Question
Need help on where to start on this. Need journal entries. JOHNSON Company is a bike retailer with a December 31 year end. In the
Need help on where to start on this. Need journal entries.
JOHNSON Company is a bike retailer with a December 31 year end. In the Project Module 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. 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 workers for the previous two weeks work, $4,200
Dec 26 Paid $6,860 to KP Company for inventory purchased on December 15, the inventory had a list price of $7,000 and the terms were 2/15, n/30
Dec 28 Sold merchandise to MF Company for $8,000 cash. The merchandise cost $5,900.
Dec 29 Purchased $600 of office supplies for cash
Dec 29 Received payment from AW Company for sale of merchandise on December 16. The sales price was $2,500 and the terms were 2/10, n/30.
Dec 30 Sold merchandise to APC Company for $10,000 on account. The terms are 3/15, n/45. The merchandise cost $7,500.
Dec 30 Wrote off WHY Companys account as uncollectible. The sale to WHY occurred on June 20, 2022. The amount of the sale was $3,000 and the terms were n/30.
Dec 31 Purchased $9,000 of merchandise inventory from MSPC Company. The terms are 2/10, n/45.
Information for year-end adjusting entries:
- On December 31, there are $800 of office supplies on hand
- JOHNSON borrowed the $120,000 on July 1, 2022. JOHNSON must make annual interest payments each September 30 and pay the full note on September 30, 2025. The interest rate on the note is 7%.
- Employees have earned $1,400 in wages for work done since the last payday (December 24)
- The prepaid rent was paid on April 1, 2022, and covers a one-year period starting on April 1, 2022.
- JOHNSON paid $2,100 for a one-year insurance policy on August 1, 2022. Coverage began on that date.
- The Building has a twenty-five year useful life and a $10,000 salvage value.
- The Equipment has an eight-year useful life and no salvage value.
- JOHNSON uses straight-line to depreciate its plant assets.
- December utilities are $480 and will be paid in January
- JOHNSON estimates its bad debts at 1% of its sales.
Check Figures:
December 31 Trial Balance Debits and Credits = $1,010,560
December 31 Adjusted Trial Balance Debits and Credits = $1,042,267
Net Income = $2,068
Total Assets = $402,258
Post-Closing Trial Balance Debits and Credits = $524,985
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