Answered step by step
Verified Expert Solution
Question
1 Approved Answer
9 (10 points) If you would like to use a spreadsheet for this question, please click here to have a spreadsheet open in a new
9 (10 points) If you would like to use a spreadsheet for this question, please click here to have a spreadsheet open in a new tab. Once you are finished, you will need to click the "Click here to save your work" button. This will copy a link to your clipboard, which you can then paste into your answer field below, allowing your instructors to access your spreadsheet Hawks Rocks Ltd. is a pop-up retailer of clothing. The following represents the fully adjusted trial balance of Hawks Rocks Ltd. at December 31, 2020 before the closing entries for the year ended December 31, 2020: Debit Credit Accounts receivable 62.000 Accounts payable 80,000 Accumulated depreciation: Equipment 55,000 Administrative expenses 10,000 Bank loan payable (due November 2024) 90,000 Cash 35,000 Couted capital 110,000 Cost of sales 135.000 Deferred revenue (goods to be delivered in 2021) 7.500 Depreciation expense 15,000 Equipment 250,000 Income tax expense 42.000 Interest expenses 12,000 Interest revenue 2.000 Inventory 130,000 Note receivable (due December 2028) 79,000 Note payable (due October 2021) 110,000 42,000 Prepaid expenses 14,000 Rental expenses Retained earnings Sales revenue Selling expenses Supplies TOTAL 101,000 307,000 21,500 15,000 862.500 862.500 Debit Credit Accounts receivable 62,000 Accounts payable 80,000 Accumulated depreciation: Equipment 55,000 Administrative expenses 10,000 Bank loan payable (due November 2024) 90,000 Cash 35,000 Contributed capital 110,000 Cost of sales 135,000 Deferred revenue (goods to be delivered in 2021) 7,500 Depreciation expense 15,000 Equipment 250,000 Income tax expense 42,000 Interest expenses 12,000 Interest revenue 2,000 Inventory 130,000 Note receivable (due December 2028) 79,000 Note payable (due October 2021) 110,000 Prepaid expenses 42,000 Rental expenses Retained earnings 14,000 101,000* 307,000 Sales revenue Selling expenses Supplies TOTAL 21,500 15,000** 862,500 862,500 *Represents opening retained earnings. There were no dividends declared during the year. Represents the amount of supplies on hand at the end of December 31, 2020. Required 1. Prepare closing entries for the year ended December 31, 2020. 2. Calculate retained earnings as of December 31, 2020. 3. Prepare a properly formatted statement of financial position as at December 31, 2020
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