60.1K

Verified Solution

Link Copied!

Instructions:

a. Prepare the journal entries to record the above transactions on the books of Nandi Company.

b. Prepare adjusting entries for the following The Prepaid Insurance was taken on April 1, 2018, for the year. Rent accrued for the month of April is $900. At the end of the period the physical count of inventory shows $14000 of inventory in hand.

c. Prepare the adjusted trial balance at the end of April 30, 2018

d. Prepare a multi-step Income Statement at the end of April 30, 2018

e. Prepare closing entries.

Nandi Company has the following accounts in its recently opened business Cr Nandi Company April 30, 2018 Trial Balance Dr Inventory 500 Cash 30,000 Prepaid Insurance 1200 Land 8,800 Building 5,000 Accumulated - Depreciation Owner's Capital Notes Payable Salaries and Wages expense 500 Depreciation Expense 500 46,500 500 15,000 31,000 46,500 This information relates to Nandi Co.: 1. On April 5, purchased merchandise from Dion Company for $25,000, terms 5/10, net/30, FOB shipping point 2. On April 6, paid freight costs of $900 on merchandise purchased from Dion Company 3. On April 7, purchased equipment on account for $30,000. 4. On April 8, returned some of April 5 merchandise, which cost $2,800, to Dion Company. 5. On April 9 Sold $9000 goods to Greg Company for $15000 for cash. 6. On April 15, paid the amount due to Dion Company in full. Nandi Co uses perpetual inventory system

Answer & Explanation Solved by verified expert

See Answer