2. (Prepare Financial Statements) The adjusted trial balance of Decimal Co. as of December 31, 2017, contains the following. Instructions Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends DECIMAL CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable (a) Prepare an income statement. (b) Prepare a statement of retained earnings. (c) Prepare a classified balance sheet. Dr. $6,590 15,618 1,200 31,800 6,000 15,600 7,800 392 211 Cr. $9,680 12,500 11,601 20,000 3,619 27,600 211 $85,211 $85,211

2. (Prepare Financial Statements) The adjusted trial balance of Decimal Co. as of December 31, 2017, contains the following. Instructions Account Titles Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends DECIMAL CO. ADJUSTED TRIAL BALANCE DECEMBER 31, 2017 Service Revenue Salaries and Wages Expense Rent Expense Depreciation Expense Interest Expense Interest Payable (a) Prepare an income statement. (b) Prepare a statement of retained earnings. (c) Prepare a classified balance sheet. Dr. $6,590 15,618 1,200 31,800 6,000 15,600 7,800 392 211 Cr. $9,680 12,500 11,601 20,000 3,619 27,600 211 $85,211 $85,211

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the trial balance, adjustments and additional information to prepare the Statement ofComprehensive Income for the year ended 28 February 2022.Liat TradersPRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022Balance sheet accounts section Debit CreditR RCapital 550 854Drawings 75 150Land and buildings 477 164Vehicles at cost 91 000Equipment at cost 67 000Accumulated depreciation on vehicles 31000Accumulated depreciation onequipment 23800Trading inventory 68 800Debtors control 45 850Provision for bad debts 1900Bank 15 560Cash float 1 250Petty cash 250Creditors control 38 860Loan: MUFG Bank (15%) 21600Nominal accounts sectionSales 498 000Cost of sales 244 000Sales returns 8 000Wages 42 500Bank charges 2 300Rent income 26000Packing materials 12 000Advertising 8 500Rates 3 000Bad debts 900Discount allowed 750Discount received 980Stationery 8 500Interest on loan 2 970Water and electricity 5 550Insurance 5 000Telephone 7 0001 192 994 1 192 994Adjustments and additional information1. A…
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the followingaccount balances:Account Title Debits CreditsCash 30,000Accounts receivable 15,000Equipment 20,000Accumulated depreciation 6,000Salaries payable 9,000Common stock 40,500Retained earnings 9,500Total 65,000 65,000 The following is a summary of the transactions for the year:a. Sales of services, $100,000, of which $30,000 was on credit.b. Collected on accounts receivable, $27,300.c. Issued shares of common stock in exchange for $10,000 in cash.d. Paid salaries, $50,000 (of which $9,000 was for salaries payable).e. Paid miscellaneous expenses, $24,000.f. Purchased equipment for $15,000 in cash.g. Paid $2,500 in cash dividends to shareholders.Required:1. Set up the necessary T-accounts and enter the beginning balances from the trial balance.
Selected year-end account balances from the adjusted trial balance as of December 31, 2017, for Bridgeport Corp. is provided below. Debit Credit Accounts Receivable $66,790 Dividends 24,200 Depreciation Expense 12,140 Equipment 195,780 Salaries and Wages Expense 83,810 Accounts Payable $48,760 Accumulated Depreciation—Equipment 105,620 Unearned Rent Revenue 21,070 Service Revenue 169,100 Rent Revenue 5,700 Rent Expense 3,310 Retained Earnings 56,860 Supplies Expense 1,290 Prepare closing entries. Determine the post-closing balance in Retained Earnings. (Post entries in the order of journal entries presented in the previous part.) Retained Earnings choose a transaction date enter a debit amount choose a transaction date enter a credit amount choose a transaction date enter a debit amount choose a transaction date…
These items are taken from the financial statements of Bonita Industries at December 31, 2017. Buildings $99,452Accounts receivable 11,844Prepaid insurance 3,008Cash 11,130Equipment 77,456Land 57,528Insurance expense 733Depreciation expense 4,982Interest expense 2,444Common stock 56,400Retained earnings (January 1, 2017) 37,600Accumulated depreciation—buildings 42,864Accounts payable 8,930Notes payable 87,984Accumulated depreciation—equipment 17,597Interest payable 3,384Service revenue 13,818 Prepare a classified balance sheet. Assume that $12,784 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.)
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The adjusted trial balance of Chris Adams Co. as of December 31, 2020, contains the following. Chris Adams CO.ADJUSTED TRIAL BALANCEDECEMBER 31, 2020 Debit Credit Cash $20,507 Accounts Receivable 7,955 Prepaid Rent 3,315 Equipment 19,085 Accumulated Depreciation-Equipment $5,930 Notes Payable 6,735 Accounts Payable 6,507 Common Stock 21,035 Retained Earnings 12,345 Dividends 4,035 Service Revenue 12,625 Salaries and Wages Expense 7,875 Rent Expense 2,182 Depreciation Expense 223 Interest Expense 161 Interest Payable 161 $65,338 $65,338 Prepare an income statement. Prepare a statement of retained earnings. Prepare a classified balance sheet.
