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This is the fact pattern for the statements I have attempted to prepare but it isn't balancing.. Trial Balances Unadjusted Adjusted Accounts Payable $ 89,300

This is the fact pattern for the statements I have attempted to prepare but it isn't balancing.. Trial Balances Unadjusted Adjusted Accounts Payable $ 89,300 $ 89,300 Accounts Receivable 50,300 50,300 Accumulated Depreciation-Building 42,100 52,500 Accumulated Depreciation-Equipment 29,600 42,900 Building 190,000 190,000 Cash 23,000 23,000 Depreciation Expense-Building 10,400 Depreciation Expense-Equipment 13,300 Equipment 110,000 110,000 Freight-in 3,600 3,600 Insurance Expense 7,200 Interest Expense 3,000 11,000 Interest Payable 8,000 Interest Revenue 4,000 4,000 Beginning Inventory 40,500 40,500 Mortgage Payable 80,000 80,000 Office Salaries Expense 32,000 32,000 Prepaid Insurance - 9,600 2,400 Property Taxes Payable 4,800 Purchases 462,000 462,000 Purchase Discounts 12,000 12,000 Purchase Returns and Allowances 6,400 6,400 Sales Salaries Expense 76,000 76,000 Sales 618,000 618,000 Sales Commissions Expense 11,000 14,500 Sales Commissions Payable 3,500 Sales Returns and Allowances 8,000 8,000 Common Stock 150,000 150,000 Retained Earnings 26,600 26,600 Dividends 28,000 28,000 Property Taxes Expense 4,800 Utilities Expense 11,000 11,000 Analysis reveals the following additional data: 1. A physical inventory was conducted for year ended December 31, 2007 and the inventory was valued at $70,000. 2. Insurance expense and utilities expense are, 60% selling and 40% administrative. 3. $20,000 of the mortgage payable is due for payment next year. 4. Depreciation on the building and property tax expense are administrative expenses; depreciation on the equipment is a selling expense. 5. The beginning balance of accounts receivable is $64,750. 6. The amount of total assets at the beginning of the year is $321,725. Instructions 1) Journalize the adjusting entries. 2) Prepare a multiple-step income statement and a retained earnings statement for the year and a classified balance sheet as of December 31, 2007. THIS IS WHAT I DID: ADJUSTING ENTRIES Depreciation-Building: Depreciation expense-building 10,400 Accumulated depreciation-building 10,400 (To record annual depreciation of building) Depreciation-Equipment: Depreciation expense-building 13,300 Accumulated depreciation-equip 13,300 (To record annual depreciation of equipment) Prepaid Insurance: Insurance expense 7,200 Prepaid expense 7,200 (To record insurance expired) Interest Expense: Interest expense 8,000 Interest payable 8,000 (To record interest) Property Tax Expense: Property tax expense 4,800 Property tax payable 4,800 (To record property tax expense) Sales Commissions Expense: Sales commissions expense 3,500 Sales commissions payable 3,500 (To record sales commissions expense) INCOME STATEMENT Sales $618,000 Sales Returns and Allowances $8,000 NET SALES $610,000 COGS Beginning Inventory $40,500 Purchases $462,000 Purchases Returns and Allowances $6,400 Purchase Discounts $12,000 $(18,400) NET PURCHASES $443,600 Freight-In $3,600 DELIVERED COST OF PURCHASES $447,200 COGAS $487,700 Ending Inventory $70,000 COGS $417,700 Gross Profit $192,300 Operating Expenses SELLING: Sales Salaries Expense $76,000 Depreciation Expense-Equipment $13,300 Sales Commissions Expense $14,500 Utility Expense $6,600 Insurance Expense $4,320 Total Selling $114,720 GENERAL & ADMINISTRATIVE Office Salaries Expense $32,000 Depreciation Expense-Building $10,400 Property Tax Expense $4,800 Utilities Expense $4,400 Insurance Expense $2,880 Total G&A $54,480 Total Operations Expenses $169,200 Income from Operating Expenses $23,100 Other Revenues/Gains Interest Revenue $4,000 Other Expenses/Losses Interest Expense $11,000 $7,000 NET INCOME $16,100 RETAINED EARNINGS Retained Earnings 1/1 $26,600.00 Net Income $16,100.00 SUBTOTAL $42,700.00 Dividends $(28,000.00) Retained Earnings 12/31 $14,700.00 BALANCE SHEET Assets Current Assets Cash $23,000 Accounts Receivable $50,300 Prepaid Insurance $2,400 $75,700 Long term Assets Building $190,000 Equipment $110,000 $300,000 $375,700 Accumulated Depreciation-building $(52,500) Accumulated Depreciation-equip $(42,900) Total Assets $280,300 Liabilities Current Liabilities Accounts Payable $89,300 Mortgage Payable $20,000 Interest Payable $8,000 Property Tax Payable $4,800 Sales Commissions Payable $3,500 Long-Term Liabilities Mortgage Payable $60,000 Total Liabilities $185,600 Stockholder's Equity Common Stock $150,000 Retained Earnings $14,700 Total Stockholder's Equity $164,700 Total Liabilities and SE $353,000 i cant get it to balance, if anyone could point out my error i'd appreciate it

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