Debbs Wholesale Antiques financial year is January to December and the following unadjusted

trial balance and accompanying data were present for the year ended December 31, 2016.

Debbs Wholesale Antiques

Trial Balance

December 31, 2016

The following additional information is available at Dec 31, 2016:

(i) Supplies on hand at Dec 31, 2016 amounted to $10,000.

(ii) $80,000 of the prepaid rent expired as at December 31, 2016.

(iii) The Furniture was purchased on January 1st, 2016 and is being depreciated over five (5) years

A/C Name

Debit Credit

Cash 2,500,000

Accounts receivable 300,000

Allowance for Uncollectible Accounts 20,000

Inventory 95,000

Supplies 24,500

Prepaid Rent 120,000

Furniture 3,000,000

Accumulated depreciation - Furniture

Leasehold Improvements 1,200,000

Accumulated depreciation -Leasehold

Accounts payable 210,000

Interest Payable

Salaries payable

Note payable, long term 379,250

Debbs, Capital 5,300,000

Debbs, Withdrawal 120,000

Sales revenue 6,900,000

Cost of good sold 4,000,000

Salary expense 610,000

Telephone expense 125,000

Utilities Expense 110,000

Uncollectible account Expense

Depreciation expense -Building

Depreciation expense - Leasehold

Rent expense 520,000

Supplies expense

Interest expense 84,750

12,809,250 12,809,250

Trial Balance

Page 5

on the double declining method of deprecation down to a residue of $100,000.

(iv) The Leasehold Improvements have an estimated useful life of five (5) years and are being

depreciated on the straight-line method down to a residue of $20,000.

(v) Salaries earned by employees not yet paid amounted to $120,000 at December 31,2016.

(vi) Accrued interest expense due on the notes payable at December 31,2016 amounted to $5,250

(vii) A physical count of inventory at December 31, 2016, reveals $100,000 worth of inventory

on hand.

(viii) After analyzing the accounts in the accounts receivable subsidiary ledger using the aging

method, the companys management estimated that uncollectible accounts will be $30,000.

Required:

1. Prepare the necessary adjusting journal entries on December 31, 2016 (7 Marks)

2. Prepare the multi-step Income Statement for the year ended December 31, 2016 (9 Marks)

3. Prepare the Statement of Owners Equity for the year ended December 31, 2016 (3 Marks)

4. Prepare the Balance Sheet as at December 31, 2016 (11 Marks)

Cheer /Downloads/ACCT1002%20Final%20Examination%20Question%20Paper.20513.20 Debbs Wholesale Antiques financial year is January to December and the following trial balance and accompanying data were present for the year ended December 31, 2016 use Debbs Wholesale Antiques Trial Balance December 31, 2016 AJC Name Trial Balance Debit Crede 2,500,000 Accounts receivable 300 000 Allowance for Uncolectible Accounts 20.000 Inventory 95 000 Supples 24,500 Prepaid Rent 120.000 Fumiture 3.000.000 Accumulated depreciation - Furniture Leasehold improvements 1200000 Accumulated depreciation Leasehold Accounts payable 210.000 Interest Payable - Salanes payable Nole payable long term 379 250 Debts Capital 5300,000 Debbs, Withdrawal 120.000 Sales revenue 6.900.000 Cost of good sold 4.000.000 Salary expense 610 000 Telephone expense 125.000 Uutes Expense 110 000 Uncollectibe account Expense Deprecation expense Building Depreciation expense Leasehol Rent expert 520000 Supplies expense 14.750 Interest expense 12 809 250 12 809 250 Users/Kerase/Downloads/ACCT1002%20Final%20Examination%20Question%20Paper%201%20- The following additional information is available at Dec 31, 2016 0 Supplies on hand at Dec 31, 2016 amounted to $10,000 () $80,000 of the prepaid rent expired as at December 31, 2016. (1) The Furniture was purchased on January 1", 2016 and is being depreciated over five (5) years (iv) Page 5 on the double-declining method of deprecation down to a residue of $100,000 The Leasehold Improvements have an estimated useful life of five (5) years and are being deprecated on the straight-line method down to a residue of $20,000 (V) Salaries camed by employees not yet paid amounted to $120,000 at December 31, 2016 (vi) Accrued interest expense due on the notes payable at December 31, 2016 amounted to 55,250 (vii) A physical count of inventory at December 31, 2016, reveals $100,000 worth of inventory on hand vill) After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimated that uncollectible accounts will be 530,000 Required: 1. Prepare the necessary adjusting journal entries on December 31, 2016 7 Marks) 2. Prepare the multi-step Income Statement for the year ended December 31, 2016 Marks) 3. Prepare the Statement of Owner's Equity for the year ended December 2016 Marks) 4. Prepare the Balance Sheet as at December 31, 2016 1 Marks) Cheer /Downloads/ACCT1002%20Final%20Examination%20Question%20Paper.20513.20 Debbs Wholesale Antiques financial year is January to December and the following trial balance and accompanying data were present for the year ended December 31, 2016 use Debbs Wholesale Antiques Trial Balance December 31, 2016 AJC Name Trial Balance Debit Crede 2,500,000 Accounts receivable 300 000 Allowance for Uncolectible Accounts 20.000 Inventory 95 000 Supples 24,500 Prepaid Rent 120.000 Fumiture 3.000.000 Accumulated depreciation - Furniture Leasehold improvements 1200000 Accumulated depreciation Leasehold Accounts payable 210.000 Interest Payable - Salanes payable Nole payable long term 379 250 Debts Capital 5300,000 Debbs, Withdrawal 120.000 Sales revenue 6.900.000 Cost of good sold 4.000.000 Salary expense 610 000 Telephone expense 125.000 Uutes Expense 110 000 Uncollectibe account Expense Deprecation expense Building Depreciation expense Leasehol Rent expert 520000 Supplies expense 14.750 Interest expense 12 809 250 12 809 250 Users/Kerase/Downloads/ACCT1002%20Final%20Examination%20Question%20Paper%201%20- The following additional information is available at Dec 31, 2016 0 Supplies on hand at Dec 31, 2016 amounted to $10,000 () $80,000 of the prepaid rent expired as at December 31, 2016. (1) The Furniture was purchased on January 1", 2016 and is being depreciated over five (5) years (iv) Page 5 on the double-declining method of deprecation down to a residue of $100,000 The Leasehold Improvements have an estimated useful life of five (5) years and are being deprecated on the straight-line method down to a residue of $20,000 (V) Salaries camed by employees not yet paid amounted to $120,000 at December 31, 2016 (vi) Accrued interest expense due on the notes payable at December 31, 2016 amounted to 55,250 (vii) A physical count of inventory at December 31, 2016, reveals $100,000 worth of inventory on hand vill) After analyzing the accounts in the accounts receivable subsidiary ledger using the aging method, the company's management estimated that uncollectible accounts will be 530,000 Required: 1. Prepare the necessary adjusting journal entries on December 31, 2016 7 Marks) 2. Prepare the multi-step Income Statement for the year ended December 31, 2016 Marks) 3. Prepare the Statement of Owner's Equity for the year ended December 2016 Marks) 4. Prepare the Balance Sheet as at December 31, 2016 1 Marks)