Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Case 3 Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling

Case 3

Mei-ling had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mei-ling prepared the following adjusted trial balance.

Matcha Creations

Adjusted Trial Balance

December 31, 2021

DebitCredit

CashNT$1,180

Accounts Receivable875

Supplies350

Prepaid Insurance1,210

Equipment1,200

Accumulated Depreciation-EquipmentNT$40

Accounts Payable75

Salaries and Wages Payable56

Unearned Service Revenue300

Interest Payable15

Notes Payable2,000

Share CapitalOrdinary800

Dividends500

Service Revenue4,515

Salaries and Wages Expense1,006

Utilities Expense125

Advertising Expense165

Supplies Expense1,025

Depreciation Expense40

Insurance Expense110

Interest Expense15

NT$7,801NT$7,801

Instructions

Using the information in the adjusted trial balance, do the following.

(a)Prepare an income statement and a retained earnings statement for the two months ended December 31, 2021, and a classified statement of financial position at December 31, 2021. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023.

(b)Mei-ling has decided that her year-end will be December 31. Prepare closing entries as of December 31, 2021.

(c)Prepare a post-closing trial balance.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia A Libby

7th Edition

0078111021, 9780078111020

More Books

Students also viewed these Accounting questions

Question

What are the main advantages of PR over advertising?

Answered: 1 week ago

Question

2. In what way can we say that method affects the result we get?

Answered: 1 week ago