XYZ Company's December 31, 2015, trial balance is as follows: XYZ Company Trial Balance December 31, 2015
Question:
XYZ Company
Trial Balance
December 31, 2015
XYZ is a small company and records adjusting entries and closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.
Additional Information:
Notes Receivable is a 3-month, 6% note accepted on November 1, 2015.
Long-Term Notes Payable is a 5-year, 5% note that was signed on July 1, 2015. Interest is payable annually.
Building is depreciated at 3% per year. There is no salvage value.
Equipment is depreciated at 15% per year. There is no salvage value.
XYZ discovered, on December 30, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
Salaries for the last half of December, payable in January, amount to $5,500.
XYZ estimates that of the Accounts Receivable, 5% will not be collectable.
Required:
Prepare in journal form, any required correcting entries.
Prepare in journal form, all end-of-the-period adjusting entries.
Prepare a December adjusted trial balance.
Prepare a classified balance sheet for the year ended December 31, 2015.
Prepare in journal form, the closing entries for the year ended December 31, 2015.
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Advanced Accounting
ISBN: 978-0077862220
12th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik