Comprehensive Problem More Co. is a merchandising business. The account balances for More Co. as of November 30, 2012 (unless otherwise indicated), are as follows: 110 Cash $ 13,920 112 Accounts Receivable 34,220 115 Merchandise Inventory 133,900 116 Prepaid Insurance 3,750 117 Store Supplies 2,550 123 Store Equipment 114,300 124 Accumulated Depreciation-Store Equipment 12,600 210 Accounts Payable 21,450 211 Salaries Payable 0 218 Interest Payable 0 220 Note Payable (Due 2017) 10,000 310 P. Williams, Capital (January 1, 2012) 103,280 311 P. Williams, Drawing 10,000 312 Income Summary 0 410 Sales 715,800 411 Sales Returns and Allowances 20,600 412 Sales Discounts 13,200 510 Cost of Merchandise Sold 360,500 520 Sales Salaries Expense 74,400 521 Advertising Expense 18,000 522 Depreciation Expense 0 523 Store Supplies Expense 0 529 Miscellaneous Selling Expense 2,800 530 Office Salaries Expense 40,500 531 Rent Expense 18,600 532 Insurance Expense 0 539 Miscellaneous Administrative Expense 1,650 550 Interest Expense 240 More Co. uses the perpetual inventory system and the last-in, first-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the Last-in, first-out costing method, please ignore this step in the process. More Co. sells four types of television entertainment units. The sales price of each are: TV A: $3,500 TV B: $5,250 TV C: $6,125 PS D: $9,000 During December, the last month of the accounting year, the following transactions were completed: Dec. 1. Issued check number 2632 for the December rent, $1,600. 3. Purchased four TV C units on account from Prince Co., terms 2/10, n/30, FOB shipping point, $14,800. 4. Issued check number 2633 to pay the transportation changes on purchase of December 3, $400. (NOTE: Do not include shipping and purchase discounts to the Inventory Control sheet for this project.) 6. Sold four TV A and 4 TV B on account to Albert Co., invoice 891, terms 2/10, n/30, FOB shipping point. 7. Received $7,500 cash from Marie Co. on account, no discount. 10. Sold two project systems for cash. 11. Purchased store supplies on account from Matt Co., terms 1/10, n/30, $620. 13. Issued check number 2634 for merchandise purchased on December 3, less discount. 14. Issued credit memo for one TV A unit returned on sale of December 6. 15. Issued check number 2635 for advertising expense for last half of December, $1,500. 16. Received cash from sale of December 6, less return of December 14 and discount. 19. Issued check number 2636 for two TV C units, $7,600. 19. Issued check number 2637 for $6,100 to Jose.

1. Comprehensive Problem
More Co. is a merchandising business. The account balances
for More Co. as of November 30, 2012 (unless otherwise
indicated), are as follows:
110
Cash
$ 13,920
112
Accounts Receivable
34,220
115
Merchandise Inventory
133,900
116

2. Prepaid Insurance
3,750
117
Store Supplies
2,550
123
Store Equipment
114,300
124
Accumulated Depreciation-Store Equipment
12,600
210
Accounts Payable

3. 21,450
211
Salaries Payable
0
218
Interest Payable
0
220
Note Payable (Due 2017)
10,000
310
P. Williams, Capital (January 1, 2012)
103,280

4. 311
P. Williams, Drawing
10,000
312
Income Summary
0
410
Sales
715,800
411
Sales Returns and Allowances
20,600

5. 412
Sales Discounts
13,200
510
Cost of Merchandise Sold
360,500
520
Sales Salaries Expense
74,400
521
Advertising Expense
18,000
522
Depreciation Expense

6. 0
523
Store Supplies Expense
0
529
Miscellaneous Selling Expense
2,800
530
Office Salaries Expense
40,500
531
Rent Expense

7. 18,600
532
Insurance Expense
0
539
Miscellaneous Administrative Expense
1,650
550
Interest Expense
240
More Co. uses the perpetual inventory system and the last-in,
first-out costing method. Transportation-in and purchase
discounts should be added to the Inventory Control Sheet, but
since this will complicate the computation of the Last-in, first-
out costing method, please ignore this step in the process.
More Co. sells four types of television entertainment units.
The sales price of each are:

8. TV A: $3,500
TV B: $5,250
TV C: $6,125
PS D: $9,000
During December, the last month of the accounting year, the
following transactions were completed:
Dec.
1. Issued check number 2632 for the December rent, $1,600.
3. Purchased four TV C units on account from Prince Co., terms
2/10, n/30, FOB shipping point, $14,800.
4. Issued check number 2633 to pay the transportation changes
on purchase of December 3, $400. (NOTE: Do not include
shipping and purchase discounts to the Inventory Control sheet
for this project.)
6. Sold four TV A and 4 TV B on account to Albert Co., invoice
891, terms 2/10, n/30, FOB shipping point.
7. Received $7,500 cash from Marie Co. on account, no
discount.
10. Sold two project systems for cash.
11. Purchased store supplies on account from Matt Co., terms
1/10, n/30,
$620.
13. Issued check number 2634 for merchandise purchased on
December 3, less discount.

