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DR Doz's Wholesale Shop buys merchandise from manufacturers and sells to retail shops. The company's 2015 post-closing trial balance is below: Account CR Cash $50,985
DR Doz's Wholesale Shop buys merchandise from manufacturers and sells to retail shops. The company's 2015 post-closing trial balance is below: Account CR Cash $50,985 Accounts Receivable $23,685 ADA $1,300 Inventory $24,550 Notes Receivable $- Interest Receivable $- Computer $1,400 A/D - Computer $1,400 Equipment A/D - Equipment $- Accounts Payable $12,925 Deferred Revenue $3,350 Wages Payable $7,390 FICA Payable $- FED WH Payable $- FUTA Payable $- Income Tax Payable $3,850 Dividends Payable $- Notes Payable $- Common Stock $25,000 Retained Earnings $45,405 Dividends Interest Revenue Sales Revenue Sales Discounts Sales Returns & Allowances Cost of Goods Sold Bad Debt Expense Insurance Expense Depreciation Expense Utilities Expense Payroll Tax Expense Wages Expense Interest Expense $- Income Tax Expense $- Total $100,620 $100,620 $- $- is is is is S. A. Record journal entries for the transactions below. Note you may need to introduce new accounts not listed on the trial balance above. B. Create an adjusted trial balance, multi-step income statement used for internal purposes, statement of retained earnings, classified balance sheet, and statement of cash flows for Doz's Wholesale Shop year-end 12/31/16. C. Prepare the closing entry and post-closing trial balance for Doz's Wholesale Shop. 1/1/16- Borrowed $50,000 from a local bank and signed a two-year note. The note had a 3% interest rate and all interest is due at the maturity date. 1/1/16 - Purchased equipment for $8,000 by paying cash. In addition, spent another $2,000 cash having the equipment modified before use. The equipment has a residual value of $1,000 and was expected to last 4 years. Doz will use the straight-line method when depreciating this asset. 2/1/16 - Received payment from a customer for sales made last year in the amount of $1,500. 2/1/16 - Paid wages owed to employees for work done previously in the amount of $7,000. 2/1/16 - Received and recorded a utility bill in the amount of $100. Payment will be made in March. 2/1/16-22 boxes of goods were purchased from Stone Company for $1,650 with the terms 4/10,n/30. 2/5/16 - Returned two boxes of goods to the Stone Company. 2/10/16 - Paid the balance due to the Stone Company. 3/1/16 - Paid income taxes due from 2015. 3/5/16 - Paid the utility bill from February. 3/10/16-20 boxes of goods (originally purchased from Stone) were sold to Jordan for $3,000 with the terms 2/10, n/30 3/12/16 - Jordan returns five boxes of goods from 3/10/16 sale. 3/18/16 - Jordan pays the remaining balance owed. 4/1/16 - A customer balance of $500 from a prior year was determined to be uncollectible and was written off. 6/30/16 - Payroll was run and paid out. Gross wages were $7,250, FICA withheld was $550, Federal Tax Withheld was $1,200 and there was no state tax. Unemployment taxes are estimated to be $175. 7/1/16 - A note was received from Grant in exchange for a loan of $20,000 with a 4% interest rate, all interest and principal are due 6/30/17. 7/15/16 - Issued 1,000 shares of $1 par common stock for $3 per share. 8/15/16 - A payment of $500 was received from a customer whose balance had previously been written off. 9/20/16 - Goods costing $12,500 were sold to various customers on account for $25,000. 10/15/16 - Payment was received from customers for the sale on 9/20/16 in the amount of $16,000. 11/1/16 - A 12-month insurance policy was purchased in the amount of $1,800. Coverage begins on 11/1/16. 12/1/16 - A dividend of $0.25 per share was declared. It will be paid out on 12/31/16 to all who own the stock as of 12/15/16. (the original 25,000 shares of common stock should be included in this transaction). 12/15/16 - A customer prepays $1,000 for goods that will be delivered in January. 12/31/16 - A bad debt estimate is made using the aging method. It was determined the final balance in ADA for the year should be $1,550. 12/31/16 - Interest was accrued on the note receivable. 12/31/16 - Interest was accrued on the note payable 12/31/16 - Dividends were paid out. 12/31/16-Depreciation was recorded on the equipment. 