Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6-5 Prepare work sheet, classified income statement, statement of retained earnings, classified balance sheet, and closing entries (based on Appendix) (L.O. 5-8) The following

Problem 6-5

Prepare work sheet, classified income statement, statement of retained earnings, classified balance sheet, and closing entries (based on Appendix) (L.O. 5-8)

The following data are for Leone Lumber Company:

LEONE LUMBER COMPANY

TRIAL BALANCE

DECEMBER 31, 2012

ACCT. ACCT TITLE DEBITS CREDITS

100 CASH 70,640

103 ACCTS RECIEVABLE 159,520

105 MERCHANDISE INVENTORY 285,200

107 SUPPLIES ON HAND 5,360

108 PREPAID INSURANCE 4,800

112 PREPAID RENT 57,600

170 EQUIPMENT 88,000

171ACCUMLATED DEPRECIATON-EQUIPMENT 17,600

200 ACCOUNTS PAYABLE 102,800

300 CAPITAL STOCK 200,000

310 RETAINED EARNINGS 1/1/12 219,640

410 SALES 1,122,360

412 SALES RETURN AND ALLOWANCES 5,160

418 INTREST REVENUE 1000

500 PURCHASES 500,840

502 PURCHASES RETURNS & ALLOWANCES 4,040

503 TRANSPORTATION IN 7,840

505 ADVERTISING EXPENSE 78,000

508 SALES SALARIES EXPENSE 138,400

509 OFFICE SALARIES EXPENSE 80,800

510 OFFICERS SALARY EXPENSE 160,000

511 UTILITIES EXPENSE 4,800

536 LEGAL & ACCOUNTING EXPENSE 10,000

540 INTREST EXPENSE 600

567 MISCELLANEOUS ADMINSTRATIVE EXPENSE 9,880

1,667,440 1,667,440

1. A total of $3,400 of the prepaid insurance has expired.

2. An inventory of supplies showed that $1,700 are still on hand.

3. Prepaid rent expired during the year is $50,600.

4. Depreciation expense on store equipment is $8,800.

5. Accrued sales salaries are $4,000.

6. Accrued office salaries are $3,000.

7. Merchandise inventory on hand is $350,000.

Prepare the following:

a. A work sheet for the year ended December 31, 2012. Refer to the chart of accounts shown in a separate file at the end of the text for any other account numbers you need.

b. A classified income statement. The only selling expenses are sales salaries, advertising, supplies, and depreciation expenseequipment.

c. A statement of retained earnings.

d. A classified balance sheet.

e. Required 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

More Books

Students also viewed these Accounting questions

Question

=+(3.14) Q((HOA) U (HenB)) = P(HOA) +P (H'nB) for A, B E 70.

Answered: 1 week ago