Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The trial balance for ABC Company is below Cash 71,000 Accounts Receivable 24,100 Allowance for Bad Debts 2,700 Inventory 49,300 Prepaid Insurance 6,000 Supplies 12,500

The trial balance for ABC Company is below Cash 71,000 Accounts Receivable 24,100 Allowance for Bad Debts 2,700 Inventory 49,300 Prepaid Insurance 6,000 Supplies 12,500 Office equipment 52,000 Accumulated Deprec 16,000 Accounts Payable 18,000 Unearned Revenue 3,000 Notes Payable 42,000 Capital Stock 4,500 Additional Paid in Capital 71,000 Retained Earnings 29,000 Dividends Paid 5,000 Sales 137,000 Cost of Goods Sold 63,000 Salaries 22,000 Rent Expense 9,000 Insurance Expense 4,500 Depreciation Expense 4,800 The trial balance above reflects all of the transactions for the year for ABC Company except for the following information that either happened or needed adjusting entries on the last day of the year (December 31). All of the amounts in the above trial balance have a normal balance. The prepaid insurance of $6,000 was purchased on December 1 and will last for 12 months. 200 Inventory items that each cost $15 were found to be completely obsolete (NRV is zero) and will need to be scrapped. The allowance for bad debts is determined to be 20% of the accounts receivable. 200 Inventory items that each cost $15 were found to be completely obsolete (NKV is zero) and will need to be scrapped. The allowance for bad debts is determined to be 20% of the accounts receivable. A piece of office equipment that originally cost $2,500 was sold for $300. This equipment had accumulated $2,400 of depreciation. An annual payment of $3,300 is due on the note payable on January 1 of the next year. No interest or payment has been recorded since the beginning of the current year. The interest rate on the loan is 4% per year. There were 10,000 shares issued and outstanding for the entire year. Using this information, please prepare an income statement, statement of stockholders' equity and balance sheet for the year. Using these statements answer the following questions: Question 41 (4 points) What was ending total stockholders equity? Question 42 (4 points) What is the gross profit for the year? Give answer without dollar sign, commas or decimals. Question 44 (4 points) What was ending total current assets for the year? Answer without dollar signs or commas. Question 45 (4 points) What was the ending total liabilities for the year

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

Step: 3

blur-text-image

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 Accounting A Decision Emphasis

Authors: Don T. DeCoster, Eldon L. Schafer, Mary T. Ziebell

4th Edition

0471637130, 978-0471637134

More Books

Students also viewed these Accounting questions

Question

2. How were various roles filled?

Answered: 1 week ago