Question 1650 pints Trial Balance as of December 31, 2016 20 74100 70 Acco NO 4 1200 3.000 Accounts Values Cash 7500 Accounts Receivable 12.500 Merchandise inventory Store Supplies Office Supplies Prepaid Insurance Expense Store que 3500 Accumulated Depreciation, Stone Iquipment Office Eqen Depreciation Office Equipment 1.050 Accounts Payable Salaries Payale Income Tax Payable Common Stock Retained rings 11. Sales Sales Returns and Allowances 3. Purchases Purchase Returns and Allowances Purchase Discount Translation in 3.500 Sales salaria Esperes 35 Rent Expense. Selling Space 11 Store Supplies Espere Depreciation Expone Store Office Salaries Expense Rent Express, Office Space Office Supplies Expense Insurance pone Depreciation One quem Income Tax Expense Additional Information Retained Eamings at the beginning of year, were $27.500 and dividends paid during the year Store supplies inventory at year end 5350 Office supplies into your end: 5160 4 Expired portion of prepaid race: $1550 Stone equipment was bought on January 2014. Estimated life was 10 years with me shape valse, Strigline depreciatic method is applied for more equipment on July 2014. Estimated life was years with hugeval of SSO. Selline depreciation method is applied for office equipment Accrued alares payable 5350 Accred office salaris 5250 i. Additional income tax expense: 5750 J. Ending merchandise levey 542,500 were 16.000 Required: 1. Using Cost of Goods Sold Model calculate COGS and journalize the eyes points) 2. Journalize the adjustment entries given in the additional information part of the poim). 3. Prepare Adjusted Trial Balance (10 points) 4. Prepare Income Statement (1 points) Prepare Changes in Equity Statement is points) 6. Prepare Balance Sheet (10 points) Question 3: (50 points) Trial Balance as of December 31, 2016 Value in s 7,500 12,500 30.000 1,500 450 2,000 35,500 7,100 7,000 1.950 1.600 Accounts Cash Accounts Receivable Merchandise Inventory Store Supplies Office Supplies Prepaid Insurance Expense Store Equipment Accumulated Depreciation, Store Equipment Office Equipment Accumulated Depreciation, Office Equipment Accounts Payable Salaries Payable Income Tax Payable Common Stock Retained Earnings Sales Sales Returns and Allowances Purchases Purchase Returns and Allowances Purchase Discounts Transportation - In Expenses Sales Salaries Expenses Rent Expense. Selling Space Store Supplies Expense Depreciation Expense, Store Equipment Office Salaries Expense Rent Expense, Office Space Office Supplies Expense Insurance Expense Depreciation Expense, Office Equipment Income Tax Expense 42,000 11,500 360,000 3,600 250,000 1,200 3,000 3.500 25,500 13,500 -0- 28,500 1,800 -0- -0- 5,500 Additional Information: a. Retained Earnings at the beginning of year, were $27,500 and dividends paid during the year were $16,000 b. Store supplies inventory at year end: $350 c. Office supplies inventory at year end: $160 d. Expired portion of prepaid insurance: $1,550 e Store equipment was bought on January 2014. Estimated life was 10 years with no salvage value. Straight line depreciation method is applied for store equipment f. Office equipment was bought on July 2014. Estimated life was 5 years with a salvage value of $500. Straight line depreciation method is applied for office equipment g Accrued salaries payable: $350 h. Accrued office salaries payable: S250 i. Additional income tax expense: $750 j. Ending merchandise inventory: $42,500 Required: 1. Using Cost of Goods Sold Model, calculate COGS and journalize the necessary entries (6 points). 2- Journalize the adjustment entries given in the additional information part of the question (9 points). 3- Prepare Adjusted Trial Balance (10 points). 4- Prepare Income Statement (10 points). 5. Prepare Changes in Equity Statement (5 points). 6- Prepare Balance Sheet (10 points)
