Prepare the balance sheet for 2019 InstructionsOn November 30, 2019, Davis Company had the following account balances:CashAccounts ReceivableAllowance for Doubtful AccountsInventorySuppliesLandBuildings and EquipmentAccumulated DepreciationAccounts PayableCommon Stock, no par (2,000 shares)Retained Earnings (1/1/2019)DividendsSales RevenueCost of Goods SoldSalaries ExpenseAdvertising ExpenseOther ExpensesDateDebitTransactionBOLIGSI$3,0909,90017,7501,4009,00042,0002,00036,86012,5008,1004,500Credit$1004,20010,70020,00042,400During the month of December, Davis entered into the following transactions:69,700W InstructionsDateDec. 4714182021272831TransactionMade cash sales of $3,000; the cost of the inventory sold was $1,800.Purchased $2,400 of inventory on credit.Collected $900 of accounts receivable.Sold land for $7,800; the land originally cost $5,000.Made credit sales of $4,000; the cost of the inventory sold was $2,400.Returned $360 of defective inventory to supplier for credit to the Davis Company's account.Purchased $1,250 of inventory for cash.Paid $1,100 of accounts payable.Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note forthe balance.Required:1. Prepare general journal entries to record the preceding transactions.2. Post to general ledger T-accounts.3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:a. accrued salaries at year-end total $1,200;b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with noresidual value;c. supplies on hand at the end of the year total $630;d. bad debts expense for the year totals $830;e. the income tax rate is 30%; income taxes are payable in the first quarter of 20204. Prepare the company's financial statements for 2019.5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.

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Answered: Prepare the balance sheet for 2019

Business

Accounting

Prepare the balance sheet for 2019

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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