9. 14. Issued credit memo for one TV A unit returned on sale of
December 6.
15. Issued check number 2635 for advertising expense for last
half of December, $1,500.
16. Received cash from sale of December 6, less return of
December 14 and discount.
19. Issued check number 2636 for two TV C units, $7,600.
19. Issued check number 2637 for $6,100 to Joseph Co. on
account.
20. Sold three TV C units on account to Cameron Co., invoice
number
892, terms 1/10, n/30, FOB shipping point.
20. For the convenience of the customer, issued check number
2638 for shipping charges on sale of December 20, $600.
21. Received $11,750 cash from McKenzie Co. on account, no
discount.
21. Purchased three projector systems on account from Elisha
Co., terms 1/10, n/30, FOB destination, $15,600.
24. Issued a debit memo for return of $5,200 because of a
damaged projection system purchased on December 21,
receiving credit from the seller.
26. Issued check number 2639 for refund of cash on sales made
for cash, $1,000. (Customer was going to return goods until
partial refund was arranged.)

10. 27. Issued check number 2640 for sales salaries of $1,750 and
office
salaries of $950.
28. Purchased store equipment on account from Matt Co., terms
2/10, n/30, FOB
destination, $800.
29. Issued check number 2641 for store supplies, $550.
30. Sold four TV C units on account to Randall Co., invoice
number 893,
terms 2/10, n/30, FOB shipping point.
30. Received cash from sale of December 20, less discount,
plus transportation
paid on December 20.
30. Issued check number 2642 for purchase of December 21,
less return
of December 24 and discount.
30. Issued a debit memo for $200 of the purchase returned from
December 28.
Instructions:
1. Enter the balances of each of the accounts in the appropriate
balance column of a four-column account (General Ledger).

11. Write Balance in the item section, and place a check mark (√) in
the Post Reference column.
2. Journalize the transactions in a sales journal, purchases
journal, cash receipts journal, cash payments journal, or general
journal as illustrated in chapter 7. Also post to the Accounts
Receivable and Accounts Payable Subsidiary ledgers.
3. Total each column on the special journals and prove the
journal.
4. Post the totals of the account columns and individually post
the other columns as well as the general journal.
5. Prepare the Schedule of Accounts Receivable and the
Schedule of Accounts Payable (their total amount must equal
the amount in their controlling general ledger account).
6. Prepare the unadjusted trial balance on the worksheet.
7. Complete the worksheet for the year ended December 31,
2012, using the following adjustment data:
a. Merchandise inventory on December 31
$111,040
b. Insurance expired during the year
1,250
c. Store supplies on hand on December 31

12. 975
d. Depreciation for the current year needs to be calculated.
More Co. uses the
Straight-line method, the store equipment has a useful life of 10
years with no salvage value. (NOTE: the purchase and return
will not be included as the dates of the transactions were after
the 15th of the month).
e. Accrued salaries on December 31:
Sales salaries
$350
Office salaries
180
530
f. The note payable terms are at 8%, payment is not being
made until Jan. 3, 2013. Interest must be recognized for one
month (round answer to the nearest dollar amount).
8. Prepare a multiple-step income statement, a statement of
owner’s equity, and a

13. classified balance sheet in good form.
9. Journalize and post the adjusting entries.
10. Journalize and post the closing entries. Indicate closed
accounts by inserting a line
in both balance columns opposite the closing entry.
11. Prepare a post-closing trial balance.
SJSALES JOURNALPage No. 6INVOICEPOSTACCTS. REC.
DR.COST OF SALE DR.DATENO.ACCOUNT
DEBITEDREFSALES CR.INVENTORY CR.112233445566
CRJCASH RECEIPTS JOURNALPage No.
4POSTOTHERACCOUNTSCOST/SOLD
DR.SALESCASHDATEACCOUNT CREDITEDREFACCTS -
CR.SALES - CRREC. - CR.INVENTORY CR.DISC. -
DR.DR.112233445566778899
PJPURCHASES JOURNALPage No.
11POSTOTHERACCOUNTSSTOREMERCH.DATEACCOUNT
CREDITEDREF(SUNDRY)PAYABLESUPPLIESINVENORYA
CCTS - DR.CR.DR.DR.1122334455667788
CPJCASH PAYMENTS JOURNALPage
No.8CK.POSTOTHERACCOUNTSMERCH.DATENO.ACCOUN
T
DEBITEDREF(SUNDRY)PAYABLEINVENTORYCASHACCT
S -
DR.DR.CR.CR.1122334455667788991010111112121313141415
151616
JournalJOURNALPage No.
53POSTDATEDESCRIPTIONREFDEBITCREDIT112.23344556
67788991010111112121313141415151616171718181919202021
21222223232424252526262727282829293030313132323333343
4353536363737383839394040JOURNALPage No.

