Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20x1.the firm's general ledger contained the accounts

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 20x1.the firm's general ledger contained the accounts and balances that follow. ACCOUNTS AND BALANCES Cash $31.000 Or Accounts Receivable 36,100 Or Allowance for Doubtful Accounts 518 Cr Merchandise Inventory 16,900 Dr Supplies 13.300 Or Prepaid Insurance 6,488 Dr office Equipment 8.700 or Accumulated Depreciation office Equipment 2,748 cm Warehouse Equipment 33,400 Dr Accumulated Depreciation Warehouse Equipent 11,400 Cr Notes Payable-bank 36,500 CF Accounts Payable 33,100 Cr Interest Payable Social Security Tax Payable 1,770 Cr Medicare Tax Payable 307 Cr Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Phillip Tucker. Capital 123,385 Cr Phillip Tucker. Drawing 60,500 or Sales f162.778 CM Sales Returns and Allowances 10,000 Dr Purchases 354,500 Dr Purchases Returns and Allowances 10,100 C Income Summary Rent Expense 36,000 or Telephone Expense 3,100 Dr Salarint Expense 169,000 Dr Payroll Taxes Expense 13,00 De Supplies Expense Insurance Expense 36,900 Dr 3,100 or 160,000 Dr 13,900 Dr Incose suwiry Rent Expense Telephone Expense Salaries Expanse Payroll Taxes Expense Supplies Expense Insurance Expense Depreciation Expense-office Equipment Depreciation Expense-Warehouse Equipment Uncollectible Accounts Expense Interest Expense ADJUSTMENTS a.-b. Merchandise inventory on December 31, 20x1, is $78,900. c. During 20xt, the firm had not credit sales of $569,000, past experience indicates that 0.50 percent of these sales should result in uncollectible accounts d. On December 31, 20x1, an inventory of supplies showed that items costing $1270 were on hand. e. On May 1, 20x1, the firm purchased a one-year insurance policy for $6.480. Three years ago the firm purchased office equipment for $8.700. At that time, the equipment was estimated to have a useful of six years and a salvage value of $480, 9. Three years ago the firm purchased warehouse equipment for $33,400. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $4.900 h. On November 1, 20x1, the firm issued a four month, 12 percent note for $36,500 1. On December 31, 20x1, the firm owed salaries of $14,000 that will not be paid until 20X2 1 On December 31, 20x1, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 145 percent) on the entire $14,000 of accrued wages k. On December 31, 20xt, the firm owed the federal unemployment tax assume 06 percent) and the state unemployment tax (assume 5.4 percent) on the entire $14,000 of accrued wages Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20XL Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20x1 2. Enter the adjustments above in the Adjustments section of the worksheet 3. Complete the worksheet Analyze: When the financial statements for Healthy Eating Foods Company are prepared, what net income will be reported for the period ended December 31, 2012 Complete this question by entering your answers in the tabs below. Worksheet Analye Complete the worksheet. (Enter both the debit and credit effects wherever required. Round intermediate calculations and final answers to decimal places) Healthy Eating Foods Company Worksheet Year Ended December 31, 20X3 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Trial Balance Debat Credit Income Statement Debit Credit Balance Sheet Debit Cred Account Name Cash Accounts Receivable Allowing for Doubtful Accounts Merchandise Inventory A won Det C Complete the worksheet (Enter both the debit and credit effects wherever required found intermediate calculations and finalwers to decimales Healthy Eating Foods Company Worksheet Year Ended December 31, 20X1 Trial Balance Adjustments Adjusted Trial Balance Income Set Account Name Debit Gret Debit Credit Debit Credit Cash Accounts Receivable Allowance for Double Accounts Merchandise inventory Supplies Prepaid Insurance Office Equipment Accumond Depreciation Office Equipment Warehouse Equipment Accumulated Depreciation Warehouse unt Notes Payale-Bank Accounts Payable Interest Payable Soci Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable SE! NA - Acond Depremon-office Equipment Warehouse Equipment Accumulated Depreciation Warehouse Equipment Notes Payable-Bank Accounts Payabi Interest Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payotte Philip Tucker, Capital Philip Tucker, Drawing Sales Sales Returns and Allowances Purchases Purchases Returns and Allowances come Summary Rent Expense Telephone Expense Salones Expense Payroll Taxes Expense Supplies Expense Insurance Expense Depreciation Expense Office Equipment ARTIS Purchases Purchases Returns and Allowances income Summary Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Supplies Expense Insurance Expense Depreciation Expense-Office Equipment Depreciation Expense-Warehouse Equipment Uncollectible Accounts Expense Interest Expense Totals Net Income Analyze ) ering your answers in the tabs below. oth the debit and credit effects wherever required. Round intermediate calculations and final answers to 2 decimal places) Healthy Eating Foods Company Worksheet Year Ended December 31, 20x1 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accountancy Analysis Of Financial Statements Analysis Of Financial Statements

Authors: M. Hanif, A. Mukherjee

1st Edition

1642879762, 9781642879766

More Books

Students also viewed these Accounting questions