Need Assistance on Closing Entries. If more info is needed please let me know
| Trial Balance |
| | | |
| Particulars | Debit | Credit |
| | | |
| | | |
| Cash/Bank | $ 441,730.00 | |
| Notes recievable | $ - | |
| Accounts recievable | $ 78,866.00 | |
| Interest Received | | $ 410.00 |
| Doubtfull debts | | $ 2,930.00 |
| Bad debts | $ 11,134.00 | |
| Inventories | $ 65,000.00 | |
| Prepaid utilities | $ 18,000.00 | |
| Utilities Expense | $ 12,000.00 | |
| office supplies | $ - | |
| Supplies expense | $ 8,000.00 | |
| Prepaid insurance | $ - | $ 4,260.00 |
| Rent | $ 29,800.00 | |
| Prepaid rent | $ 5,000.00 | |
| Investment in securities | $ 180,000.00 | |
| Land for future development | $ 60,000.00 | |
| land | $ 175,000.00 | |
| building | $ 800,000.00 | |
| accumulated depreciation | | $ 320,000.00 |
| Capitalized Development | $ 15,000.00 | |
| Goodwill | $ 120,000.00 | |
| other Intangible assets | $ 48,000.00 | |
| Notes Payable | | $ 250,000.00 |
| Accounts Payable | | $ 160,000.00 |
| Unearned revenue | | $ 12,000.00 |
| Property Tax payable | | $ - |
| Interest payable | | $ 6,250.00 |
| Interest expense | $ 10,250.00 | |
| Income tax payable | | $ - |
| Income Tax | $ 12,500.00 | |
| Property Tax | $ 6,600.00 | |
| Salary expense | $ 120,000.00 | |
| Salary and wages payable | | $ 15,000.00 |
| Utilities Payable | | $ - |
| Provisions related to Pension | | $ 93,100.00 |
| Bonds Payable | | $ 300,000.00 |
| Common stock | | $ 240,000.00 |
| Common stock(Paid up) | | $ 126,000.00 |
| Prefered stock | | $ 97,000.00 |
| Preference stock (Paid Up) | | $ 7,400.00 |
| Retained earnings | | $ 180,500.00 |
| Dividend payable | | $ - |
| Other comprehensive income | | $ 5,000.00 |
| Treasury stock | $ 10,000.00 | |
| Revenue account | $ 11,000.00 | |
| Insurance | $ 4,800.00 | |
| | | |
| Purchase | $ 430,000.00 | |
| Purchase return | | $ 3,000.00 |
| Sales | | $ 936,000.00 |
| Sales return | $ 6,000.00 | |
| Sales discount | $ 7,280.00 | |
| Purchase discount | | $ 7,110.00 |
| Depreciation expense | $ 80,000.00 | |
| | | |
| | $ 2,765,960.00 | $ 2,765,960.00 |
| | |
The 2019 Balance Sheet of the Victoria Co. is as follows: Victoria Co. Balance Sheet As of December 31, 2019 150,000 125,000 1,000 Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful A/Cs Inventories Office Supplies Prepaid Insurance Prepaid Rent Total Current Assets Long-term Investments Investments in securities Land for future development Property, Plant, and Equipment Land Buildings Less: Accu. Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Intangible Assets Total Non-Current Assets Total Assets 85.000 Notes Payable 34,590 Accounts Payable 35,000 Unearned Revenue (2,930) Property Tax Payable 65,000 Interest Payable 0 Income Tax Payable 540 Salary and Wages Payable 4,800 Utilities Payable 222,000 Total Current Liabilities Provisions Related to Pensions 180,000 Bonds Payable 60,000 Total Non-Current Liab. Total Liabilities 145,000 Common Stock 800,000 Paid-in-capital - Common Stock (240.000) Preferred Stock Paid-in-capital - Preferred Stock 15,000 Retained Earnings 120,000 Accu. Other Comp. Income 48,000 Less: Treasury Stock 1,128,000 Total Shareholders' Equity 1,350,000 Total Liab, and Total Equity 3,500 13,000 6,500 12,000 311,000 93.100 300,000 393,100 704,100 240,000 96.000 97,000 7,400 210,500 5.000 (10,000) 645,900 1,350,000 During 2020, the following events occurred in the company. Additional information available at the end of 2020 is as follows: 1) On January 8, received checks, $20,000 from Kent and $15,000 from Montana, for sales on account made in December 2019 after discount period has lapsed. 2) On January 15, paid cash $125,000 to Hermann for merchandise purchased last year after discount period has lapsed. 3) On January 18, received checks, $34,590 for outstanding note receivable and associated interest of $410 4) On January 25, paid off the utilities bill of $12,000 and income tax of 13,000, and wages payable of 6,500 5) On January 26, purchased merchandise on account from Charles $90,000 and Georgia 120,000. Terms 3/10, 1/30, F.O.B. destination. 6) On February 4, send checks to Charles for 90,000 less 2% cash discount, and to Georgia for $120,000 less 3% cash discount. 7) On February 13, sold merchandise on account to Franklin $110,000 and Thompson $150,000. Terms 2/10, n/30, F.O.B. shipping point. 8) On February 15, issued credit of $6,000 to Franklin for the merchandise returned. 9) On February 20, received payment in full from Franklin and Thompson before discount period has lapsed. 10) On February 28, the prepaid rent balance was expired. 11) On March 1, paid off notes payable $150,000 (issued in 2019) and associated interest of $7,500 (including $3,500 interest payable on the balance sheet). 12) On March 1, paid rent of $30,000 for one-year term starting from March 1, 2020 13) On April 15, paid $8,000 cash for office supplies. The company expenses all of the supplies purchased during the year. 14) On June 5, declared cash dividends totaling $30,000 15) On June 30, paid cash dividends totaling $30,000 to stockholders. 