this was the information we had to go off of
to beable to make adjustments but how do i put them into an income statement and balance sheet!
and someone could explain to me how they got that answer cause thats what immhaving a hardtime getting is why i get the answer im getting
Home Insert X Cut Arial - 10-AA [BCopy BIU a-A- EEEEE Format Painter Clipboard Font Alignm fit Rocky Ram, Inc. B A ocky Ram, Inc. orksheet 2/31/2020 Acc. # Account Titles 3800 Retained Earnings 3900 Dividends 4010 Sales Revenue 4100 Sales Returns and Allowances 4150 Sales Discounts 5010 Cost of Goods Sold 6000 Wage & Salary Expense 6010 Insurance Expense 6020 Utilities Expense 6030 Supplies Expense 6040 Depreciation Expense - Bldg. 6050 Depreciation Expense - Equip. 6060 Bad Debt Expense 7000 Interest Expense 7100 Interest Revenue 7150 Rent Revenue 9000 Income Tax Expense Totals Net Income Totals Unadjusted Trial Balance Dr. Cr. RE 471,800 6,000 2,319,758 21,200 17,273 1.240.267 716.000 3.200 76,220 26.000 5,500 11.000 5,958 830 0 0 3,322.588 3.322.588 Ref." Explanations: Rocky Ram, Inc. Information for Year End Adjusting Journal Entries December 31, 2020 1 The building (cost of $180,000) was purchased on January 1, 2019 and it is expected to have a useful life of 30 years with no salvage value. Depreciation expense has been recorded through November 30, 2020. 2 Office equipment (cost of $130,000) as of November 30, 2020 was purchased on January 1, 2015. The office equipment is expected to have a useful life of 10 years with $10,000 salvage value. Depreciation expense has been recorded through November 30, 2020. 3 Insurance in the amount of $4,800 was paid on April 1, 2020 covering the period of April 1, 2020 through March 31, 2021. The insurance expense and prepaid insurance accounts have been properly adjusted through November 30, 2020. 4 A December 31, 2020 count of supplies showed $3,300 of supplies remaining on hand. 5 Salaries earned but unpaid as of December 31, 2020 amount to $31,500. 6 The company has earned one of the three months rent previously received on December 1 from Bullwinkle Inc. 7 Interest at an annual rate of 3% is owed for the month of December 2020 on the Mortgage Note Payable due in 5 years (round interest to nearest whole dollar). 8 The savings account was opened on December 31, 2019. It earns interest at an annual rate of 1.5%, compounded monthly. Interest has been received and recorded through November 30, 2019. The bank notified the company that interest for the month of December was deposited in the savings account on December 31, 2020 (round interest to the nearest dollar). 9 Uncollectible accounts are expected to be $11,500 based on net sales. 10 Income taxes owed for the year amounted to $15,000. Rocky Ram, Inc. December 2020 Transactions 1 On December 1, Rocky Ram, Inc. received $17,000 from Kanga Roo Inc. for partial payment of account. (First entry journalized and posted for you.) 2 On December 1, Rocky Ram, Inc. received $6,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2020 through February 28, 2021. 4 3 On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $12,000, Bow & Arrow, Inc. for $8,000, and Boa Construction Inc. for $15,000 in payment on accounts. On December 10, the company purchased supplies in the amount of $4,000 on account from Boa Construction Inc. (FOB Shipping Point, terms n/10, 1/30), order shipped in December On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account. 5 6 On December 13, Rocky Ram, Inc. made a sale in the amount of $77,000 to Poodle & Co (terms 2/10, 1/30). The cost of the inventory sold was $36,000. 8 7 On December 17, Board of Directors declared $8,200 in dividends to be paid in January On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2020 9 On December 23, received full payment from Poodle & Co. for sale made December 13 (16), within the discount period. 10 On December 23, Rocky Ram, Inc. made a sale in the amount of $90,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $28,000. 11 On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $14,000. The cost of inventory was $9,000. 12 On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $50,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January 13 On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2021. 14 On December 31, Rocky Ram, Inc. paid utility bills totaling $2,020 for utilities used during the month of December 50 Rocky Ram, Inc. Worksheet 12/31/2020 Cr. Unadjusted Trial Balance Dr. RO 91,540 60,830 104,000 1,500 165,000 1,600 21,000 190.000 47,000 380,000 180,000 11,500 21,000 Acc. # Account Titles 1010 Cash 1020 Cash in Savings Account 1030 Accounts Receivable 1035 Allowance for Doubtful Accounts 1040 Merchandise Inventory 1050 Prepaid Insurance 1060 Supplies 1510 Office Equipment 1515 Accum. Depr. - Office Equip. 1520 Land 1530 Building 1535 Accum. Depr. - Bldg. 2010 Accounts Payable 2020 Wages & Salaries Payable 2030 Unearned Rent Revenue 2040 Interest Payable 2050 Income Taxes Payable 2500 Dividends Payable 2700 Notes Payable 2800 Mortgage Notes Payable 3000 Common Stock 3800 Retained Earnings 3900 Dividends 4010 Sales Revenue 4100 Sales Returns and Allowances 4150 Sales Discounts 5010 Cost of Goods Sold 6000 Wage & Salary Expense Nov.TB GJ1 GJ2 GL 6,000 0 O O 8,200 45,000 200.000 190,000 471,800 6.000 2,319,758 21,200 17 273 1.240.267 716.000 worksheet AJE Financials
