MWP Company is a sporting goods retailer with a December 31 year end. In the files section on Canvas there are files for the project ledger, project journal, the trial balance at December 23 along with templates for other trial balances and financial statements. Below you will be given the transactions for the last week of 2022 and the information for any required adjusting entries for 2022 . You are to do the following: - Journalize and post the remaining 2022 transactions - Prepare a trial balance at December 31, 2022 - Journalize and post the required adjusting entries - Prepare an adjusted trial balance at December 31, 2022 - Prepare a multi-step income statement for 2022 - Prepare a statement of retained earnings for 2022 - Prepare a classified balance sheet for December 31, 2022 - Journalize and post the necessary closing entries at December 31, 2022 - Prepare a post-closing trial balance Remaining December transactions: Dec. 24 Paid employees for the previous two weeks work, $3,000 Dec 26 Paid $4,900 to ABC Company for inventory purchased on December 15 , the inventory had a list price of $5,000 and the terms were 2/15, n/30 Dec 28 Sold merchandise to LZ Company for $6,000 cash. The merchandise cost $4,200. Dec 29 Purchased $800 of office supplies for cash Dec 29 Received payment from customer for sale of merchandise on December 20 . The sales price was $1,500 and the terms were 2/10, n/30 Dec 30 Sold merchandise to Yes Company for $7,000 on account. The terms are 2/15,n/45. The merchandise cost $5,000. Dec 31 Purchased $7,000 of merchandise inventory from ABC Company. The terms are 3/10,n/30. Information for year-end adjusting entries: - On December 31 , there are $1,000 of office supplies on hand - On December 31, MWP has delivered $4,500 of the merchandise custhomers had paid for in advance during the year. This merchandise cost MWP $2,800. - MWP borrowed the $60,000 on October 1,2022 . MWP must make annual interest payments each September 30 and pay the full note on September 30,2025 . The interest rate on the note is 6%. - Employees have earned $2,700 in wages for work done since the last payday (December 24) - The prepaid rent was paid on July 1, 2022, and covers a one-year period starting on July 1,2022. - The Building has a twenty-year life and a $10,000 salvage value. - The Equipment has a five-year useful life and no salvage value. - December utilities are $290 and will be paid in January - MWP estimates its bad debts at 5% of its accounts receivable balance. Check Figures: December 31 Trial Balance Debits and Credits =$556,370 December 31 Adjusted Trial Balance Debits and Credits =$581,055 Net Income =$7,275 Total Assets =$200,475 Post-Closing Trial Balance Debits and Credits =$316,370 MWP Company is a sporting goods retailer with a December 31 year end. In the files section on Canvas there are files for the project ledger, project journal, the trial balance at December 23 along with templates for other trial balances and financial statements. Below you will be given the transactions for the last week of 2022 and the information for any required adjusting entries for 2022 . You are to do the following: - Journalize and post the remaining 2022 transactions - Prepare a trial balance at December 31, 2022 - Journalize and post the required adjusting entries - Prepare an adjusted trial balance at December 31, 2022 - Prepare a multi-step income statement for 2022 - Prepare a statement of retained earnings for 2022 - Prepare a classified balance sheet for December 31, 2022 - Journalize and post the necessary closing entries at December 31, 2022 - Prepare a post-closing trial balance Remaining December transactions: Dec. 24 Paid employees for the previous two weeks work, $3,000 Dec 26 Paid $4,900 to ABC Company for inventory purchased on December 15 , the inventory had a list price of $5,000 and the terms were 2/15, n/30 Dec 28 Sold merchandise to LZ Company for $6,000 cash. The merchandise cost $4,200. Dec 29 Purchased $800 of office supplies for cash Dec 29 Received payment from customer for sale of merchandise on December 20 . The sales price was $1,500 and the terms were 2/10, n/30 Dec 30 Sold merchandise to Yes Company for $7,000 on account. The terms are 2/15,n/45. The merchandise cost $5,000. Dec 31 Purchased $7,000 of merchandise inventory from ABC Company. The terms are 3/10,n/30. Information for year-end adjusting entries: - On December 31 , there are $1,000 of office supplies on hand - On December 31, MWP has delivered $4,500 of the merchandise custhomers had paid for in advance during the year. This merchandise cost MWP $2,800. - MWP borrowed the $60,000 on October 1,2022 . MWP must make annual interest payments each September 30 and pay the full note on September 30,2025 . The interest rate on the note is 6%. - Employees have earned $2,700 in wages for work done since the last payday (December 24) - The prepaid rent was paid on July 1, 2022, and covers a one-year period starting on July 1,2022. - The Building has a twenty-year life and a $10,000 salvage value. - The Equipment has a five-year useful life and no salvage value. - December utilities are $290 and will be paid in January - MWP estimates its bad debts at 5% of its accounts receivable balance. Check Figures: December 31 Trial Balance Debits and Credits =$556,370 December 31 Adjusted Trial Balance Debits and Credits =$581,055 Net Income =$7,275 Total Assets =$200,475 Post-Closing Trial Balance Debits and Credits =$316,370
