Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their normal balances before adjustments: Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000 Notes Receivables 45,000 Retained Earnings 75,000 Office Supplies 12,000 Sales Revenues 640,000 Prepaid Insurance 72,000 Interest Income 12,000 Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000 Fixed Assets 120,000 Selling Expenses 21,000 Accum. Depr- Fixed assets 36,000 Salary and Wages Expense 105,000 Unearned Rent (Liability) 56,000 Rent Expense 15,000 Required Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019: The office supplies consumed during the year is Br 8,000 The Unexpired part of insurance is only Br 26,000 iii. Br 30,000 is earned sales revenues from the unearned advance collection Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000 Depreciation Expenses allocated for the year amounts to be Br 15,000 There are accrued interest of Br 8,000 on the notes receivable Prepare the following Financial Statements after adjustments on Dec-31- 2019. Balance Sheet Income Statement Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter3: Basic Accounting Systems: Accrual Basis

Section: Chapter Questions

Problem 3.6.4P: Adjustment process and financial statements Adjustment data for Ms. Ellen’s Laundry Inc. for the...

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Question

Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their normal balances before adjustments:

Required

Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019:
The office supplies consumed during the year is Br 8,000
The Unexpired part of insurance is only Br 26,000

iii. Br 30,000 is earned sales revenues from the unearned advance collection

Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000
Depreciation Expenses allocated for the year amounts to be Br 15,000
There are accrued interest of Br 8,000 on the notes receivable
Prepare the following Financial Statements after adjustments on Dec-31- 2019.
Balance Sheet
Income Statement
Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings

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