Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Talbot Riding Stables provides stables, care for animals, and grounds for riding and she wing horses. The account balances at the beginning of 2022 were:

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Talbot Riding Stables provides stables, care for animals, and grounds for riding and she wing horses. The account balances at the beginning of 2022 were: 23.700 Cash Accounts Receivable Supplies (Feed and Straw) Land Building Accumulated Depreciation (Buildings) Equipment Accumulated Depreciation (Equipment) $ 2.200 Accounts Payable 4,400 Income Tax Payable 27.800 Interest Payable 167.000 Wages Puyable 115,000 Notes Puyable (due in 2026) 36,000 Common Shares 57.000 Retained Earnings 12/31/2021 16.500 15.100 2.700 14,200 60,000 150,000 55,200 During 2022, the following transactions occurred: a. Talbot provided animal care services, all on credit, for $210,300. Talbot rented stables to customers for $20,500 cash. Talbot rented its grounds to individual riders, groups, and show organizations for $41,800 cash b. There remains $15,600 of accounts receivable to be collected at December 31, 2022. c. Feed in the amount of $62,900 was purchased on credit and debited to the supplies account d. Straw was purchased for $7,400 cash and debited to the supplies account e. Wages payable at the beginning of 2022 were paid early in 2022. Wages were earned and paid during 2022 in the amount of $112,000. f. The income tax payable at the beginning of 2022 was paid early in 2022 g. Payments of $73,000 were made to creditors for supplies previously purchased on credit. h. One year's interest at 9% was paid on the notes payable on July 1, 2022. i. During 2022. Jon Talbot, a principal shareholder, purchased a horse for his wife, Jennifer, to ride. The horse cost $7,000, and Talbot used his personal credit to purchase it. 1. Property taxes were paid on the land and buildings in the amount of $17,000. k. Dividends were declared and paid in the amount of $7,200. The following data are available for adjusting entries: Supplies (feed and straw) in the amount of $30,400 remained unused at year-end. Annual depreciation on the buildings is $6,000. Annual depreciation on the equipment is $5,500. Wages of $4,000 were unrecorded and unpaid at year-end. Interest for six months at 9% per year on the note is unpaid and unrecorded at year-end. Income taxes of $16,500 were unpaid and unrecorded at year-end, Post the 2022 beginning balances to T-accounts. Prepare journal entries for transactions a through kand post the journal entries to T-accounts, adding any new T-accounts you need. Prepare the adjustments and post the adjustments to the T-accounts, adding any new T-accounts you need Prepare a statement of earnings, Prepare a statement of retained earnings. Prepare a classified statement of financial position. Prepare 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

Understand Accounting

Authors: Claude Hitching, Derek Stone

1st Edition

0273018833, 978-0273018834

More Books

Students also viewed these Accounting questions

Question

=+c) Compute the RRRs. Which action is preferred based on the RRRs?

Answered: 1 week ago

Question

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago