Question
The trial balance of Goldsmith Company shown below pertains to December 31, 20x6, which is the end of its year-long accounting period. Data needed for
The trial balance of Goldsmith Company shown below pertains to December 31, 20x6, which is the end of its year-long accounting period. Data needed for the adjusting entries include the following: a. Supplies on hand at year-end, $2,000. b. Depreciation on furniture and fixtures, $20,000. c. Depreciation on building, $10,000. d. Salaries owed but not yet paid, $5,000. e. Accrued service revenue, $12,000. f. Of the $45,000 balance of unearned service revenue, $32,000 was earned during the year. g. Accrued income tax expense, $35,000.
Requirements
a. Open the ledger accounts with their unadjusted balances. Show dollar amounts in thousands, as shown for Accounts Receivable:
b. Journalize the Goldsmith Company adjusting entries at December 31, 20X6. Key entries by letter.
c. Post the adjusting entries.
d. Prepare an adjusted trial balance. (Refer to Slide 69 for the format)
e. Prepare the income statement, the statement of changes in equity, and the statement of financial position.
Accounts Receivable $000 370 Goldsmith Company Trial Balance as at December 31, 20X6 Debit Credit $ 198,000 370,000 6,000 100,000 40,000 250,000 130,000 380,000 45,000 Cash Accounts receivable Supplies Furniture and fixtures Accumulated deprecation - furniture and fixtures Building .......... Accumulated depreciation - building Accounts payable Salary payable Unearned service revenue Income tax payable Share capital... Retained earnings Dividends..... Service revenue Salary expense Depreciation expense - furniture and fixtures Depreciation expense - building Income tax expenses Miscellaneous expense Total ..... 100,000 193,000 65,000 286,000 172,000 13,000 1,174,000 1,174,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started