Question
Store Supplies on hand at June 30, 2022 amounted to $98,400. (ii) Insurance of $115,500 was paid on May 1, 2022, for 7-months to November
Store Supplies on hand at June 30, 2022 amounted to $98,400. (ii) Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 (iii) Rent was prepaid on April 1, 2022, for 5-months to August 2022. (iv) The furniture and fixtures have an estimated useful life of 5 years and is beingdepreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on March 31, 2022, and is being depreciated over 10 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries earned by employees not yet paid amounted to $48,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $45,000. (viii) On June 30, 2022, $99,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $70,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi)The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022. [Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the companys multiple-step income statement for the period ending June 30, 2022 d) Prepare the companys statement of owners equity at June 30, 2022 e) Prepare the companys classified balance sheet at June 30, 2022
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