12/31/16-A LCM inventory calculation was done and it was determined the correct value of the inventory should be $11,200 12/31/16 - Insurance expense was recorded for November through December. DR Doz's Wholesale Shop buys merchandise from manufacturers and sells to retail shops. The company's 2015 post-closing trial balance is below: Account CR Cash $50,985 Accounts Receivable $23,685 ADA $1,300 Inventory $24,550 Notes Receivable $- Interest Receivable $- Computer $1,400 A/D - Computer $1,400 Equipment A/D - Equipment $- Accounts Payable $12,925 Deferred Revenue $3,350 Wages Payable $7,390 FICA Payable $- FED WH Payable $- FUTA Payable $- Income Tax Payable $3,850 Dividends Payable $- Notes Payable $- Common Stock $25,000 Retained Earnings $45,405 Dividends Interest Revenue Sales Revenue Sales Discounts Sales Returns & Allowances Cost of Goods Sold Bad Debt Expense Insurance Expense Depreciation Expense Utilities Expense Payroll Tax Expense Wages Expense Interest Expense $- Income Tax Expense $- Total $100,620 $100,620 $- $- is is is is S. A. Record journal entries for the transactions below. Note you may need to introduce new accounts not listed on the trial balance above. B. Create an adjusted trial balance, multi-step income statement used for internal purposes, statement of retained earnings, classified balance sheet, and statement of cash flows for Doz's Wholesale Shop year-end 12/31/16. C. Prepare the closing entry and post-closing trial balance for Doz's Wholesale Shop. 1/1/16- Borrowed $50,000 from a local bank and signed a two-year note. The note had a 3% interest rate and all interest is due at the maturity date. 1/1/16 - Purchased equipment for $8,000 by paying cash. In addition, spent another $2,000 cash having the equipment modified before use. The equipment has a residual value of $1,000 and was expected to last 4 years. Doz will use the straight-line method when depreciating this asset. 2/1/16 - Received payment from a customer for sales made last year in the amount of $1,500. 2/1/16 - Paid wages owed to employees for work done previously in the amount of $7,000. 2/1/16 - Received and recorded a utility bill in the amount of $100. Payment will be made in March. 2/1/16-22 boxes of goods were purchased from Stone Company for $1,650 with the terms 4/10,n/30. 2/5/16 - Returned two boxes of goods to the Stone Company. 2/10/16 - Paid the balance due to the Stone Company. 3/1/16 - Paid income taxes due from 2015. 3/5/16 - Paid the utility bill from February. 3/10/16-20 boxes of goods (originally purchased from Stone) were sold to Jordan for $3,000 with the terms 2/10, n/30 3/12/16 - Jordan returns five boxes of goods from 3/10/16 sale. 3/18/16 - Jordan pays the remaining balance owed. 4/1/16 - A customer balance of $500 from a prior year was determined to be uncollectible and was written off. 6/30/16 - Payroll was run and paid out. Gross wages were $7,250, FICA withheld was $550, Federal Tax Withheld was $1,200 and there was no state tax. Unemployment taxes are estimated to be $175. 7/1/16 - A note was received from Grant in exchange for a loan of $20,000 with a 4% interest rate, all interest and principal are due 6/30/17. 7/15/16 - Issued 1,000 shares of $1 par common stock for $3 per share. 8/15/16 - A payment of $500 was received from a customer whose balance had previously been written off. 9/20/16 - Goods costing $12,500 were sold to various customers on account for $25,000. 10/15/16 - Payment was received from customers for the sale on 9/20/16 in the amount of $16,000. 11/1/16 - A 12-month insurance policy was purchased in the amount of $1,800. Coverage begins on 11/1/16. 12/1/16 - A dividend of $0.25 per share was declared. It will be paid out on 12/31/16 to all who own the stock as of 12/15/16. (the original 25,000 shares of common stock should be included in this transaction). 12/15/16 - A customer prepays $1,000 for goods that will be delivered in January. 12/31/16 - A bad debt estimate is made using the aging method. It was determined the final balance in ADA for the year should be $1,550. 12/31/16 - Interest was accrued on the note receivable. 12/31/16 - Interest was accrued on the note payable 12/31/16 - Dividends were paid out. 12/31/16-Depreciation was recorded on the equipment. 12/31/16-A LCM inventory calculation was done and it was determined the correct value of the inventory should be $11,200 12/31/16 - Insurance expense was recorded for November through December
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