Interior Design Company specializes in home staging consulting services and sells furniture built by European craftsmen. The

Question:

Interior Design Company specializes in home staging consulting services and sells furniture built by European craftsmen. The following six-column table contains the company’s unadjusted trial balance as of December 31, 2023.

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Required
1. Use the preceding information to determine the amounts of the following items:

1. The correct ending balance of Cash and the amount of the omitted cheque.
2. The adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.
3. The annual depreciation expense for the delivery truck that was acquired during the year (calculated to the nearest month).
4. The annual depreciation expense for the equipment that was in use during the year.
5. The correct ending balances of the Home Staging Consulting Revenue and Unearned Home Staging Consulting Revenue accounts.
6. The correct ending balances of the accounts for Warranty Expense and Estimated Warranty Liability.
7. The correct ending balance of the Interest Expense account. (Round amounts to the nearest whole dollar.)
8. The cost of goods sold for the year.

2. Use the results of requirement 1 to complete the six-column table by first entering the appropriate adjustments for items (a) through (h) and then completing the adjusted trial balance columns.

3. Present general journal entries to record the adjustments entered on the six-column table.

4. Present a single-step income statement, a statement of changes in equity, and a classified balance sheet.

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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