Question
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.
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