Homework Help is Here – Start Your Trial Now!
Business
Accounting
A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense 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 DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 125,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 CR 80,000 59,000 50,000 28,000 198,500 2,185,375 2,900,000 3,250,000 58,000 8,808,875 8,808,875

A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense 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 DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 125,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 CR 80,000 59,000 50,000 28,000 198,500 2,185,375 2,900,000 3,250,000 58,000 8,808,875 8,808,875

Survey of Accounting (Accounting I)
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...
See similar textbooks
icon
Related questions
Question

Gregg’s Shipping Supplies Ltd (GSSL) trades in the buying and selling of ship spares and has several branches within the Caribbean. Recently the company has seen a rapid increase in demand of its products across all branches and is therefore in need of additional financing to adequately boost its supply inventory. The corporate banking head of Bankers Choice Bank is requesting a full set of financial statements to ensure that granting the loan to GSSL would be financially feasible during a period when many businesses are facing financial challenges. The company financial year ends on June 30 each year and you have been tasked with the responsibility to prepare the financial information for the branch that is linked to your first name initial.

Trinidad Branch

Required:
a) Prepare the necessary adjusting journal entries on June 30, 2022

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

A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense 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 DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 125,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 CR 80,000 59,000 50,000 28,000 198,500 2,185,375 2,900,000 3,250,000 58,000 8,808,875 8,808,875
Transcribed Image Text:A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense 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 DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 125,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 CR 80,000 59,000 50,000 28,000 198,500 2,185,375 2,900,000 3,250,000 58,000 8,808,875 8,808,875
The following additional information is available at June 30, 2022: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) 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. (xi) 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 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 earned. 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: The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023
Transcribed Image Text:The following additional information is available at June 30, 2022: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) 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. (xi) 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 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 earned. 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: The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023
Expert Solution
steps

Step by step

Solved in 2 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Events after the reporting period
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS