P7-10 (Page 388) - Evergreen Company

Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2011, the following transactions related to receivables occurred:

Required:

1.Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold (round all calculations to the nearest dollar).

2.Prepare any necessary adjusting entries at December 31, 2011. Adjusting entries are only recorded at year- end (round all calculations to the nearest dollar).

3.Prepare a schedule showing the effect of the journal entries in requirements 1 and 2 on 2011 income before taxes.

See Below for answers:

Problem 7-10

Requirement 1

February...