Introduction to Financial Accounting Assignment # 2 Page | 3 Greggs Shipping Supplies Ltd- St Lucia Branch Trial Balance as at June 30, 2022 A/C Name DR CR Cash 400,000 Accounts receivable 420,000 Allowance for bad debt 33,000 Merchandise Inventory 1,000,000 Store Supplies 120,000 Prepaid Insurance 115,500 Prepaid rent 177,500 Furniture and fixtures 600,000 Accumulated depreciation-Furniture and Fixtures 118,000 Motor Truck 1,200,000 Accumulated depreciation Motor Truck Accounts payable 33,000 Salary payable Interest payable 45,000 Unearned Sales revenue 185,000 Long-term loan 750,000 Gregg's, Capital 1,700,000 Gregg's, Withdrawals 95,000 Sales revenue 3,592,000 Sales discount 102,000 Sales returns and allowances 98,000 Cost of goods sold 850,000 Salaries expense 455,000 Insurance Expense 165,000 Utilities Expense 365,000 Rent Expense 319,500 Depreciation Expense Furniture & Fixtures Depreciation Expense Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck 26,500 Bad-Debt Expense Interest Expense 6,482,500 6,482,500 Trial Balance ACCT1002 Introduction to Financial Accounting Assignment # 2 Page | 4 The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $98,400. (ii) Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 (iii) Rent was prepaid on April 1, 2022, for 5-months to August 2022. (iv) The furniture and fixtures have an estimated useful life of 5 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 March 31, 2022, and is being depreciated over 10 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 $48,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $45,000. (viii) On June 30, 2022, $99,000 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 $70,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 ACCT1002 Introduction to Financial Accounting Assignment # 2 Page | 5 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