Practice: Prepare the following
1. Prepare the following, December 31, 2019 financial statements: a. Income Statement b. Retained Earnings Statement c. Balance Sheet Note: The December 31, 2019 adjusted trial balance is provided below. 2. Prepare the fiscal year end closing entries. 3. Prepare the January 1, 2020 opening trial balance. 4. Prepare the journal entries for the first six months of 2020. Note: The owners provided a written summary of activities they believe accounting entries need to be prepared (see page 3) 5. The owners would like to know the current (as of 6/30/20) cash and inventory balance. They would like you to provide a "T" account showing the activity in each account. Express Zaple Adjusted Trial Balance December 31, 2019 Credit $ Debit 184,000 15,000 $ 100 23,000 72,000 22,000 Account Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Equipment - Packaging Equipment - Office Accumulated Depreciation: Equipment - Packaging Accumulated Depreciation: Equipment - Office Accounts Payable Interest Payable SBA Loan (Long-Term) Common Stock Par 0.01 Additional Paid-In Capital Retained Earnings Dividends Sales (Revenue) Cost of Goods Sold (COGS) Selling Expense Administrative Expense Income Tax Expense 7,200 2,200 72,500 10,000 110,000 2,800 97,200 265,000 86,000 65,000 85,000 15,000 567,000 $ $ 567,000 Jan. 5, 2020 Received customer payment of $15.000 Jan 20, 2020 Soldo S40,000 non-interesting bearing note to U.S. Bank Corporation. Received $38,000 cash. Note is due on January 19, 2021. Jan. 29, 2020 Purchased $65,000 inventory on account. Jan. 30, 2020 Paid $65,000 to suppliers for previous purchases of inventory. Jan. 31, 2020 Paid monthly salaries to sales stoff (54,500) and administrative stoff (55,000). Feb. 15, 2020 Paid for various supplies etc. (company policy to expense as incurred). Selling department supplies $3,200 Administrative department supplies $2,100 Feb. 28, 2020 Paid monthly salaries to sales staff ($4,500) and administrative staff (55,000). March 5, 2020 Paid $10,000 to suppliers for previous purchases of inventory. March 10, 2020 Sold S$7,000 of product on account to Meats Pizza. Cost of the product sold was $24,000 March 31, 2020 Paid monthly salaries to sales stoff ($4,500) and administrative staff (55,000). April 10, 2020 Received customer payment of $47,000 April 20, 2020 Paid $39,000 to suppliers for previous purchases of inventory. April 30, 2020 Paid monthly salaries to sales staff ($4.500) and administrative stoff ($5,000). May 2, 2020 Pald sales commission of $14,000 due to sales staff May 3, 2020 Paid for various supplies etc. (company policy to expense as incurred). Selling department supplies $1,650 Administrative department supplies $1,150 May 5, 2020 Sold $63,000 of product to Target Pizza. Cost of the product sold was 548.000 May 31, 2020 Paid monthly salaries to sales stof ($4.500) and administrative stoff ($5.000. June 5, 2020 Purchased $50,000 inventory on account June 10, 2020 Paid $40,000 to suppliers for previous purchases of inventory. June 14, 2020 Sold $66,000 of product on account to Picky Pizza. Cost of the product sold was $38,000 June 30, 2020 Paid monthly salaries to sales stoff (54.500) and administrative stoff (55.000)
