Question
Prepare a December adjusted trial balance XYZ Company's December 31, 2015, trial balance is as follows: XYZ Company Trial Balance December 31, 2015 Account Debit
Prepare a December adjusted trial balance XYZ Company's December 31, 2015, trial balance is as follows:
XYZ Company | ||
Trial Balance | ||
December 31, 2015 | ||
Account | Debit | Credit |
Cash | $ 43,500 | |
Accounts Receivable | 53,500 | |
Allowance for Doubtful Accounts | 1,500 | |
Notes Receivable | 30,000 | |
Merchandise Inventory | 55,000 | |
Land | 20,000 | |
Building | 150,000 | |
Accumulated Depreciation, Building | $ 15,000 | |
Equipment | 50,000 | |
Accumulated Depreciation, Equipment | 21,000 | |
Goodwill | 26,000 | |
Accounts Payable | 25,000 | |
Long-Term Notes Payable | 75,000 | |
Common Stock, $10 par, 2,000 shares authorized and outstanding | 20,000 | |
Retained Earnings | 147,000 | |
Sales Revenue | 700,000 | |
Salaries Expense | 150,000 | |
Utilities Expense | 3,500 | |
Cost of Goods Sold | 350,000 | |
Administrative Expenses | 55,000 | |
Sales Expenses | 15,000 | _______ |
Totals | $1,003,000 | $1,003,000 |
XYZ is a small company and records adjusting entries and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.
Additional Information:
Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.
Building is depreciated at 3% per year. There is no salvage value.
Equipment is depreciated at 15% per year. There is no salvage value.
XYZ discovered, on December 30, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
Salaries for the last half of December, payable in January, amount to $5,500.
XYZ estimates that of the Accounts Receivable, 5% will not be collectable. Prepare a December adjusted trial balance
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