Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5 7 8 23 26 25 29 31 2 EXERCISE 3 SnowPick Company prepared the following trial balance on November 31, 2020. 4 R.F Title
5 7 8 23 26 25 29 31 2 EXERCISE 3 SnowPick Company prepared the following trial balance on November 31, 2020. 4 R.F Title Debit Credit 100 Cash 9,000 6 120 Acc. Receivat 5,000 128 Allowance for Doubtful 200 150 Supplies 9,000 9 153 Merhandise 11,000 10 250 Land 10,000 11 254 Vehicles 10,000 12 257 Acc. Depreciaiton 4,000 13 320 Acc. Payable 7,000 wonin 14 380 Unearned revenue 2,800 15 500 Capital 30,000 16 600 Revenue 40,000 17 621 Cost of Merc 25,000 18 632 General Adm 5,000 19 84.000 84,000 20 A. At December, 2020, the followi 21 December 1 Sold merchandise for 10000 on account, terms 1/30, n/45. The cost of the merchandise sold was 8000 December 2 Bought merchandise for 15000 by issuing a note. Interest rate 10 %, due date is April 1, 2021. Paid freight on purchase 300 December 5 paid the rent of December for 1000 by issuing a check December 6 3000 Acc. Receivable was changed with a check worth 3,200 December 1!A new egipment purchased for 20.000 with issuing a note Interest rate 10%. Useful life 5 year. Salvage value is 2000 26 December 2Following expenses are paid Travel 20, Utilities 30, Electricity 50 27 December 21Merchandise for 1,000 was returned. The cost of it is 950. 28 December 25 Purchased shares of Company B for 3000 December 2The Insurance policy of fire for 2021 is paid for 600 30 December 31December Wages and Salaries are paid in the first 5 days of the next month after working. W&S for December are 2500 B. At the end of the month, the following information is gathered to prepare financial statements. 1. While vehicles are depricated by straight line methhod, equipment depricated by double decline method. 33 2 Suppiles on hand is 8,000 3. Market value of shares of Company Bis 3150 Land is revalueated. The new value of land is 11200 5. Performaned the service of 2,000 that was recorded as an unearned revenue. 37 Uncollletible receivables are estimated by percentage of sales. According to previous years numbers, 1% of credit sales become uncolletible. 38 The bank statements taken from the bank is below 39 Begining balance of December 9000 Collection of receivabeles 400 Paid check -1000 Colected check 3200 Paid expense 043bills Interest 100 Share purchased -3000 Insurance Paid -600 47 Freight cost paid -300 48 Ending balance of December 7700 44 Instruction 50 a) Journalize the transactions occured in the December 51b) Post the transactions to the ledger 52 C) Prepare the trial balance 53 d) Adjust the trial balance 54 e) Prepare the adjusted trial balance 55f) Prepare the income statement 56 g) Close the income statement accounts 57i) Prepare the balance statement 58 k) Close the balance sheet accounts 59 60 32 2. 34 35 4. 36 6. 7. 40 41 42 43 -100 46 45 46 5 7 8 23 26 25 29 31 2 EXERCISE 3 SnowPick Company prepared the following trial balance on November 31, 2020. 4 R.F Title Debit Credit 100 Cash 9,000 6 120 Acc. Receivat 5,000 128 Allowance for Doubtful 200 150 Supplies 9,000 9 153 Merhandise 11,000 10 250 Land 10,000 11 254 Vehicles 10,000 12 257 Acc. Depreciaiton 4,000 13 320 Acc. Payable 7,000 wonin 14 380 Unearned revenue 2,800 15 500 Capital 30,000 16 600 Revenue 40,000 17 621 Cost of Merc 25,000 18 632 General Adm 5,000 19 84.000 84,000 20 A. At December, 2020, the followi 21 December 1 Sold merchandise for 10000 on account, terms 1/30, n/45. The cost of the merchandise sold was 8000 December 2 Bought merchandise for 15000 by issuing a note. Interest rate 10 %, due date is April 1, 2021. Paid freight on purchase 300 December 5 paid the rent of December for 1000 by issuing a check December 6 3000 Acc. Receivable was changed with a check worth 3,200 December 1!A new egipment purchased for 20.000 with issuing a note Interest rate 10%. Useful life 5 year. Salvage value is 2000 26 December 2Following expenses are paid Travel 20, Utilities 30, Electricity 50 27 December 21Merchandise for 1,000 was returned. The cost of it is 950. 28 December 25 Purchased shares of Company B for 3000 December 2The Insurance policy of fire for 2021 is paid for 600 30 December 31December Wages and Salaries are paid in the first 5 days of the next month after working. W&S for December are 2500 B. At the end of the month, the following information is gathered to prepare financial statements. 1. While vehicles are depricated by straight line methhod, equipment depricated by double decline method. 33 2 Suppiles on hand is 8,000 3. Market value of shares of Company Bis 3150 Land is revalueated. The new value of land is 11200 5. Performaned the service of 2,000 that was recorded as an unearned revenue. 37 Uncollletible receivables are estimated by percentage of sales. According to previous years numbers, 1% of credit sales become uncolletible. 38 The bank statements taken from the bank is below 39 Begining balance of December 9000 Collection of receivabeles 400 Paid check -1000 Colected check 3200 Paid expense 043bills Interest 100 Share purchased -3000 Insurance Paid -600 47 Freight cost paid -300 48 Ending balance of December 7700 44 Instruction 50 a) Journalize the transactions occured in the December 51b) Post the transactions to the ledger 52 C) Prepare the trial balance 53 d) Adjust the trial balance 54 e) Prepare the adjusted trial balance 55f) Prepare the income statement 56 g) Close the income statement accounts 57i) Prepare the balance statement 58 k) Close the balance sheet accounts 59 60 32 2. 34 35 4. 36 6. 7. 40 41 42 43 -100 46 45 46
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started