14. 54POSTDATEDESCRIPTIONREFDEBITCREDIT11223344556
67788991010111112121313141415151616171718181919202021
21222223232424252526262727282829293030313132323333343
4353536363737383839394040
InventoryInventory ControlTV A:52 inch Flat Screen
TelevisionPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/1225$2,000$50,000TV B:68 inch Flat Screen
TelevisionPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/1210$3,000$30,000TV C:72 inch Flat Screen
TelevisionPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per
unitAmount11/30/128$3,500$28,000PS D:6 foot x 10 foot
Projector SystemPurchasesCost of Goods Sold
(Sales)INVENTORYDateUnitscost per unitAmountUnitscost per
unitAmountUnitscost per unitAmount11/30/125$5,180$25,900
AR-SUBACCOUNTS RECEIVABLE SUBSIDIARY
LEDGER(CUSTOMERS)Customer Name: Albert
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/20/12SJ 55,8005,800Customer Name: Marie
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/20/12SJ 57,5007,500Customer Name: Cameron
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/15/12SJ 58,7008,700Customer Name: McKenzie
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/27/12SJ 511,75011,750Customer Name: Randall
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/16/12SJ 5470470
AP-SUBACCOUNTS PAYABLE SUBSIDIARY
LEDGER(VENDERS)Vendor Name: Prince
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/26/12PJ 109,7009,700Vendor Name: Joseph

15. Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/16/12PJ 106,1006,100Vendor Name: Elisha
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCE11/29/12PJ 105,6505,650Vendor Name: Matt
Co.POSTRUNNINGDATETRANSACTIONREFDEBITCREDIT
BALANCEVendor
Name:POSTRUNNINGDATETRANSACTIONREFDEBITCRED
ITBALANCE
SCH-SUBSchedule of Accounts ReceivableTotal Accounts
ReceivableSchedule of Accounts PayableTotal Accounts
Payable
B-S LedgerGENERAL LEDGERBalance Sheet
AccountsCashACCOUNT
NO.110POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccounts ReceivableACCOUNT
NO.112POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMerchandise InventoryACCOUNT
NO.115POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITPrepaid InsuranceACCOUNT
NO.116POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore SuppliesACCOUNT
NO.117POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore EquipmentACCOUNT
NO.123POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccumulated Depreciation-Store EquipmentACCOUNT
NO.124POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAccounts PayableACCOUNT
NO.210POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITSalaries PayableACCOUNT
NO.211POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInterest PayableACCOUNT
NO.218POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITNote PayableACCOUNT
NO.220POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITP. Williams, CapitalACCOUNT
NO.310POSTBALANCEDATEITEMREFDEBITCREDITDEBIT

16. CREDITP. Williams, DrawingACCOUNT
NO.311POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITIncome SummaryACCOUNT
NO.312POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT
I-S LedgerGENERAL LEDGERIncome Statement
AccountsSalesACCOUNT
NO.410POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITSales Returns and AllowancesACCOUNT
NO.411POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITSales DiscountsACCOUNT
NO.412POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITCost of Merchandise SoldACCOUNT
NO.510POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITSales Salaries ExpenseACCOUNT
NO.520POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITAdvertising ExpenseACCOUNT
NO.521POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITDepreciation ExpenseACCOUNT
NO.522POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITStore Supplies ExpenseACCOUNT
NO.523POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMiscellaneous Selling ExpenseACCOUNT
NO.529POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITOffice Salaries ExpenseACCOUNT
NO.530POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITRent ExpenseACCOUNT
NO.531POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInsurance ExpenseACCOUNT
NO.532POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITMiscellaneous Administrative ExpenseACCOUNT
NO.539POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDITInterest ExpenseACCOUNT
NO.550POSTBALANCEDATEITEMREFDEBITCREDITDEBIT
CREDIT
WkSheetWorksheetUnadjustedAdjustedIncomeEquity

17. StatementAccount TitleTrial BalanceAdjustmentsTrial
BalanceStatementand Balance
SheetDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.1Cash12Accounts
Receivable23Merchandise Inventory34Prepaid Insurance45Store
Supplies56Store Equipment67Accm. Deprec-Store
Eq.78Accounts Payable89Salaries Payable910Interest
Payable1011Note Payable (Due 2017)1112P. Williams,
Capital1213P. Williams, Drawing1314Sales1415Sales Returns
& Allow.1516Sales Discounts1617Cost of Merchandise
Sold1718Sales Salaries Exp.1819Advertising
Exp.1920Depreciation Exp.2021Store Supplies Exp.2122Misc.
Selling Exp.2223Office Salaries Exp.2324Rent
Exp.2425Insurance Exp.2527Misc. Administrative
Exp.2726Interest Expense262828292930302727
Income StmtIncome Statement
Stmt EquityStatement of Owner's Equity
Bal SheetBalance Sheet
Post TrialPost-Closing Trial BalanceACCOUNT
TITLEDEBITCREDIT