Question
(P8-5B). From the following ledger balance and additional data below, complete the following for Callahan Lumber of Hinton : Check figure: Net Income $3,480 a.
(P8-5B). From the following ledger balance and additional data below, complete the following for Callahan Lumber of Hinton : Check figure: Net Income $3,480
a. Prepare the worksheet.
b. Prepare the Income statement, statement of owner's equity, and balance sheet.
c. Journalize and post adjusting and closing entries.(Be sure to put beginning balances in the ledger first.)
d. Prepare a post - closing trail balance.
e. Journalize the reversing entry for wages.
Account No.
110 cash $1140
111 Accounts receivable $1270
112 Merchandise Inventory $5600
113 Lumber Supplies 260
114 Prepaid Insurance 117
121 Lumber Equipment 2600
122 Accumulated Depreciation, Lumber Equipment 340
220 Accounts payable 1330
221 Accrued wages ------
330 J. Callahan , Capital 7562
331 J. Callahan, Withdrawals 3500
332 Income summary ------
440 Sales 23000
441 Sales return and allowances 400
550 Cost of goods sold 13715
660 Wages expense 2390
661 Advertising expense 400
662 Rent expense 840
663 Depreciation expense, lumber equipment -----
664 Lumber supplies expense -------
665 Insurance expense -------
A. Physical count of inventory, December 31 $4700
B. Lumber supplies on hand , December 31 80
C. Insurance expired 70
D, Depreciation for the year 460
E. Accrued wages on December 31 165
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