The unadjusted trial balance of Global Enterprises for the year ended December 31, 2024, follows:

Additional information:
1. There was $700 of supplies on hand on December 31, 2024.
2. Depreciation expense for the year is $5,360 on the furniture, and $4,200 on the equipment

3. Accrued interest expense at December 31, 2024, is $1,750.
4. Accrued interest revenue at December 31, 2024, is $720.
5. Of the unearned revenue, $1,600 is still unearned at December 31, 2024. On the amount that was earned, the cost of goods sold was $755.
6. A physical count of merchandise inventory indicates $35,275 on hand on December 31, 2024.
7. Global Enterprises uses the perpetual inventory system and the earnings approach.

Instructions
a. Prepare the adjusting entries assuming they are prepared annually and update account balances.
b. Prepare a multiple-step income statement.
c. Prepare a single-step income statement.
d. Prepare the closing entries.

Taking It Further

Compare the single-step and multiple-step income statements and comment on the usefulness of each. In your comments, refer to specific details related on Global Enterprises’ income statements.

Transcribed Image Text:

Cash Short-term investments Accounts receivable Merchandise inventory Supplies Furniture Accumulated depreciation-furniture Equipment Accumulated depreciation-equipment Accounts payable Unearned revenue GLOBAL ENTERPRISES Trial Balance December 31, 2024 Notes payable I. Rochefort, capital I. Rochefort, drawings Sales Sales returns and allowances Sales discounts Cost of goods sold Insurance expense Rent expense Salaries expense Debit $ 16,400 18,000 15,700 37,500 1,650 26,800 42,000 35,500 6,670 2,450 132,300 1,800 9,300 28,400 $374,470 Credit $ 10,720 8,400 26,850 3,000 35,000 45,500 245,000 $374,470