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The adjusted trial balance of McCoy Company included the following selected accounts: DR CR 47,000 Accounts Payable Accounts Receivables Accumulated Depreciation Advertising Expense Allowance for
The adjusted trial balance of McCoy Company included the following selected accounts: DR CR 47,000 Accounts Payable Accounts Receivables Accumulated Depreciation Advertising Expense Allowance for Doubtful Acct Cash Common Stock Cost of Goods Sold Depreciation Expense Freight-Out Interest Expense Interest Revenue Inventory Property Plant and Equipment Retained Earnings Salaries and Wages Expense Sales Discounts Sales Returns and Allowances Sales Revenue Unearned Revenue Utilities Expense 14,000 10,000 10,000 7,000 90,000 395,500 3,500 2,000 19,000 25,000 75,000 130,000 4,000 84,000 9,500 45,000 635,000 12,000 23,000 820,500 820,500 Instructions 1. The accountant forgot to record the adjusting entry for bad debts for the year. The company estimates that 8% of the accounts receivable will be uncollectible. 2. Use the above information to prepare a multi-step income statement, a statement of retained earnings and a balance sheet for the year ended December 31, 2018. Make sure that each financial statement has the proper heading. Show the following items: net sales, gross profit, operating expenses, ending retained earnings, total assets, total liabilities, total owners' equity and total 3. Calculate the gross profit rate and the profit margin
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