Splish Brothers Corporation's balance sheet at December 31,2024 , is presented below. During 2025 , the following transactions occurred. Splish Brothers uses a perpetual inventory system. 1. Splish Brothers paid $6,750 interest on the bonds on January 1,2025 . 2. Splish Brothers purchased $650,970 of inventory on account. 3. Splish Brothers sold for $1,296,000 cash inventory which cost $712,800. Splish Brothers also collected $77,760 sales taxes. 4. Splish Brothers paid $621,000 on accounts payable. 5. Splish Brothers paid $6,750 interest on the bonds on July 1, 2025 . 5. Splish Brothers paid $6,750 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($15,120) expired on July 31. 7. On August 1, Splish Brothers paid $26,520 for insurance coverage from August 1, 2025, through July 31,2026. 8. Splish Brothers paid $45,900 sales taxes to the state. 9. Paid other operating expenses, $245,700. 0. Redeemed the bonds on December 31,2025 , by paying $129,600 plus $6,750 interest. 1. Issued $243,000 of 8%,10-year bonds on December 31,2025 , at 103 . The bonds pay interest every June 30 and December 31. justment data: Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $8,200 salvage value. The income tax rate is 30\%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare an adjusted trial balance at December 31, 2025. (Do not list those accounts that have zero ending balance.) SPLISH BROTHERS CORPORATION Trial Balance Prepare an income statement for the year ending December 31, 2025. Prepare a retained earnings statement for the year ending December 31, 2025. Prepare a classified balance sheet as of December 31, 2025. (List current assets in order of liquidity.) Splish Brothers Corporation's balance sheet at December 31,2024 , is presented below. During 2025 , the following transactions occurred. Splish Brothers uses a perpetual inventory system. 1. Splish Brothers paid $6,750 interest on the bonds on January 1,2025 . 2. Splish Brothers purchased $650,970 of inventory on account. 3. Splish Brothers sold for $1,296,000 cash inventory which cost $712,800. Splish Brothers also collected $77,760 sales taxes. 4. Splish Brothers paid $621,000 on accounts payable. 5. Splish Brothers paid $6,750 interest on the bonds on July 1, 2025 . 5. Splish Brothers paid $6,750 interest on the bonds on July 1, 2025. 6. The prepaid insurance ($15,120) expired on July 31. 7. On August 1, Splish Brothers paid $26,520 for insurance coverage from August 1, 2025, through July 31,2026. 8. Splish Brothers paid $45,900 sales taxes to the state. 9. Paid other operating expenses, $245,700. 0. Redeemed the bonds on December 31,2025 , by paying $129,600 plus $6,750 interest. 1. Issued $243,000 of 8%,10-year bonds on December 31,2025 , at 103 . The bonds pay interest every June 30 and December 31. justment data: Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $8,200 salvage value. The income tax rate is 30\%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Prepare an adjusted trial balance at December 31, 2025. (Do not list those accounts that have zero ending balance.) SPLISH BROTHERS CORPORATION Trial Balance Prepare an income statement for the year ending December 31, 2025. Prepare a retained earnings statement for the year ending December 31, 2025. Prepare a classified balance sheet as of December 31, 2025. (List current assets in order of liquidity.)
