Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following additional information is available at June 3 0 , 2 0 2 2 : ( i ) Store Supplies on hand at June

The following additional information is available at June 30,2022:
(i) Store Supplies on hand at June 30,2022 amounted to $355,000.
(ii) Insurance of $211,500 was paid on April 1,2022, for 9-months to December 2022
(iii) Rent was prepaid on March 1,2022, for 7-months to September 2022.
(iv) The furniture and fixtures have an estimated useful life of 10 years and is being
depreciated on the straight-line method down to a residual value of $10,000.
(v) The motor truck was acquired on December 1,2021, and is being depreciated
over 5 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 $188,000 at June 30,2022.
(vii) Accrued interest expense as of June 30,2022, $105,000.
(viii) On June 30,2022, $185,000 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 $140,000.
(x) After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,380,500 worth of inventory on hand at June 30,2022
Other data:
(xi) The business is expected to make principal payments totalling $600,000 towards the
loan during the fiscal year to June 30,2023
PLease prepare the following:
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

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_2

Step: 3

blur-text-image_3

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

Management And Cost Accounting Students Manual

Authors: Colin Drury

6th Edition

184480030X, 978-1844800308

More Books

Students also viewed these Accounting questions

Question

What is conservative approach ?

Answered: 1 week ago

Question

What are the basic financial decisions ?

Answered: 1 week ago

Question

What is meant by 'Wealth Maximization ' ?

Answered: 1 week ago