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Please Help! Account Title Debit Credit Cash 71000 Accounts Receivable 24100 Allowance for Doubtful Accounts 2700 49300 12500 6000 Inventory Supplies Prepaid Insurance Office Equipment
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Account Title Debit Credit Cash 71000 Accounts Receivable 24100 Allowance for Doubtful Accounts 2700 49300 12500 6000 Inventory Supplies Prepaid Insurance Office Equipment Accumulated Depreciation - Accounts Payable 52000 16000 18000 Unearned Revenue 3000 42000 4500 Notes Payable Capital Stock Additional Paid in Capital Retained Earnings Dividends Paid 71000 29000 5000 Sales 137000 Cost of Goods Sold 63000 22000 9000 Wages Expense Rent Expense Insurance Expense Depreciation Expense - 4500 4800 The trial balance above reflects all of the transactions for the year for ABC Company except for the following information that either happened or needed adjusting entries on the last day of the year. All of the amounts in the above trial balance have a normal balance. The prepaid insurance of $6,000 was purchased on October 1 and will last for 12 months. 200 Inventory items that each cost $15 were found to be completely obsolete and will need to be scrapped. The allowance for bad debts is determined to be 20% of the accounts receivable. The $3,000 of unearned revenue was received from a customer with the agreement to provide special inventory to the customer. Half of that inventory has been delivered by year end and been taken out of inventory already. A piece of office equipment that originally cost $2,500 was sold for $300. This equipment had accumulated $2,400 of depreciation. An annual payment of $3,300 is due on the note payable on January 1 of the next year. No interest or payment has been recorded since the beginning of the current year. The interest rate on the loan is 4% per year. There were 10,000 shares issued and outstanding for the entire year. Using this information, please prepare and income statement, statement of stockholders' equity and balance sheet for the year. Using these statements answer the following questions: 1) What was ending total stockholders' equity? 2) What is the gross profit for the year? 3) What is the earnings per share for the year? 4) What was ending total current assets for the year? 5) What was the ending total liabilities for the yearStep by Step Solution
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