Question
The Boston Trading Company, whose accounting year ends on December 31, had the following normal balances in its general ledger at December 31. Cash $19,500
Cash | $19,500 |
Accounts Receivable | 84,900 |
Inventory | 109,500 |
Prepaid Insurance | 9,000 |
Office Supplies | 6,300 |
Furniture & Fixtures | 31,500 |
Accumulated Depreciation - Furn. & Fixtures | 7,500 |
Delivery Equipment | 126,000 |
Accumulated Depreciation - Delivery Equipment | 18,000 |
Accounts Payable | 61,500 |
Long-term Notes Payable | 45,000 |
Common Stock | 112,500 |
Retained Earnings | 77,100 |
Sales Revenue | 945,000 |
Cost of Goods Sold | 606,000 |
Utilities Expense | 7,200 |
Sales Salaries Expense | 120,000 |
Delivery Expense | 16,200 |
Advertising Expense | 8,400 |
Rent Expense | 21,600 |
Office Salaries Expense | 87,000 |
Income Tax Expense | 13,500 |
During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows:
Prepaid insurance, December 31 | $1,200 |
Depreciation Expense on furniture and fixures for year | 1,800 |
Depreciation Expense on delivery equip. for the year | 14,000 |
Salaries Payable, December 31 ($1,800 Sales and $1,200 Office) | 3,000 |
Unused office supplies on December 31 | 1,000 |
a.
General Journal | |||||
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Date | |||||
Answer | Answer | ||||
To record accrued salaries at December 31. ~Salaries Expense~Salaries Payable~Sales Revenue~Selling, General and Administrative Expenses} To record depreciation expense for furniture for the year. To record depreciation expense for delivery equipment for the year. Sales Salaries Expense To record accrued salaries at December 31. | |||||
31 | 5 | {:NM:=5300 | Answer | ||
Answer | Answer | ||||
To record office supplies used. |
b. Do not use negative signs with your answers.
BOSTON TRADING COMPANY Income Statement For the Year Ended December 31 | |
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This question has two parts
A. General Journal
B. Income statement
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