Accounting help, needs to be done tomorrow by 9pm. Anyone?

Problem 5-3A Preparing adjusting entries and income statements; and computing gross margin, acid-test, and current ratios L.O. A1, A2, P3, P4

[The following information applies to the questions displayed below.]

The following unadjusted trial balance is prepared at fiscal year-end for Rex Company.

REX COMPANY

Unadjusted Trial Balance

January 31,2011

Debit

Credit

  Cash

$

2,200  

  Merchandise inventory

11,500  

  Store supplies

4,800  

  Prepaid insurance

2,300  

  Store equipment

41,900  

  Accumulated depreciation—Store equipment

$

15,000  

  Accounts payable

9,000  

  T. Rex, Capital

32,000  

  T. Rex, Withdrawals

2,000  

  Sales

104,000  

  Sales discounts

1,000  

  Sales returns and allowances

2,000  

  Cost of goods sold

37,400  

  Depreciation expense—Store equipment

0  

  Salaries expense

31,000  

  Insurance expense

0  

  Rent expense

14,000  

  Store supplies expense

0  

  Advertising expense

9,900  

  Totals

$

160,000  

$

160,000  

Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual inventory system.

a.

Store supplies still available at fiscal year-end amount to $1,650.

b.

Expired insurance, an administrative expense, for the fiscal year is $1,500.

c.

Depreciation expense on store equipment, a selling expense, is $1,400 for the fiscal year.

d.

To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,100 of inventory is still available at fiscal year-end.

Problem 5-3A Part 1

Required:

1.

Using the above information prepare adjusting journal entries (Omit the “$” sign in your response):

General Journal

Debit

Credit

a.

b.

c.

d.

Problem 5-3A Part 2

2.

Prepare a multiple-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

REX COMPANY

Income Statement

For Year Ended January 31, 2011

$   

$  

  Expenses

     Selling expenses

     Total selling expenses

     General and administrative expenses

     Total general and administrative expenses

     Total expenses

$  

Problem 5-3A Part 3

3.

Prepare a single-step income statement for fiscal year 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

REX COMPANY

Income Statement

For Year Ended January 31, 2011

$  

  Expenses

$  

     Total expenses

$  

Problem 5-3A Part 4

4.

Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2011. (Round your answers to 2 decimal places.)

  Current ratio

  Acid-test ratio

  Gross margin ratio

Problem 5-4A Computing merchandising amounts and formatting income statements L.O. C2, P4

[The following information applies to the questions displayed below.]

BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

Debit

Credit

  Merchandise inventory

$

31,000

  Other (noninventory) assets

120,400

  Total liabilities

$

35,000

  N. Kidman, Capital

101,650

  N. Kidman, Withdrawals

8,000

  Sales

212,000

  Sales discounts

3,250

  Sales returns and allowances

14,000

  Cost of goods sold

82,600

  Sales salaries expense

29,000

  Rent expense—Selling space

10,000

  Store supplies expense

2,500

  Advertising expense

18,000

  Office salaries expense

26,500

  Rent expense—Office space

2,600

  Office supplies expense 

800

  Totals

$

348,650

$

348,650

On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.

  Invoice cost of merchandise purchases

$

91,000  

  Purchase discounts received

1,900  

  Purchase returns and allowances

4,400  

  Costs of transportation-in

3,900  

Problem 5-4A Part 1

Required:

1.

Compute the company’s net sales for the year. (Omit the “$” sign in your response.)

  Net sales

$  

Problem 5-4A Part 2

2.

Compute the company’s total cost of merchandise purchased for the year. (Omit the “$” sign in your response.)

  Total cost of merchandise purchased

$  

Problem 5-4A Part 3

3.

Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.)

BIZKID COMPANY

Income Statement

For Year Ended August 31, 2011

$    

$  

  Expenses

  Selling expenses

    Total selling expenses

  General and administrative expenses

    Total general and administrative expenses

  Total expenses

$    

Problem 5-4A Part 4

4.

Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.)

BIZKID COMPANY

Income Statement

For Year Ended August 31, 2011

$  

  Expenses

$  

      Total expenses

$