Prepare the Statement of Comprehensive Income of Royal Traders for the year ended 28February 2021.INFORMATIONThe trial balance, adjustments and additional information given below were extracted from the accounting records ofRoyal Traders on 28 February 2021, the end of the financial year.ROYAL TRADERSPRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2021Balance sheet accounts sectionCapital 301 000Drawings 134 720Vehicles at cost 360 000Equipment at cost 240 000Accumulated depreciation on vehicles 186 000Accumulated depreciation on equipment 62 000Trading inventory 140 000Debtors control 62 000Provision for bad debts 8 000Bank 42 800Cash float 1 000 Creditors control 82 800Mortgage loan: Leo Bank (18% p.a.) 160 000 Nominal accounts section Sales 1 000 000Cost of sales 480 000Sales returns 8 000Salaries and wages 178 000Bad debts 2 000Stationery 4 000Rent expense 42 880Motor expenses 34 000Bad debts recovered 2 000Telephone 14 000Electricity and water 24 000Bank charges 6 000Insurance 12…
Prepare an income statement, balance sheet and statement of owner’s equity for theyear ended January 31, 2018 from the following adjusted trial balance:P. S SuppliesAdjusted Trial BalanceDecember 31, 2012Accounts Debit CreditCash $2,000Prepaid insurance 2,000Office supplies 600Office equipment 16,000Accumulated depreciation $3,000Accounts payable 5,000Salaries payable 900Unearned service revenue 2,500C. Devours, capital 7,450C. Devours, drawing 5,600Service revenue 15,350Salaries expense 4,600Depreciation expense 1,000Supplies expense 400Insurance expense 2,000Totals $34,200 $34,200
The adjusted trial balance of Mark Cooper Co. as of December 31, 2020, contains the following. MARK COOPER CO.ADJUSTED TRIAL BALANCEDECEMBER 31, 2020 Debit Credit Cash $20,287 Accounts Receivable 7,735 Prepaid Rent 3,095 Equipment 18,865 Accumulated Depreciation-Equipment $5,710 Notes Payable 6,515 Accounts Payable 6,287 Common Stock 20,815 Retained Earnings 12,125 Dividends 3,815 Service Revenue 12,405 Salaries and Wages Expense 7,655 Rent Expense 2,198 Depreciation Expense 207 Interest Expense 145 Interest Payable 145 $64,002 $64,002 (a) Prepare an income statement. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) MARK COOPER CO.Income Statementchoose the…
The adjusted trial balance of Mark Cooper Co. as of December 31, 2020, contains the following. MARK COOPER CO.ADJUSTED TRIAL BALANCEDECEMBER 31, 2020 Debit Credit Cash $20,287 Accounts Receivable 7,735 Prepaid Rent 3,095 Equipment 18,865 Accumulated Depreciation-Equipment $5,710 Notes Payable 6,515 Accounts Payable 6,287 Common Stock 20,815 Retained Earnings 12,125 Dividends 3,815 Service Revenue 12,405 Salaries and Wages Expense 7,655 Rent Expense 2,198 Depreciation Expense 207 Interest Expense 145 Interest Payable 145 $64,002 $64,002 (a) Correct answer icon Your answer is correct. Prepare an income statement. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)…
The adjusted trial balance of Edward Cooper Co. as of December 31, 2020, contains the following. EDWARD COOPER CO.ADJUSTED TRIAL BALANCEDECEMBER 31, 2020 Debit Credit Cash $20,562 Accounts Receivable 8,010 Prepaid Rent 3,370 Equipment 19,140 Accumulated Depreciation-Equipment $5,985 Notes Payable 6,790 Accounts Payable 6,562 Common Stock 21,090 Retained Earnings 12,400 Dividends 4,090 Service Revenue 12,680 Salaries and Wages Expense 7,930 Rent Expense 2,178 Depreciation Expense 227 Interest Expense 165 Interest Payable 165 $65,672 $65,672 Prepare an income statement Prepare a statement of retained earnings. Prepare a classified balance sheet.
. Alena Co. was organized on July 1, 2017. Quarterly financial statements are prepared. The unadjustedand adjusted trial balances as of September 30 are shown below.ALENA CO.Trial BalanceSeptember 30, 2017Unadjusted AdjustedDr. Cr. Dr. Cr.Cash 9,500 9,500Accounts Receivable 11,500 12,700Supplies 1,700 750Prepaid Rent 2,300 600Equipment 20,000 20,000Accumulated Depreciation—Equipment 0 800Notes Payable 11,000 11,000Accounts Payable 2,700 2,700Salaries and Wages Payable 0 850Interest Payable 0 150Unearned Rent Revenue 2,000 550Owner’s Capital 23,000 23,000Owner’s Drawings 1,900 1,900Service Revenue 17,000 18,200Rent Revenue 1,510 2960Salaries and Wages Expense 7,000 7850Rent Expense 1,900 3,600Depreciation Expense 800Supplies Expense 950Utilities Expense 1,410 1,410Interest Expense 150Total 57,210 57,210 60,210 60,210Instructions(a)Journalize the adjusting entries that were made.(b) If the note bears interest at 10%, how many months has it been outstanding?