapter 1.) SP2. In September 2019. Kate incorporated Kate's Cards after investigating different organizational for and began the process of getting her business up and running. The following events occurred du the month of September 2019 1. Kate deposited $10,000 that she had saved into a newly opened business checking account. Se received common stock in exchange. 2 Kate designed a brochure that she will use to promote her greeting cards at local stationery s 3. Kate paid Fred Simmons $50 to critique her brochure before undertaking her final design and printing. 4. Kate purchased a new iMac computer tablet, specialized graphic arts software, and commercial inter for the company, paying $4,800 in cash. She decided to record all of these items under the same equipment account. 5. Kate purchased supplies such as paper and ink for $350 at the local stationery store. She opened a business account with the store and was granted 30 days credit on all purchases, including the one she just made. 6. Kate designed her first 5 cards and prepared to show them to potential customers. 7. The owner of the stationery store where Kate opened her account was impressed with Kate's work and ordered 1,000 of each of the five card designs at a cost of $1 per card, or $5,000 total. Kate tells the customer that she will have them printed and delivered within the week. 8. Kate purchased additional supplies, on account, in the amount of $1,500. 9. Kate delivered the 5,000 cards. Because the owner knows that Kate is just starting out, he paid her immediately in cash. He informed her that if the cards sell well that he will be ordering more, but would expect a 30-day credit period like the one he grants to his own business customers. 10. The cost to Kate for the order was $1.750 of the supplies she had purchased. (Hint: This cost should be recorded as a debit to an expense called Cost of Goods Sold.) 11. Kate paid her balance due for the supplies in full. 12. Kate purchased a one-year insurance policy for $1,200, paying the entire amount in cash. (Hin Two accounts will need to be debited here, one for the current month expense and one for the prepaid amount.) 13. Kate determined that all of her equipment will have a useful life of 4 years (48 months) at which time it will not have any resale or scrap value. (Hint: Kate will expense 1/48th of the cost of the equipment each month to Depreciation Expense. The credit will be to Accumulated Depreciation 14. Kate paid herself a salary of $1,000 for the month. 15. Kate paid rent expense for the month in the amount of $1,200. Required a. Prepare a general ledger with the following accounts: Cash; Accounts Receivable; Supplies In ventory: Prepaid Insurance: Equipment; Accumulated Depreciation; Accounts Payable: Coo Stock: Retained Earnings; Sales Revenue; Cost of Goods Sold; Consulting Expense; Insuranc Expense; Depreciation Expense; Wages Expense; Rent Expense. Prepare journal entries for th above transactions using these accounts. b. Post the accounting transactions for the month of September 2019 to the general ledg T-accounts, c. Prepare a trial balance for Kate's Cards as of September 30, 2019. YOUR KNOWLEDGE EPORTING AND ANALYSIS K2-1. Financial Reporting Problem: Columbia Sportswear Company The financial statemen the Columbia Sportswear Company can be found in Appendix A at the end of this book. following selected accounts, in thousands, are from those statements: