Question
Burbon Ltd. is a private company reporting under ASPE. The adjusted trial balance at its fiscal year end, December 31, 2021, is shown below: BURBON
- Burbon Ltd. is a private company reporting under ASPE. The adjusted trial balance at its fiscal year end, December 31, 2021, is shown below:
| BURBON LTD. |
| Adjusted Trial Balance |
| December 31, 2021 |
| Debit | Credit |
| Cash | $ 25,000 |
| Accounts Receivable | 16,000 |
| Inventory | 333,000 |
| Prepaid Expenses | 24,000 |
| Supplies | 1,600 |
| Equipment | 37,500 |
| Accounts Payable | $ 36,000 |
| Income tax payable | 72,000 |
| Unearned Revenue | 86,000 |
| Common shares (56,000 issued) | 56,000 |
| Retained Earnings (January 1, 2021) | 19,900 |
| Dividends | 5,600 |
| Sales | 772,000 |
| Cost of goods sold | 445,000 |
| Depreciation expense | 7500 |
| Interest expense | 1,000 |
| Wages expense | 72,000 |
| Insurance expense | 1,100 |
| Income tax expense | 57,600 |
| Rent expense | 15,000 |
| $ 1,041,900 | $ 1,041,900 |
Instructions
| a) | Prepare a statement of retained earnings. |
| b) | Journalize the closing entries. |
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ISO IEC 27001 Lead Auditor Mastering ISMS Audit Techniques
Authors: Dr Tamuka Maziriri
1st Edition
107903160X, 978-1079031607
