Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kuo likes woodwork so he established a company called Kuo Woodworks. The company has the following account balances on its December 31, 2021 trial
Kuo likes woodwork so he established a company called Kuo Woodworks. The company has the following account balances on its December 31, 2021 trial balance. Kuo Woodworks Trial Balance At December 31, 2021 Debit Credit Cash 1,000 Accounts Receivable 750 Inventory 500 Investments 1,750 Property, Plant, and Equipment, net 2,500 Accounts Payable 900 Income Tax Payable 250 Unearned Revenue 400 Notes Payable 2,000 Common Stock 2,000 Additional Paid-In Capital 500 Retained Earnings Total 450 6,500 6,500 During the year 2022, the following transactions occurred: a. On March 30, the company delivered the last of three tables for which it received cash in advance in 2021. That is the company has now earned the balance on its unearned revenue. b. On April 1, the company bought a new sawmill for $5,000. This sawmill will be used evenly over ten years. This sawmill was financed entirely by issuing 2,500 shares at $2 on the same date. c. On June 10, the company purchased $6,000 worth of lumber from its suppliers on credit. Note lumber will be the inventory of this company. d. On July 8, the company delivered classroom chairs to Simon Hall Inc. for $4,000 and received cash immediately. The cost of the chairs were $2,400. e. On July 30, the company paid salaries for $2,000 cash. f. On August 15, the company sold tables costing $4,000 to Bed & Bath Inc. for $7,000 on credit. g. On September 31, the company received a prepayment of $10,000 cash from JenPug Corps to deliver five customized pug beds over the next five months. Kuo Woodworks will deliver one of the customized beds every month. h. On October 1, the company paid $3,600 cash for fire insurance coverage for the next 12 months. This coverage is evenly provided throughout the period. i. On November 5, the company received $5,000 cash from Bed & Bath Inc. j. On November 30, the company paid $5,000 of its accounts payable by cash. k. On December 5, the company paid $1,000 of its notes payable. 1. On December 31, the company owes Captain Foodie Inc. $2,000 for catering services provided to Kuo Woodworks staff during the year 2022. m. There was no interest income on the investments during the year 2022. n. The property, plant, and equipment (excluding the newly bought sawmill) depreciated by $500 during the year ended 2022. Question: Prepare the adjusted trial balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started