- - - - - - - - - - - - - - - P5-6A, Journalize, post, and prepare adjusted trial balance and financial statements. The trial balance of Customer Choice Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year. CUSTOMER CHOICE WHOLESALE COMPANY ------------- Trial Balance December 31, 2017 Debit Credit Cash $31,400 Accounts Receivable 37,600 Inventory 70,000 Land 92,000 Buildings 200,000 Accumulated Depreciation Buildings $60,0001 Equipment 83,500 Accumulated Depreciation Equipment 40,5001 Notes Payable 54,700 Accounts Payable 17,5001 Common Stock 160,000 Retained Earnings 67,200 Dividends 10,000 Sales Revenue 922,100 Sales Discounts 6,000 Cost of Goods Sold 709,900 Salaries and Wages Expense 51,300 Utilities Expense 11,400 Maintenance and Repairs Expense 8,900 Advertising Expense 5,200 Insurance Expense 4,800 $1,322,000 --__$1,322,000 Adjustment data: 1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.) 2. Interest of $4,500 is due and unpaid on notes payable at December 31. 3. Income tax due and unpaid at December 31 is $24,000 Other data: $15,000 of the notes payable are payable next year. Instructions: (a) Journalize the adjusting entries. Amount 12/31/17 Account Title Account Title Account Title Amount Amount Amount 12/31/17 Account Title Account Title Amount Amount 12/31/17 Account Title Account Title Amount (b) T accounts have been created for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries. Interest Payable Accumulated Depreciation Buildings 12/31/17 Bal. Accumulated Depreciation Equipment Income Tax Expense 12/31/17 Depreciation Expense Buildings Income Tax Payable Interest Expense Credit c) Prepare an adjusted trial balance. CUSTOMER CHOICE WHOLESALE COMPANY Adjusted Trial Balance December 31, 2017 Debit Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title T I Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Totals Formula Formula (d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet a December 31, 2012. CUSTOMER CHOICE WHOLESALE COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenues Account Title Account Title Title Amount Amount Formula Amount Formula Account Title Gross profit Operating expenses Account Title Account Title Account Title Account Title Account Title Account Title Title Title Title Title Title Account Title Title Amount Amount Amount Amount Amount Amount Formula Formula Amount Formula Amount Formula CUSTOMER CHOICE WHOLESALE COMPANY Retained Earnings Statement For the Year Ended December 31, 2017 Title Add: Amount Amount Formula Amount Formula Less: Title CUSTOMER CHOICE WHOLESALE COMPANY Balance Sheet December 31, 2017 Assets Amount Amount Amount Formula Current assets Account Title Account Title Account Title Title Title Account Title Account Title Less: Account Title Account Title Less: Account Title Title Amount Formula Amount Amount Amount Amount Formula Formula Formula Liabilities and Stockholders' Equity Amount Amount Amount Amount Formula Current liabilities Account Title Account Title Account Title Account Title Title Title Account Title Title Title Account Title Account Title Title Title Formula Formula Amount Amount Formula Formula
