The following accounts appear in the ledger of Celso and Company as of June 30, the end
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Cash ............... $ 15,349
Accounts Receivable .......... 13,810
Merchandise Inventory ......... 50,280
Store Supplies ........... 1,935
Prepaid Insurance ........... 1,385
Store Equipment $ 18,640 Accumulated Depreciation, Store Equipment 6,882 Accounts Payable 10,065 B. E. Celso, Capital 96,524 B. E. Celso, Drawing 30,000 Sales 208,030 Sales Returns and Allowances 1,740 Purchases 133,050 Purchases Returns and Allowances 4,295 Purchases Discounts 3,853 Freight In 8,350 Wages Expense 35,400 Advertising Expense 7,710 Rent Expense 12,000
The data needed for the adjustments on June 30 are as follows:
a– b. Merchandise inventory, June 30, $ 54,600.
c. Insurance expired for the year, $ 475.
d. Depreciation for the year, $ 4,380.
e. Accrued wages on June 30, $ 1,492.
f. Supplies on hand at the end of the year, $ 100.
Required
1. Prepare a work sheet for the fiscal year ended June 30.
2. Prepare an income statement.
3. Prepare a statement of owner’s equity. No additional investments were made during the year.
4. Prepare a balance sheet.
5. Journalize the adjusting entries.
6. Journalize the closing entries.
7. Journalize the reversing entry.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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