ABC Stores LTD Unadjusted Trial Balance 31 December 2010 Account S Debits Credit Cash 56.000 Accounts Receivable 75.000 Alowance for Doubtful Account 5.000 Prepaid Insurance 36,000 Merchandise Inventory 100.000 Equipment 40.000 Accumulated Depreciation Equipment 8.000 Building 300,000 Accumulated Depreciation - Building 30.000 Land 500.000 Mortgage Payable 200.000 Accounts Payable Common Stock 415.000 Retained Eamings (As of 1 Jan 2010 540.000 Sales 450.000 Sales Retums and Allowances 25.000 Sales Discounts 5.000 Coat of Goods Sold 120.000 Salary & Wage Expense 60.000 otty Expense 30,000 Supplies Expense 12.000 Total $ 1.358,000 $ 1.358,000 110,000 Transactions 1. ABC Stores LTD purchased merchandise on account from supplier D 540,000, em 2010 1/30 2. ABC Stores LTD sold merchandise on account $30,000, terms 1/10.30. The cost of the merchandise sold was $20.000 3. ABC Stores LTD received collections in full less discounts, from customers billed on sale of $30,000 on transaction 2 4. ABC Scores LTD paid the supplier in full les discount 5. Aging schedule for ABC Stores is presented below NO PER MY 10.89.10.22 FOR 1.200 21 Total 75.00 15.000 15.000.000 2.00 11.000 P ADec 31, 2018, unadjusted balance in Allowance for Dostul Account is a credit of 6. The equipment has no salvage value and a useful te of 10 years. The building has useful life of 10 years with no salvage value. Both the equipment and building were purchased on January 1, 2018. There has been no adjustment to account for depreciation for the current year of 2019. ABC Stores LTD apples declining tanon method for the equipment and straight-line method for the building 7. ABC Stores LTD issued an $200,000,8%, 6-year mortgage note on December 31, 2018 with equal annual payments. Journalize the first installment payment occurred on December 31, 2019 8. Prepaid insurance sa 1-year poily starting December 1, 2019. 8. Rent of $30,000 were unrecorded and unpaid as of 31 December 2013 10. Corporate tax rates 20%. Calculate corporate tax provision expense. Required: a) Open lediger accounts and Journalize the transaction. (50%) b) Prepare adjusted trial balance and multiple step income statement for the period ended December 31, 2018. (10) c) Prepare a classified statement of financial pohon as of December 31, 2013.10 ABC Stores LTD Unadjusted Trial Balance 31 December 2010 Account S Debits Credit Cash 56.000 Accounts Receivable 75.000 Alowance for Doubtful Account 5.000 Prepaid Insurance 36,000 Merchandise Inventory 100.000 Equipment 40.000 Accumulated Depreciation Equipment 8.000 Building 300,000 Accumulated Depreciation - Building 30.000 Land 500.000 Mortgage Payable 200.000 Accounts Payable Common Stock 415.000 Retained Eamings (As of 1 Jan 2010 540.000 Sales 450.000 Sales Retums and Allowances 25.000 Sales Discounts 5.000 Coat of Goods Sold 120.000 Salary & Wage Expense 60.000 otty Expense 30,000 Supplies Expense 12.000 Total $ 1.358,000 $ 1.358,000 110,000 Transactions 1. ABC Stores LTD purchased merchandise on account from supplier D 540,000, em 2010 1/30 2. ABC Stores LTD sold merchandise on account $30,000, terms 1/10.30. The cost of the merchandise sold was $20.000 3. ABC Stores LTD received collections in full less discounts, from customers billed on sale of $30,000 on transaction 2 4. ABC Scores LTD paid the supplier in full les discount 5. Aging schedule for ABC Stores is presented below NO PER MY 10.89.10.22 FOR 1.200 21 Total 75.00 15.000 15.000.000 2.00 11.000 P ADec 31, 2018, unadjusted balance in Allowance for Dostul Account is a credit of 6. The equipment has no salvage value and a useful te of 10 years. The building has useful life of 10 years with no salvage value. Both the equipment and building were purchased on January 1, 2018. There has been no adjustment to account for depreciation for the current year of 2019. ABC Stores LTD apples declining tanon method for the equipment and straight-line method for the building 7. ABC Stores LTD issued an $200,000,8%, 6-year mortgage note on December 31, 2018 with equal annual payments. Journalize the first installment payment occurred on December 31, 2019 8. Prepaid insurance sa 1-year poily starting December 1, 2019. 8. Rent of $30,000 were unrecorded and unpaid as of 31 December 2013 10. Corporate tax rates 20%. Calculate corporate tax provision expense. Required: a) Open lediger accounts and Journalize the transaction. (50%) b) Prepare adjusted trial balance and multiple step income statement for the period ended December 31, 2018. (10) c) Prepare a classified statement of financial pohon as of December 31, 2013.10
