Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017. Sun Energy Co. Unadjusted Trial Balance Year Ended December 31, 2017 Account Debit Credit Cash $5,000 Accounts Receivable 3,300 Merchandise Inventory 4,500 Buildings 2,400 Equipment 3,200 Accounts Payable $5,700 Salaries Payable 3,500 Common Stock 2,500 Dividends Sales Revenue 14,000 COGS 3,800 Salaries Expense 3,500 Totals $25,700 $25,700 You are also given the following supplemental information: • A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.

Following is the unadjusted trial balance for Sun Energy Co. on December 31, 2017. Sun Energy Co. Unadjusted Trial Balance Year Ended December 31, 2017 Account Debit Credit Cash $5,000 Accounts Receivable 3,300 Merchandise Inventory 4,500 Buildings 2,400 Equipment 3,200 Accounts Payable $5,700 Salaries Payable 3,500 Common Stock 2,500 Dividends Sales Revenue 14,000 COGS 3,800 Salaries Expense 3,500 Totals $25,700 $25,700 You are also given the following supplemental information: • A pending lawsuit, claiming $2,500 in damages, is considered likely to favor the plaintiff and can be reasonably estimated. Sun Energy Co. believes a customer may win a lawsuit for $3,500 in damages, but the outcome is only reasonably possible to occur. Sun Energy calculated warranty expense estimates of $210.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
The following is the adjusted trial balance for Henry Company: Henry Company Adjusted Trail Balance For the Year ended December 31,2013 Debits: Credits: Cash 9,235Accounts Receivable (net) 5,160Inventory 2,950Equipment (net) 14,290Accumulated Depreciation 2,500Accounts Payable 2,500Notes Payable 6,000Capital Stock 12,000Retained Earnings…
. 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?
The trial balances shown below are before and after adjustment for Crane Company at the end of its fiscal year. CRANE COMPANYTrial BalanceAugust 31, 2017 BeforeAdjustment AfterAdjustment Dr. Cr. Dr. Cr. Cash $10,390 $10,390 Accounts Receivable 8,730 9,330 Supplies 2,840 850 Prepaid Insurance 4,360 3,060 Equipment 16,660 16,660 Accumulated Depreciation—Equipment $3,749 $4,949 Accounts Payable 5,480 5,480 Salaries and Wages Payable 0 1,870 Unearned Rent Revenue 1,800 1,010 Common Stock 16,100 16,100 Retained Earnings 5,010 5,010 Dividends 2,680 2,680 Service Revenue 34,000 34,600 Rent Revenue 12,740 13,530 Salaries and Wages Expense 16,630 18,500 Supplies Expense 0 1,990 Rent Expense 16,589 16,589 Insurance Expense 0…
The following accounts appeared on the trial balance of Ashanti Company at December 31 , 2020. Notes Payable (short-term ) $191,000 Accounts Receivable $518,600 Accumulated Depreciation - Bldg. 788,000 Prepaid Insurance 56,050 Supplies 37,850 Salaries and Wages Payable 35,200 Common Stock 1,125,000 Debt Investments (long -term ) 280,400 Unappropriated Retained Earnings 318,300 Cash 175,250 Inventory 1,580,200 Bonds Payable Due 1/1 / 2 1,200,000 Land 465,000 Allowance for Doubtful Accts .7,850 Trading Securities 72,300 Copyrights 192,950 Interest Payable 4,800 Notes Receivable (due in 6 months ) 138,050 Buildings 1,927,000 Income Taxes Payable 155,000 Accounts Payable 410,000 Preferred Stock 750,000 Additional Paid-in Capital163,500 Appropriated Retained Earnings 295,000 Instructions : Compute each of the following : You must show your work. You may type your answers in the text submission box below or you can use the "Add File" button to upload a Word file or an Excel file . If this…
The accounts and balances shown below were gathered from Primer Corporation's trial balance on December 31, 2014. All adjusting entries have been made. Wages Payable ............................................$ 25,600Cash .................................................................17,700Mortgage Payable ....................................... 151,600Dividends Payable ......................................... 14,000Prepaid Rent ...................................................13,600Inventory ........................................................ 81,800Sinking Fund Assets ...................................... 52,400Short-Term Investments ................................15,200Premium on Bonds Payable ............................4,600Stock Investment in Subsidiary ..................102,400Taxes Payable ................................................ 22,800Accounts Payable ......................................... 24,800Accounts Receivable ....................................…
Below is a trial balance of Ali Mamat Enterprise, extracted after one year’s trading. Ali Mamat EnterpriseTrial Balance as at 31 December 2019Particulars Debit (RM) Credit (RM)Sales 190,576Purchases 119,832Salaries 56,527Motor expenses 2,416Rent 1,894Insurance 372General expenses 85Premises 95,420Motor vehicles 16,594Account receivables 26,740Account payable 16,524Cash at bank 16,519Cash in hand 342Drawings 8,425Capital 138,066TOTAL 345,166 345,166 Required:i. Statement of Profit or Loss and Others Comprehensive Income for the yearended 31 December 2019.ii. Statement of Financial Position as at 31 December 2019.
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Selected account balances from December 31, 2015, accounts balance of the Gracy Company are listed below: Balances: Inventory, January 1, 2015 $12,500Purchases 25,000Salaries Expense 5,000Rent Expense 3,250General and Admin Exp 2,500Sales $61,000Dividends Declared 3,500 In addition, the following information is available: ·$890 of salaries have accrued as of December 31.·On March 30, Gracy purchased a 12-month insurance policy for $240. The purchase was debited to Prepaid Insurance.·On December 1, the company paid 2 months' rent in advance. The $1500 payment was debited to Rent Expense.·In December, a customer paid $1,000 in advance for merchandise that will be shipped by Gracy in 2016. The amount received was credited to Sales.·Gracy estimates its bad debts to be 1% of sales…
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1. Below is a trial balance of Ali Mamat Enterprise, extracted after one year’s trading.Ali Mamat EnterpriseTrial Balance as at 31 December 2019Particulars Debit (RM) Credit (RM)Sales 190,576Purchases 119,832Salaries 56,527Motor expenses 2,416Rent 1,894Insurance 372General expenses 85Premises 95,420Motor vehicles 16,594Account receivables 26,740Account payable 16,524Cash at bank 16,519Cash in hand 342Drawings 8,425Capital 138,066TOTAL 345,166 345,166Required: i. Statement of Profit or Loss and Others Comprehensive Income for the year ended 31 December 2019.ii. Statement of Financial Position as at 31 December 2019.
Camilia Communications reported the following figures from its adjusted trial balance for its first year of business, which ended on July 31, 2018:Cash ₱2,900 Cost of Goods Sold ₱ 18,700Selling Expenses 1,400 Equipment, net 9,500Accounts Payable 4,300 Accrued Liabilities 1,800Common Stock 4,365 Net Sales Revenue 29,200Notes Payable, long-term 500 Accounts Receivable 3,200Merchandise Inventory 1,100 Interest Expense 65Administrative Expenses 3,300 ANSWER THE FOLLOWING:1. Prepare Camilia Communications‘s multi-step income statement for the year ended July 31, 2018.2. Prepare Camilia Communications‘s statement of retained earnings for the year ended July 31, 2018. Assume that there were no dividends declared during the year and that the business began on August 1, 2017.3. Prepare Camilia Communications‘s classified balance sheet at July 31, 2018. Use the report format.