#4. complete the closing journal, multi-step income statement, and the balance sheet
ALU ACCT. Principles 1, FINANCIAL MERCHANDISING - Final Accounts CONTINUED The following unadjusted trial balance is prepared for fiscal-year-end 3/31/2017, for Holman Merchandising Company. STATEMENT OF RETAINED EARNINGS CLOSING ENTRIES Dr CE. STEP FOUR Closing Entries STEP FIVE Income Summary STEP SIX Post closing Trial Balance Adjusted Trial Balance S52393 $ 19.550 $ 28,680 $ 1.500 400 S 51.000 $ 19,950 STATEMENT OF BALANCE SHEET $ 26,800 $ $ $ $ 12,294 15,000 1,152 30,000 IS 55.000 $ 19.073 S 6.500 $ 21.930 Cash S $2.193 Accounts receivable $ 19,550 Merchandise inventory $ 28,680 Supplies S 1.500 Prepaid insurance IS 400 Store equipment s 51.000 Accumulated Depr.- Stores equip $ 19,950 Office equipment S 26,800 Accumulated Depr - Office equip. $ 12.294 Accounts payable $15.000 Salaries payable S 1.152 Notes pavalle S 20.000 Notes intrest payable $ 400 Common stock IS 55.000 Retained earnings $19.073 Dividends paid $ 6.500 Income summary S 21.930 S 28.680 $235,400 $235.400 Sales discount S 4.100 IS Sales returns/allowances S 3.900 $ Purchases $ 86,400 IS Purchases returns allowance $ 750XIS 7.500 Purchases discount $ 6,450 $ 6,450 Freight-in $ 9,300 $ Depreciation expense-Stores equip $ 3,450 $ Depreciation expense-Office equip $ 2,144 Is Sales commission expense $ 31,000 $ Salaries expense S43.752 $ Insurance expense s 3.200 S Rent expense IS 24.000 S Supplies expense s 3.300 $ Advertising exp S7.200 S Notes interest expense $ 400 Is NewLoks) Totals $430,899 $430,899 $ 28.680 $235.400 Sales 4.100 3,900 36.400 S $ S 4.100 3,900 86.400 INCOME STATEMENT Multi-step $ 7.500 S6,450 9,300 S 9,300 3,450 $ 3.450 2.144 S 2.144 31,000 $ 31,000 43.752 $ 43,752 3.200 $ 3,200 24,000 24,000 3,300 $ 3,300 7.200 S 7.200 400 S 400 33.954 $ 278,030 $ 33,954 $ 186,823 $278,030 $ 186,823 | Notes Prepare a multi-step income statement, in proper form, for the company for period ended 3/31/2017 Distribution of the following costs between selling and administration are as follows: Salaries/ wages 20:80: Insurance and Supplies 50-50; Rent 60:40; Notes interest 70:30 Prepare the Statement of Retained eanings and the Classified Balance Sheet for the company, as at 3/31/2017 Further Steps: 4 Close all temporary operating account to income summary, if using the spreadsheet format, or to the income statement if using the formal documentation. When using the spreadsheet format, operating expenses are not apportioned to selling or general administration categories. This division is made when compiling the formal multi-step income statement. The channel used to transfer the temporary accounts to the income summary or income statement is the closing journal. Apart from closing the temporary operating expenses, non operating income and expenses are also closed. Dividends paid, though a temporary account, is not an operating expense, but is a chance on owners, thus it is not part of the income summary/statement. It is to the post closing trial balance, eventually to the retained camnings statement The balance in the income summary, if debit it is net profit credited to post closing T/B, if credit, it is net loss debited to post closing T/B The post closing TB is a list of the remaining (unused) balances from the adjusted TB. These balances will go to the balance sheet, all being permanent accounts that will start the following accounting cycle with opening balances 6 Based on previous lectures, you should now be able to prepare the financial statements. Note that the footnote to the question gives the ACCT. Principles 1. FINANCIAL MERCHANDISING Final Account CONTINUED The following uradjusted trial balance is prepared for