ABC Stores LTD Unadjusted Trial Balance 31 December 2019 REVOLIU LIU TULEVOU ROLUND, LILU, MOTOS of $30,000 on transaction 2 4. ABC Stores LTD paid the supplier Din full, less discount. 5. Aging schedule for ABC Stores is presented below. Number of Past Due Not Yet lour 1.30 31-60 61.90 Over 90 50,000 10.000 10.000 25.000 5.000 M 15.000 5000 5.000 5.000 Z 10,000 10.000 Total 75,000 15,000 15,000 5.000 25.000 15.000 Estimated Percentage unclectible 49 4% 8% 108 12% 60 Total Estimated Bad Debits 12 At Dec 31, 2019, unadjusted balance in Allowance for Doubtful Accounts is a credit of $5,000. 8.000 Account $ Debit $ Credit Cash 55.000 Accounts Receivable 75.000 Allowance for Doubtful Accounts 5,000 Prepaid Insurance 36.000 Merchandise Inventory 100.000 Equipment 40.000 Accumulated Depreciation Equipment Building 300,000 Accumulated Depreciation - Building 30,000 Land 500,000 Mortgage Payable 200.000 Accounts Payable 110.000 Common Stock 415.000 Retained Earnings (As of 1 Jan. 2019) 140.000 Sales 450,000 Sales Returns and Allowances 25.000 Sales Discounts 5.000 Cost of Goods Sold 120,000 Salary & Wage Expense 60.000 Utility Expense 30.000 Supplies Expense 12 000 Total $ 1,358,000 $ 1,358,000 Transactions 1. ABC Stores LTD purchased merchandise on account from supplier D $40,000, terms 2/10, n/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 sales of $30,000 on transaction 2 4. ABC Stores LTD paid the supplier Din full, less discount 5. Aging schedule for ABC Stores is presented below Nume PRO Not Yet Due 21.061.00 50.00 10.000 DOOD 125.000 RAI 5.000 5.000 S000 9000 1060 Total 175.000 15.000 15.000 5.000 25.000 15.00 Estimated porcentage collectie 10 60 ToEstimated 6. The equipment has no salvage value and a useful life of 10 years. The building has a 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 applies declining-balance method for the equipment and straight-line method for the building 7. ABC Stores LTD issued an $200,000, 6%, 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 is a 1-year policy starting December 1, 2019. 9. Rent of $30,000 were unrecorded and unpaid as of 31 December, 2019 10. Corporate tax rate is 20%. Calculate corporate tax provision expense. Required: a) Open ledger accounts and journalize the transactions. (50%) b) Prepare adjusted trial balance and multiple-step income statement for the period ended December 31, 2019. (10%) c) Prepare a classified statement of financial position as of December 31, 2019. (10%) At Dec 31, 2019, unadjusted balance in Allowance for Doubtful Accounts is a credit of $5.000. ABC Stores LTD Unadjusted Trial Balance 31 December 2019 REVOLIU LIU TULEVOU ROLUND, LILU, MOTOS of $30,000 on transaction 2 4. ABC Stores LTD paid the supplier Din full, less discount. 5. Aging schedule for ABC Stores is presented below. Number of Past Due Not Yet lour 1.30 31-60 61.90 Over 90 50,000 10.000 10.000 25.000 5.000 M 15.000 5000 5.000 5.000 Z 10,000 10.000 Total 75,000 15,000 15,000 5.000 25.000 15.000 Estimated Percentage unclectible 49 4% 8% 108 12% 60 Total Estimated Bad Debits 12 At Dec 31, 2019, unadjusted balance in Allowance for Doubtful Accounts is a credit of $5,000. 8.000 Account $ Debit $ Credit Cash 55.000 Accounts Receivable 75.000 Allowance for Doubtful Accounts 5,000 Prepaid Insurance 36.000 Merchandise Inventory 100.000 Equipment 40.000 Accumulated Depreciation Equipment Building 300,000 Accumulated Depreciation - Building 30,000 Land 500,000 Mortgage Payable 200.000 Accounts Payable 110.000 Common Stock 415.000 Retained Earnings (As of 1 Jan. 2019) 140.000 Sales 450,000 Sales Returns and Allowances 25.000 Sales Discounts 5.000 Cost of Goods Sold 120,000 Salary & Wage Expense 60.000 Utility Expense 30.000 Supplies Expense 12 000 Total $ 1,358,000 $ 1,358,000 Transactions 1. ABC Stores LTD purchased merchandise on account from supplier D $40,000, terms 2/10, n/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 sales of $30,000 on transaction 2 4. ABC Stores LTD paid the supplier Din full, less discount 5. Aging schedule for ABC Stores is presented below Nume PRO Not Yet Due 21.061.00 50.00 10.000 DOOD 125.000 RAI 5.000 5.000 S000 9000 1060 Total 175.000 15.000 15.000 5.000 25.000 15.00 Estimated porcentage collectie 10 60 ToEstimated 6. The equipment has no salvage value and a useful life of 10 years. The building has a 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 applies declining-balance method for the equipment and straight-line method for the building 7. ABC Stores LTD issued an $200,000, 6%, 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 is a 1-year policy starting December 1, 2019. 9. Rent of $30,000 were unrecorded and unpaid as of 31 December, 2019 10. Corporate tax rate is 20%. Calculate corporate tax provision expense. Required: a) Open ledger accounts and journalize the transactions. (50%) b) Prepare adjusted trial balance and multiple-step income statement for the period ended December 31, 2019. (10%) c) Prepare a classified statement of financial position as of December 31, 2019. (10%) At Dec 31, 2019, unadjusted balance in Allowance for Doubtful Accounts is a credit of $5.000