Need help with the adjusted trial balance and balance sheet
A B C G H L M N 0 P 1 AIMES CORPORATION Balance Sheet December 31, 2016 Cash Inventory Prepaid Insurance Equipment 50,000 61,500 11,200 76,000 208,700 Total Assets 9 10 11 12 13 Accounts payable Interest payable Bonds payable Common wock Retained earnings 27,500 5,000 100,000 50,000 26,200 208, 700 15 16 Total abilities 18 19 During 2017, the following transactions occurred. Aimes uses a perpetual inventory system. 20 1.J Aimes paid $5,000 interest on the bonds on January 1, 2017 21 2.) Aimes purchased $482,200 of inventory on account 22 ) Almes sold for $960,000 cash inventory which cost $265,000. Almes also collected $28,800 sales tax 23 4.) Aimes pald $460,000 on accounts payable 14 5.) Almes pwd 55,000 interest on the bonds on July 1, 2017 ES 6.) The prepaid insurance ($11,200) expired on My 31 67.) on August 1, Almes paid $20,400 for insurance coverage from August 1, 2017, through July 31, 2018 27 ) Almes paid $34 000 sales taxes to the state. 8) Pald other operating expenses $182.000 9 10 ) Redeemed the bonds on December 31, 2017, by paying $96,000 plus $5,000 interest 011.) sued $180,000 of 8% bonds on December 31, 2017 at 103. The bonds pay interest every lune 30 and December 31 2 Adjustment data: 31.) Recorded the insurance expired from item 7. 42. The equipment was acquired on Devember 31, 2016, and will be depreciated on a straint-line basis over 5 years with a $3,000 salvage value S 3.) The income tax rate is 30%. (Hint: Prepare the income statement to income before taves and multiply by 30% to compute the amount) This needs to be included in your adjust trial balance 6 7 Instructions 8 1.) Prepare T-Accounts to determine ending balances 2.) Prepare journal entries for the transactions listed above and adjusting entries. 3.) Prepare an adjusted trial balance at December 31, 2017 14) Prepare an income statement and a retained earnings statement for the year ending December 31, 2017 and a dassified balance sheet as of December 31, 2017 Balance Sheet Journal Entries Ad Trail Balance Income Statement Question 1 T-accounts Retired Earnings Stm Ready A D F G H 1 Credit 2 3 4 AIMES CORPORATION 5 Adjusted Trial Balance 6 December 31, 2017 7 8 Debit 9 Cash 42 10 Inventory 11 Prepaid Insurance 12 Equipment 13 Accumulated Depreciation 14 Accounts payable 15 Sales tax payable 16 Interest payable 17 Bonds payable 18 Premium on bonds payable 19 Income Tax payable 20 Common stock 21 Retained earnings 22 Revenue 23 Gain on Redemption of bonds 24 Cost of Good sold 25 Interest Expense 26 Insurance Expense 27 Depreciation Expense 28 Other Operating Expense 29 Income Tax Expense 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 alance Incomi
