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Jordan Sales Company (organized as a corporation on April 1, 2017) has completed the accounting cycle for the second year, ended March 31, 2019. Jordan
Jordan Sales Company (organized as a corporation on April 1, 2017) has completed the accounting cycle for the second year, ended March 31, 2019. Jordan also has completed a correct trial balance as follows:
JORDAN SALES COMPANY Trial Balance At March 31, 2019 | ||||
Account Titles | Debit | Credit | ||
Cash | $ | 58,000 | ||
Accounts receivable | 49,000 | |||
Office supplies inventory | 1,000 | |||
Automobiles (company cars) | 34,000 | |||
Accumulated depreciation, automobiles | $ | 14,000 | ||
Office equipment | 3,000 | |||
Accumulated depreciation, office equipment | 1,000 | |||
Accounts payable | 22,000 | |||
Income taxes payable | 0 | |||
Salaries and commissions payable | 2,000 | |||
Note payable, long-term | 33,000 | |||
Capital stock (par $1; 33,000 shares) | 33,000 | |||
Paid-in capital | 5,000 | |||
Retained earnings (on April 1, 2018) | 7,500 | |||
Dividends declared and paid during the current year | 10,500 | |||
Sales revenue | 99,000 | |||
Cost of goods sold | 33,000 | |||
Operating expenses (detail omitted to conserve time) | 19,000 | |||
Depreciation expense (on autos and including $500 on office equipment) | 8,000 | |||
Interest expense | 1,000 | |||
Income tax expense (not yet computed) | ||||
Totals | $ | 216,500 | $ | 216,500 |
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