16) On July 1, issued a note of $250,000 to bank (one year, annual interest rate 5%) for cash. 17) On July 15, the company CEO paid $80,000 from her savings bank account to purchase a car for personal use. 18) On August 1, issued common stock 3,000 shares, $10 par, in exchange of a land with a fair market value of $80,000. 19) On September 8, paid utilities expense, $12,000 20) On October 7. sold merchandise to Utah on account $220,000, term 1/10 n/30, FOB shipping point. 21) On October 16, Utah paid off its balance 22) On November 9, purchased merchandise from Pensacola $60,000 terms 3/10, 1/30 23) On November 12, returned $3,000 of merchandise to Pensacola and received credit 24) On November 18, paid off the balance to Pensacola. 25) On December 27, 2020, the company paid the 2020 federal income tax of $12,500 and 2020 property tax of $6,600 26) On December 28, sold merchandise to Kent on account $90,000, term 1/10, n/30, FOB shipping point. 27) On December 29, purchased merchandise from Hermann $160,000, terms 3/10,n/30. 2a) Over the year, daily cash sales were $1,000 on average per day. 29) Over the year, sales and office employees earned $120,000 in salaries and wages, of which $15,000 remained as payable at the end of year. 30) Depreciation expense for the year was $80,000 31) The utilities bill of $18,000 as of December 31, 2020 is due in January 2021. 32) The balance of uneamed revenues was increased by $12,000 during 2020 33) Based on its historical data, the bad debts are about 2% of net credit sales (credit sales minus sales discounts and sales returns in the year of 2020) Additional information available at the end of 2020 is as follows: 1) No insurance policy was effective during the year. 2) After physical counting, the company decided that the ending inventory was $60,000. 3) Charles, Georgia, Pensacola, Franklin, Thompson, and Utah had zero balance on account as of Jan 1, 2020 4) The company uses the gross method to record its purchases and sales on credit 5) The company adopts the periodic inventory system. In order to report the purchase activities the firm used the purchases, purchases discounts, and purchase returns & allowances accounts. General Journal Date Credit Accounts Titles Bank A/C To Accounts Receivable Debit 35,000 8-Jan 35,000 125,000 125,000 35,000 34,590 410 12,000 13,000 6,500 31,500 210,000 90,000 120,000 90,000 120,000 204,600 5,400 110,000 150,000 260,000 6,000 15-Jan Accounts Payable A/c To Cash A/C 18-Jan Bank A/C To Notes Receivables A/C To interest Received A/C 25-Jan Utilities Payable A/C Income Tax Payable A/C Salaries and Wages Payable A/C To Cash A/C 26-Jan Purchases A/C To Accounts Payable A/c (Charles) To Accounts Payable A/c (Georgia) 4-Feb Accounts Payable A/c (Charles) Accounts Payable A/c (Georgia) To Cash A/C To Purchase Discount A/C 13-Feb Accounts Receivable A/c (Franklin) Accounts Receivable A/c (Thompson) To Sales A/C 15-Feb Sales Return A/C To Accounts Receivable (Franklin) 20-Feb Cash A/C Sales Discount A/C To Accounts Receivable (Franklin) To Accounts Receivable A/c (Thompson) 28-Feb Rent A/C To Prepaid Rent A/C 1-Mar Notes Payables A/C Interest Expenses A/c Interest Payable A/C To Cash A/C 1-Mar Rent A/C Prepaid Rent A/C To Cash A/C 15-Apr Office Supplies A/C To Cash A/C 15-Apr Supplies Expense A/C To Office Supplies A/c 5-Jun Retained Earnings A/C To Dividend Payable A/C 6,000 248,920 5,080 104,000 150,000 4,8001 4,800 150,000 4,000 3,500 157,500 25,000 5,000 30,000 8,000 8,000 8,000 8,000 30,000 30,000 30,000 30,000 250,000 250,000 30,000 30,000 12,000 12,000 30-Jun Dividend Payable A/C To cash A/C 1-Jul Cash A/C To Notes Payable A/C 15-Jul No Enrty 1-Aug Land A/C To Common Stock A/C 8-Sep Utilities Expense A/C To Cash A/C 7-Oct Accounts Receivable A/c (Utah) To Sales A/C 16-Oct Cash A/C Sales Discount A/C To Accounts Receivable (Utah) 9-Nov Purchases A/C To Accounts Payable (Pensacola) 12-Nov Accounts Payable (Pensacola) To Purchase Return A/C 220,000 220,000 217,800 2,200 220,000 60,000 60,000 3,000 3,000 57,000 55,290 1,710 12,500 6,600 19,100 90,000 18-Nov Accounts Payable (Pensacola) To Cash A/C To Purchase Discount A/C 27-Dec Income Tax A/C Property Tax A/C To Cash A/C 28-Dec Accounts Receivable (Kent) To Sales A/C 29-Dec Purchases A/C To Accounts Payable (Harmann) 31-Dec Cash A/C To Sales A/C 31-Dec Salary A/C To Salaries Payable A/C To Cash A/C 90,000 160,000 160,000 366,000 366,000 120,000 15,000 105,000 80,000 31-Dec Depreciation A/C To Accumulated Depreciation A/C 80,000 18,000 31-Dec Prepaid Utilities A/C To Cash A/C 18,000 12,000 31-Dec Revenue A/C To Unearned Revenue A/C 12,000 6,250 31-Dec Interest Expense A/C To Interest Payable A/C 6,250 1,000 31-Dec Unearned Revenue A/C To Revenue A/C 1,000 4,800 31-Dec Insurance A/C To Prepaid Insurance A/C 4,800 11,134 31-Dec Bad Debt A/c To Accounts Receivable 11,134 Closing Entries Date Account Titles Debit Credit
