Question
The year end for Acme Plastics Ltd. was just completed. Prior to sending the information to the external accountant Need Money, LLP. Rondo the owner
The year end for Acme Plastics Ltd. was just completed. Prior to sending the information to the external accountant Need Money, LLP. Rondo the owner wants the internal accounting team led by Laura to complete the financial statements starting with the unadjusted trial balance as of March 31, 2023. The following is the unadjusted trial balance as of March 31, 2023: Acme Plastics Ltd. Unadjusted Trial Balance March 31, 2023
date | account | D | C |
cash | $ 51,000 | ||
accounts Receivable | $259,000 | ||
inventory | $172,000 | ||
Prepaids | $19,500 | ||
equipment | $1,250,000 | ||
Accumulated Depreciation - Equipment | $304,000 | ||
other assest | $91,000 | ||
accounts payable | $145,000 | ||
unearned revenue | $75,000 | ||
notes payable (due 2026) | $200,000 | ||
common shares | $415,000 | ||
revenue | $1,594,900 | ||
salaries expense | $337,000 | ||
rent expense | $429,000 | ||
interest expense | $125,400 |
The following was reviewed with Rondo and Laura and agree to the following adjustments for the year ended March 31: a) Physical Inventory counts shows $155,000 of supplies on hand. b) Prepaid rent at March 31 should be $13,000. c) Depreciation for 2023 is $75,000. d) Unearned Revenue should be $41,000. e) Wages in the amount of $40,000 are owed but unpaid and not recorded at year- end. f) 3 months interest at 8% on the note was paid on May 31. Interest for the period from January 1 to March 31is not paid and not recorded. g) Income tax of $125,000 is owed but not recorded and unpaid please provide journal entry, statement of earnings, statement of retained earnings and the statement of financial position from the information given above.
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