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Complete the assignment given below: Instructions: Jack, Inc. sells toy mice to high - end pet stores. The company has been in business for many
Complete the assignment given below:
Instructions: Jack, Inc. sells toy mice to highend pet stores. The company has been in business for many years and uses the calendar year for accounting purposes. It is a publicly owned company that is subject to all applicable laws and rules. The company uses the perpetual method to account for its inventory.
Following is Jack's trial balance for calendar year through December th This trial balance does not reflect the transactions that occurred during the last days of the year or adjustments that are necessary, as described by the additional information below. The Loan payable is due in months hint: current or noncurrent
Jack, Inc.
Trial Balance
As of December
Debits
Credits
Cash
$
$
Accounts receivable
Supplies
Inventory
Equipment
Accumulated depreciation
Accounts payable
Rent payable
Loan payable
Interest payable
Capital stock
Retained earnings
Sales
Sales Discounts
Cost of goods sold
Rent expense
Salaries expense
Supplies expense
Depreciation expense
Interest expense
Utilities expense
$
$
Step :
We have eight different scenarios. Some of these are adjustments that need to be made and some of these are transactions that occurred between the th and the end of the year that need to be recorded. Write these transactions in the form of General Journal.
T he company received payment to settle a $ Account receivable on December The terms of the receivable were N and the payment reflected that it was within the discount period.
On Dec the company settled with cash a $ Account payable with a vendor who sold the company inventory on December the balance is included in Accounts payable at Dec The terms of the payable were N and the payment reflected that it was within the discount period.
The company sold $ of toy mice on December The terms of the sale were N The cost inventory of the mice was $
The company's president, Elizabeth, decided the company needed more capital, so she sold more stock on December th for $
The equipment was purchased near the beginning of the year. $ of its cost expired this year.
Interest of $ is owed on December but has not been recorded.
Supplies on hand at year end were counted, and amount to $
December's rent of $ is owed, but has not been recorded.
Steps
A Create a threecolumn General Ledger and drop in the account balances from the provided trial balance.
B Create a General Journal and prepare the necessary entries through yearend.
C Post journal entries to your General Ledger set up in B and determine the adjusted balances of the accounts.
D Create an adjusted trial balance.
E Prepare the multistep income statement. Use proper headings!
F Prepare a statement of retained earnings. Use proper headings!
G Prepare a classified balance sheet. Use proper headings!.
H Calculate the current ratio and gross profit percentage and explain what they mean with regard to this company.
I Analyze an aspect of the financial statements with a minimum of a sentence written paragraph. Use proper accounting language and do not forget to clearly define the rule or accounting principle you are analyzing.
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