P3 -4B (Financial Statements, Adjusting and Closing Entries) The trial balance of Orange Center contained the following accounts at June 30, the end of the company's fiscal year. ORANGE CENTER TRIAL BALANCE JUNE 30, 2014 Debit Credit Cash $ 6.800 Accounts Receivable 49,800 Inventory 56,950 Supplies 5,600 Equipment 62,000 Accumulated Depreciation?Equipment 20.000 Notes Payable 41.000 Accounts Payable 32.500 Common Stock 1.000 Retained Earnings 61.700 Sales Revenue 506.800 Sales Returns and Allowances 13,000 Cost of Goods Sold 246,900 Salaries and Wages Expense 125,650 Advertising Expense 36,000 Utilities Expenses 6,890 Maintenance and Repairs Expense 9,810 Freight -out 16,800 Rent Expense 26,800 $663,000 $663.000 Adjustment data: I. Supplies on hand totaled $2,200. 2. Depreciation is $6,800 on the equipment. 3. Interest of $3,800 is accrued on notes payable at June 30. Other data: 1. Salaries and wages expense is 60% selling and 40% administrative. 2. Rent expense and utilities expense are 70% selling and 30% administrative. 3. $10,000 of notes payable are due for payment next year. 4. Maintenance and repairs expense is 100% administrative. Instructions (a) Journalize the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare a multiple -step income statement and retained earnings statement for the year and a classified balance sheet as of June 30,2014. (d) Journalize the closing entries. (e) Prepare a post -closing trial balance. P3 -4B (Financial Statements, Adjusting and Closing Entries) The trial balance of Orange Center contained the following accounts at June 30, the end of the company's fiscal year. ORANGE CENTER TRIAL BALANCE JUNE 30, 2014 Debit Credit Cash $ 6.800 Accounts Receivable 49,800 Inventory 56,950 Supplies 5,600 Equipment 62,000 Accumulated Depreciation?Equipment 20.000 Notes Payable 41.000 Accounts Payable 32.500 Common Stock 1.000 Retained Earnings 61.700 Sales Revenue 506.800 Sales Returns and Allowances 13,000 Cost of Goods Sold 246,900 Salaries and Wages Expense 125,650 Advertising Expense 36,000 Utilities Expenses 6,890 Maintenance and Repairs Expense 9,810 Freight -out 16,800 Rent Expense 26,800 $663,000 $663.000 Adjustment data: I. Supplies on hand totaled $2,200. 2. Depreciation is $6,800 on the equipment. 3. Interest of $3,800 is accrued on notes payable at June 30. Other data: 1. Salaries and wages expense is 60% selling and 40% administrative. 2. Rent expense and utilities expense are 70% selling and 30% administrative. 3. $10,000 of notes payable are due for payment next year. 4. Maintenance and repairs expense is 100% administrative. Instructions (a) Journalize the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare a multiple -step income statement and retained earnings statement for the year and a classified balance sheet as of June 30,2014. (d) Journalize the closing entries. (e) Prepare a post -closing trial balance
