The normal account balances appearing in the ledger of Engle Company as of December 31, 2019, before
Question:
The normal account balances appearing in the ledger of Engle
Company as of December 31, 2019, before adjustments, are listed below:
Cash $30,000 Accounts Payable 18,000
Freight Out 14,300 Office Supplies 11,500
Sales 80,000 Withdrawals 16,000
Purchases 45,000 Accumulated Depreciation 20,000
Advertising Expense 13,000 Office Building
Purchase Discounts 12,000 Sales Discounts 4,000
Merchandise Inventory 32,000 Office Building 40,000
Freight In 1,700 Capital - Bowman 77,500
OTHER INFORMATION (ADJUSTMENT DATA)
A physical inventory of the merchandise was taken on December 31, 2019 and it
was valued at $30,000. The Periodic Inventory Method is used.
The office supplies inventory at December 31, 2019 was $ 6,500.
The estimated life of the office building is 20 years and is depreciated
using the straight line method of depreciation.
PREPARE
A) A Worksheet (30 Points)
B) A Classified Income Statement. (20 Points)
Expert Answer:
