The following additional information is available at June 30, 2022: (iv) 3 88 (A) Store Supplies on hand at June 30, 2022 amounted to $95,400. Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries carned by employees not yet paid amounted to $195,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $50,550. (ix) (viii) On June 30, 2022, $66,000 of the previously unearned sales revenue had been camed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,115,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023 ACCT1002-Introduction to Financial Accounting Assignment #2 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022 [Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022 c) Prepare the company's multiple-step income statement for the period ending June 30, 2022 d) Prepare the company's statement of owner's equity at June 30, 2022 e) Prepare the company's classified balance sheet at June 30, 2022
The following additional information is available at June 30, 2022: (iv) 3 88 (A) Store Supplies on hand at June 30, 2022 amounted to $95,400. Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries carned by employees not yet paid amounted to $195,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $50,550. (ix) (viii) On June 30, 2022, $66,000 of the previously unearned sales revenue had been camed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,115,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023 ACCT1002-Introduction to Financial Accounting Assignment #2 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022 [Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022 c) Prepare the company's multiple-step income statement for the period ending June 30, 2022 d) Prepare the company's statement of owner's equity at June 30, 2022 e) Prepare the company's classified balance sheet at June 30, 2022
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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Question
![The following additional information is available at June 30, 2022:
(i)
Store Supplies on hand at June 30, 2022 amounted to $95,400.
(ii)
(iii)
(iv)
Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022
Rent was prepaid on March 1, 2022, for 7-months to September 2022.
The furniture and fixtures have an estimated useful life of 10 years and is being
depreciated on the straight-line method down to a residual value of $10,000.
(v)
The motor truck was acquired on February 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $15,000
(vi)
(vii)
(viii)
(ix)
(x)
Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $50,550.
On June 30, 2022, $66,000 of the previously unearned sales revenue had been cared.
The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for Bad Debts should be $100,000.
After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,115,500 worth of inventory on hand at June 30,2022
Other data:
(xi)
The business is expected to make principal payments totalling $345,000 towards the
loan during the fiscal year to June 30,2023
ACCT1002-Introduction to Financial Accounting Assignment #2
Page 13
Required:
a) Prepare the necessary adjusting journal entries on June 30, 2022
[Narrations are not required]
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company's multiple-step income statement for the period ending
June 30, 2022
d) Prepare the company's statement of owner's equity at June 30, 2022
e)
Prepare the company's classified balance sheet at June 30, 2022](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F46744b00-8e22-42b0-b983-1cb6ce336f27%2F381f3d27-a229-49cb-843b-cd2495a86ba5%2Fgkqt838_processed.png&w=3840&q=75)
Transcribed Image Text:The following additional information is available at June 30, 2022:
(i)
Store Supplies on hand at June 30, 2022 amounted to $95,400.
(ii)
(iii)
(iv)
Insurance of $184,950 was paid on April 1, 2022, for 9-months to December 2022
Rent was prepaid on March 1, 2022, for 7-months to September 2022.
The furniture and fixtures have an estimated useful life of 10 years and is being
depreciated on the straight-line method down to a residual value of $10,000.
(v)
The motor truck was acquired on February 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $15,000
(vi)
(vii)
(viii)
(ix)
(x)
Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $50,550.
On June 30, 2022, $66,000 of the previously unearned sales revenue had been cared.
The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for Bad Debts should be $100,000.
After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,115,500 worth of inventory on hand at June 30,2022
Other data:
(xi)
The business is expected to make principal payments totalling $345,000 towards the
loan during the fiscal year to June 30,2023
ACCT1002-Introduction to Financial Accounting Assignment #2
Page 13
Required:
a) Prepare the necessary adjusting journal entries on June 30, 2022
[Narrations are not required]
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company's multiple-step income statement for the period ending
June 30, 2022
d) Prepare the company's statement of owner's equity at June 30, 2022
e)
Prepare the company's classified balance sheet at June 30, 2022
Transcribed Image Text:A/C Name
Plant Universe Ltd- Acacia Branch
Trial Balance as at June 30, 2022
Trial Balance
DR
CR
Cash
Accounts receivable
1,855,000
1,000,000
Allowance for bad debt
80,000
Merchandise Inventory
1,200,000
Store Supplies
205,000
Prepaid Insurance
184,950
Prepaid rent
287,035
Furniture and fixtures
600,000
Accumulated depreciation-Furniture and Fixtures
59,000
Motor Truck
1,200,000
Accumulated depreciation - Motor Truck
Accounts payable
50,000
Salary payable
Interest payable
28,000
Unearned Sales revenue
198,500
Long-term loan
2,185,375
Capital
Withdrawals
Sales revenue
2,900,000
125,000
4,105,000
Sales discount
160,500
Sales returns and allowances
145,400
Cost of goods sold
1,055,000
Salaries expense
808,000
Insurance Expense
Utilities Expense
184,950
325,000
328,040
Rent Expense
Depreciation Expense - Furniture & Fixtures
Depreciation Expense - Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck
Bad-Debt Expense
Interest Expense
58,000
9,663,875 9,663,875
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