Question
Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2016: DEVLIN COMPANY Worksheet For the Year Ended December 31,
Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2016:
DEVLIN COMPANY |
Worksheet |
For the Year Ended December 31, 2016 |
1 | Trial Balance | Trial Balance | Adjustments | Adjustments | Income Statement | Income Statement | Retained Earnings Statement | Retained Earnings Statement | Balance Sheet | Balance Sheet | ||
2 | Account | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |
3 | Cash | 1,000.00 | ||||||||||
4 | Accounts Receivable | 2,700.00 | ||||||||||
5 | Allowance for Doubtful Accounts | 30.00 | ||||||||||
6 | Note Receivable | 1,200.00 | ||||||||||
7 | Inventory | 9,200.00 | ||||||||||
8 | Land | 4,500.00 | ||||||||||
9 | Buildings and Equipment | 20,600.00 | ||||||||||
10 | Accumulated Depreciation | 8,790.00 | ||||||||||
11 | Accounts Payable | 4,050.00 | ||||||||||
12 | Notes Payable | 4,000.00 | ||||||||||
13 | Common Stock | 5,000.00 | ||||||||||
14 | Retained Earnings (1/1/16) | 6,120.00 | ||||||||||
15 | Dividends | 600.00 | ||||||||||
16 | Sales Revenue | 25,140.00 | ||||||||||
17 | Rent Revenue | 550.00 | ||||||||||
18 | Cost of Goods Sold | 9,050.00 | ||||||||||
19 | Salaries Expense | 2,750.00 | ||||||||||
20 | Delivery Expense | 720.00 | ||||||||||
21 | Heat and Light Expense | 820.00 | ||||||||||
22 | Other Expenses | 540.00 | ||||||||||
23 | Totals | $53,680.00 | $53,680.00 | |||||||||
For classification purposes: | ||||||||||||
Note Receivable is due May 1, 2017 | ||||||||||||
Notes Payable is due April 1, 2019 | ||||||||||||
The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals $80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017.
Required:
1. | Complete the worksheet. |
2. | Prepare the companys financial statements. |
3. | Prepare (a) adjusting and (b) closing entries in the general journal. |
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