fiscal year-end 3/31/2017 for Holman Merchandising Company STATEMENT OF RETAINED EARNING CLOSING ENTRIES STEP FOR Closing Entries STEPHE Income Summary Adjusted Trial Balance STEP SIX Post-clasing Trial Balance $ 52,393 $ $ 19.950 28.00 $ 1,500 $ $1,000 $19.950 STATEMENT OF BALANCE SHEET $ 26,00 S 12,294 S 15.000 S 30.000 $ 55,000 $ 19,073 Cach S $2.393 Accounts receivable Merchandise inventory S 26O Supplies $ 1.500 Prepaid insurance Store equipment S $1.000 Necu DpStores equip $19.950 Office equipment SMO Acumud Dep. Office equip. Necounts payable S 15.000 Salaries payable $ 1152 Notes payable S 10.000 Notesi payable S 400 Commenstock Hindami Dividend paid $ 6.500 Income umary $ 21,90 S28.680 S215400 $215.400 Sales du 54.100 S 3.900 Purchase S86.400 Purchase return allowance S 7,500 S 7,500 Purchases discount S6450 S 6,450 Freight in S 9.300 Depreciation expense Stores equips 3.450 Depreciatice expenOffice equips 2.144 Sales commission expense S31.000 Salaries sense S41,752 Insurance expense S 3.200 S 24.000 Supplies expense S 3300 6,500 $21.930 S 28.60 $215.400 4.100 S 4.100 3.900S 3.900 96,400 S 86.400 INCOME STATEMENT Map $ $ $ S $ $ $ $ 9,300 S 9300 3.450 S 3.450 2.144 S 2.144 31,000 $31000 43,752 $ 43.752 3.200 S 3.200 24,000 $ 24.000 3300 3300 Rent expense Supplies expense. Advertising exp Notes interest expense Net Income (Loss) Totals $ 24,000 $ 3,300 $ 7,200 $ 400 $ $ $ $ 24,000 3,300 7.200 400 $ 24,000 $ 3,300 $ 7,200 S 400 S 33,954 $ 278,030 $ 33,954 S 186,823 $ 430,899 $430,899 $278,030 $ 186,823 Notes Prepare a multi-step income statement, in proper form, for the company, for period ended 3/31/2017. Distribution of the following costs between selling and administration are as follows: Salaries/wages 20:80: Insurance and Supplies 50:50: Rent 60:40: Notes interest 70:30. Prepare the Statement of Retained earnings and the Classified Balance Sheet for the company, as at 3/31/2017 Further Steps: 4 Close all temporary operating account to income summary, if using the spreadsheet format, or to the income statement if using the formal documentation. When using the spreadsheet format, operating expenses are not apportioned to selling or general administration categories. This division is made when compiling the formal multi-step income statement. The channel used to transfer the temporary accounts to the income summary or income statement is the closing journal Apart from closing the temporary operating expenses, non operating income and expenses, are also closed. Dividends paid, though a temporary account, is not an operating expense, but is a charge on owners, thus it is not part of the income summary/statement. It is to the post closing trial balance, eventually to the retained earnings statement The balance in the income summary, if debit it is net profit credited to post closing T/B, if credit, it is net loss debited to post closing T/B The post closing T/B is a list of the remaining (unused) balances from the adjusted T/B. These balances will go to the balance sheet, all being permanent accounts that will start the following accounting cycle with opening balances.. Based on previous lectures, you should now be able to prepare the financial statements. Note that the footnote to the question gives the distribution % of the operating expenses, between selling, and administration, Refer to your textbook and the notes I sent you to see how the multi-step income statement is prepared. The power point slides will help Project You are required to prepare the closing entries joumal, multi-step income statement, and the balance sheet for the company as at Ousetion 3/31/2017. You may use the templates on the right hand side of this page. Due on 4/10/2020. Submit by email
