Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Cash 4 , 0 0 0 , 0 0 0 Accounts receivable 4 , 5 0 0 , 0 0 0 Allowance for bad debt
Cash Accounts receivable Allowance for bad debt Other debtors Merchandise Inventory Store supplies Prepaid Insurance Prepaid rent Furniture and equipment Accumulated depreciation Furniture and equipment Motor truck Accumulated depreciation Motor truck Accounts Payable Salary Payable Interest Payable Unearned sales revenue Note Payable, long term Capital Withdrawals Sales revenue Sales discount Sales return and allowance Cost of goods sold Salaries expense Insurance expense Utilities expense Rent expense Depreciation expense Furniture and Equipment Depreciation expense Motor truck Store Supplies Expense Gainloss on disposal of fixed Asset Baddebt Expense Interest Expense Sapphire Gems and Minerals Co Ltd Opal Division Trial Balance as of December The following additional information is available December : Store Supplies on hand on December amounted to $ Insurance of $ was paid on January for the months to May Prepaid rent expired December amounted to $ The furniture and equipment have an estimated useful life of years and is being depreciated on the straightline method down to a residual value of $ The motor truck cost relates to two Livi Trucks purchased for $ each by the company on January The doubledeclining balance method of depreciation is used to compute the trucks depreciation charges and their expected useful life is years or miles. In miles were driven, in in in in in and in The residual value on both truck is $ each. On September the company sold one of the trucks to Daley Company for $ on credit. Round off answers to the nearest dollar. Salaries earned by employees and not yet paid amounted to $ on Dec Accrued interest expense as of December $ On Dec $ of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule on Dec indicated that the Allowance for Bad Debts should be $ A physical count of inventory was done on December after making all the other adjustments and this revealed that there was $ worth of inventory on hand at this point. Other data: The business is expected to make principal payments totalling $ towards the loan during the fiscal year to November Required: a Prepare the necessary adjusting journal entries on Dec Narrations are not required b Prepare the Adjusted Trial balance for the period ending December c Prepare the following financial statements for the division: A Multiplestep income statement & a Statement of owners equity for the year ended December A Classified balance sheet, in report format, at December
Cash
Accounts receivable
Allowance for bad debt
Other debtors
Merchandise Inventory
Store supplies
Prepaid Insurance
Prepaid rent
Furniture and equipment
Accumulated depreciation Furniture and equipment
Motor truck
Accumulated depreciation Motor truck
Accounts Payable
Salary Payable
Interest Payable
Unearned sales revenue
Note Payable, long term
Capital
Withdrawals
Sales revenue
Sales discount
Sales return and allowance
Cost of goods sold
Salaries expense
Insurance expense
Utilities expense
Rent expense
Depreciation expense Furniture and Equipment
Depreciation expense Motor truck
Store Supplies Expense
Gainloss on disposal of fixed Asset
Baddebt Expense
Interest Expense
Sapphire Gems and Minerals Co Ltd Opal Division
Trial Balance as of December
The following additional information is available December :
Store Supplies on hand on December amounted to $
Insurance of $ was paid on January for the months to May
Prepaid rent expired December amounted to $
The furniture and equipment have an estimated useful life of years and is being depreciated on the straightline method down to a residual value of $
The motor truck cost relates to two Livi Trucks purchased for $ each by the company on January The doubledeclining balance method of depreciation is used to compute the trucks depreciation charges and their expected useful life is years or miles. In miles were driven, in in in in in and in The residual value on both truck is $ each. On September the company sold one of the trucks to Daley Company for $ on credit. Round off answers to the nearest dollar.
Salaries earned by employees and not yet paid amounted to $ on Dec
Accrued interest expense as of December $
On Dec $ of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule on Dec indicated that the Allowance for Bad Debts should be $
A physical count of inventory was done on December after making all the other adjustments and this revealed that there was $ worth of inventory on hand at this point.
Other data:
The business is expected to make principal payments totalling $ towards the loan during the fiscal year to November
Required:
a Prepare the necessary adjusting journal entries on Dec Narrations are not required
b Prepare the Adjusted Trial balance for the period ending December
c Prepare the following financial statements for the division:
A Multiplestep income statement & a Statement of owners equity for the year ended December
A Classified balance sheet, in report format, at December
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started