Greggs Shipping Supplies Ltd- Jamaica Branch

Trial Balance as at June 30, 2022

A/C NAME	DEBIT	CREDIT
Cash	1,250,000
Accounts receivable	1,300,000
Allowance for bad debt		100,000
Merchandise inventory	1,300,000
Store supplies	300,000
Prepaid insurance	202,050
Prepaid rent	350,000
Furniture and fixtures	800,000
Accumulated depreciation-Furniture & fixtures		79,000
Motor truck	1,200,000
Accumulated depreciation-Motor truck
Accounts payable		50,000
Salary payable
Interest payable		28,000
Unearned sales revenue		205,000
Long term loan		2,500,000
Gregg's Capital		3,500,000
Gregg's withdrawals	125,000
Sales revenues		3,403,000
Sales discount	160,500
Sales returns & allowances	145,400
Cost of goods sold	1,055,000
Salaries expense	808,000
Insurance expense	202,050
Utilities expense	325,000
Rent expense	400,000
Depreciation expense=Furniture & Fixtures
Depreciation expense- Motor truck
Store supplies expense
Gain on disposal of Old Motor Truck		58,000
Bad-debt expense
Interest expense
	9,923,000	9,923,000

The following additional information is available at June 30, 2022:

(i) Store Supplies on hand at June 30, 2022 amounted to $159,500.

(ii) Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022

(iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.

(iv) The furniture and fixtures have an estimated useful life of 10 years and is being

depreciated on the straight-line method down to a residual value of $10,000.

(v) The motor truck was acquired on November 1, 2021, and is being depreciated

over 5 years on the double-declining balance method of depreciation, down to

a residue of $15,000

(vi) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022.

(vii) Accrued interest expense as of June 30, 2022, $65,000.

(viii) On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned.

(ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the

Allowance for Bad Debts should be $130,000.

(x) After making all other adjustments, a physical count of inventory was done, which

reveals that there was $1,295,500 worth of inventory on hand at June 30,2022

Other data:

(xi) The business is expected to make principal payments totalling $455,000 towards the

loan during the fiscal year to June 30 ,2023

Required:

a) Prepare the necessary adjusting journal entries on June 30, 2022.

[Narrations are not required]

b) Prepare the Adjusted Trial balance at June 30, 2022.

c) Prepare the companys multiple-step income statement for the period ending June 30, 2022

d) Prepare the companys statement of owners equity at June 30, 2022

e) Prepare the companys classified balance sheet at June 30, 2022