Surian Motors Company prepared a trial balance on the following partially completed worksheet for the year ended
Question:
Additional information:
(a) The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value;
(b) Salaries accrued but not recorded total $500;
(c) On January 1, 2016, the company had paid 3 years€™ rent in advance at $100 per month;
(d) Bad debts are expected to be 1% of total sales;
(e) Interest of $400 has accrued on the note payable;
(f) The income tax rate is 40% on current income and will be paid in the first quarter of 2017.
Required:
1. Complete the worksheet.
2. Prepare financial statements for 2016.
3. Prepare closing entries in the general journal.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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