Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise.Preparing a multi-step income statement, journalizing closing entries, and preparing a post-closing trial balanceThe adjusted trial balance of Rachael Rey Music Company at June 30, 2018, follows:RequirementsPrepare Rachael Rev’s multi-step income statement for the year ended June 30, 2018.Journalize Rachael Rev’s closing entries.Prepare a post-closing trial balance as of June 30, 2018. RACHAEL REY MUSIC COMPANYAdjusted Trial BalanceJune 30, 2018BalanceAccount TitleDebitCreditCash$ 4,000Accounts Receivable38,400Merchandise Inventory18,100Office Supplies300Furniture39,900Accumulated Depreciation-Furniture8,200Accounts Payable13,800Salaries Payable850Unearned Revenue7,500Notes Payable, long-term17,000Common Stock6,000Retained Earnings21,350Dividends40,000Sales Revenue184,000Cost of Goods Sold85,500Selling Expense18,600Administrative Expense12,000Interest Expense1,900Total$ 258,700$ 258,700

Income statement is a financial statement which is prepared at the end of an accounting period. It…

RACHAEL REY MUSIC COMPANY Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash $ 4,000 Accounts Receivable 38,400 Merchandise Inventory 18,100 Office Supplies 300 Furniture 39,900 Accumulated Depreciation-Furniture 8,200 Accounts Payable 13,800 Salaries Payable 850 Unearned Revenue 7,500 Notes Payable, long-term 17,000 Common Stock 6,000 Retained Earnings 21,350 Dividends 40,000 Sales Revenue 184,000 Cost of Goods Sold 85,500 Selling Expense 18,600 Administrative Expense 12,000 Interest Expense 1,900 Total $ 258,700 $ 258,700

RACHAEL REY MUSIC COMPANY Adjusted Trial Balance June 30, 2018 Balance Account Title Debit Credit Cash $ 4,000 Accounts Receivable 38,400 Merchandise Inventory 18,100 Office Supplies 300 Furniture 39,900 Accumulated Depreciation-Furniture 8,200 Accounts Payable 13,800 Salaries Payable 850 Unearned Revenue 7,500 Notes Payable, long-term 17,000 Common Stock 6,000 Retained Earnings 21,350 Dividends 40,000 Sales Revenue 184,000 Cost of Goods Sold 85,500 Selling Expense 18,600 Administrative Expense 12,000 Interest Expense 1,900 Total $ 258,700 $ 258,700

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

Chapter12: Intangibles

Section: Chapter Questions

Problem 2MC

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