Question
The contained the following accounts at December 31st, the end of the companys fiscal year. Cash $26,700 Accounts receivable 33,700 Merchandise inventory 45,000 Store supplies
The contained the following accounts at December 31st, the end of the companys fiscal year.
Cash $26,700
Accounts receivable 33,700
Merchandise inventory 45,000
Store supplies 5,500
Store equipment 85,000
Accumulated depreciation store equipment 18,000
Delivery equipment 48,000
Accumulated depreciation delivery equipment 6,000
Notes payable 51,000
Accounts payable 48,500
Common stock 90,000
Retained earnings 8,000
Sales revenue 757,200
Cost of goods sold 501,600
Salaries expense 140,000
Advertising expense 26,400
Utilities expense 14,000
Repair expense 12,100
Delivery expense 16,700
Rent expense 24,000
Totals $978,700 $978,700
Adjustment data:
Store supplies on hand total $3,500
Depreciation is $9,000 on the store equipment
Depreciation is $7,000 on the delivery equipment
Interest of $11,000 is accrued on notes payable at December 31st.
$30,000 of the notes payable is due for payment next year.
Required:
1. Prepare the journal entries for the necessary adjusting entries.
2. Prepare the Adjusted Trial Balance.
3. Prepare an income statement for the year ending December 31, 20XX. The format of the income
statement is at your discretion. What format did you use for the income statement?
4. Prepare a classified balance sheet as of December 31, 20XX.
5. Prepare the closing entries.
6. Prepare the post-closing trial balance.
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