Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please i need some help Troy Freight Service provides delivery of merchandise to retail grocery stores in northern Manitoba. At the beginning of 2018, the

please i need some help image text in transcribed
image text in transcribed
Troy Freight Service provides delivery of merchandise to retail grocery stores in northern Manitoba. At the beginning of 2018, the following account balances were available: 24,600 Cash Accounts Receivable Supplies Prepaid Advertising Building (Warehouse) Accumulated Depreciation (Warehouse) Equipment 2,190,000 Accumulated Depreciation (Equipment) Land Accounts Payable Wages Payable Notes Payable (due in 2022) Common Shares Retained Earnings, 12/31/2017 $ 580,000 304,975 17,600 30,200 1,000,000 1,400,000 462,375 280,000 795,000 During 2018 the following transactions occurred: a. Troy performed deliveries for customers, all on credit, for $2,256,700. Troy also made cash deliveries for $686,838. b. There remains $286,172 of accounts receivable to be collected at December 31, 2018. C. Troy purchased advertising of $138,100 during 2018 and debited the amount to prepaid advertising. d. Supplies of $27,200 were purchased on credit and debited to the supplies account. e. Accounts payable at the beginning of 2018 were paid early in 2018. There remains $5,600 of accounts payable unpaid at year-end. f. Wages payable at the beginning of 2018 were paid early in 2018. Wages were earned and paid during 2018 in the amount of S666,142. g. During the year, Irene Hurd, a principal shareholder, purchased an automobile costing $42,000 for her personal use. h. One-half year's interest at 6% annual rate was paid on the note payable on July 1, 2018. i. Property taxes were paid on the land and buildings in the amount of $170,000. j. Dividends were declared and paid in the amount of $25,000. The following data are available for adjusting entries: Supplies in the amount of $13,685 remained unused at year-end. Annual depreciation on the warehouse building is $70,000. Annual depreciation on the warehouse equipment is $145,000. . Wages of $60,558 were unrecorded and unpaid at year-end. . Interest for six months at 6% per year on the note is unpaid and unrecorded at year-end. Advertising of $14,874 remained unused at the end of 2018. Income taxes of $482,549 related to 2018 are unpaid at year-end. Required: 1. Post the 2018 beginning balances to T-accounts. Prepare journal entries for transactions a through j and post the journal entries to T-accounts, adding any new T-accounts you need. 2.Prepare the adjustments and post the adjustments to the T-accounts, adding any new T- accounts you need. 3. Prepare a statement of earnings. 4. Prepare a statement of retained earnings. 5. Prepare a classified statement of financial position. 6. Prepare closing entries

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley Federal Government Auditing Laws Regulations Standards Practices And Sarbanes Oxley

Authors: Cornelius E. Tierney, Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, Kearney & Company

1st Edition

0471740489, 978-0471740483

More Books

Students also viewed these Accounting questions