The following additional information was made available at December 31, 2018 a) Insurance of $1,600,000 was paid on January1, 2018 for the period January 2018 to April 2019. b) The company's building has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of So. c) The fixtures and fitings are being depreciated over ten (10) years on the double-declining method of deprecation, down to a residue of$128,849. d) Wages earned by the company's employees and NOT paid at December 31, 2018 amounted to $130,000. e) A physical count of inventory at December 31, 2018, reveals $405,000 worth of inventory on hand. ) The aging of the accounts receivable sche dule at December 31, 2018 indicated that the estimated uncollectible on accounts receivable is $120,000. g) Unearned sales revenue earned during December 2018, $100,000. b) Accruedinterest payable on mortgage $120,000 Required: 1. Prepare the nece ssary adjusting entries on December 31, 2018 2. Prepare the company's Mil tiple-step Income Statement for the year ended December 31, 2018. 3. Prepare the company's Statement of Owner's Equity for the year ended December 31, 2018 4. Prepare the company's classified Balance Sheet at December 31, 2018 5. Prepare the closing entries 6. Prepare the post-closing trial balance Scholes Shoes Ltd, is a retailerof children's school shoes and they have produced the following Unadjusted Trial Balance: Scholes Shoes Ltd Unadjusted Trial Balance as at Decemb er 31, 2018 A/CN ame Cash DR CR 1,500,000 1.200,000 Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Building Accumslated depreciation -Building Fixtures and Fittings Accumlated depreciation Fixtures and Fittings Accounts payable Wages payable Interest payable Uneamed S ales revemue Mortgage Scholes', Capital 100,000 400,000 90.000 1,600,000 10,000,000 3,000,000 1,200,000 240,000 900,000 200,000 2,300,000 6,500,000 Scholes', Withd raw als Sales reveme Sales discount 150,000 7,305,000 65,000 130,000 3,000,000 870,000 Sales retums and allowances Costof goods sold Wages Expense Insurance Expense Depreciation Expense - Buildirg Depreciation Expense - Fixtures and Fitirgs Suoplies Experse Utlities Expense Bad DebtExpense Travelling Expense Interest Expense 70,000 180,000 65,000 25,000 20,545,000 20,545,000

The following additional information was made available at December 31, 2018 a) Insurance of $1,600,000 was paid on January1, 2018 for the period January 2018 to April 2019. b) The company's building has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of So. c) The fixtures and fitings are being depreciated over ten (10) years on the double-declining method of deprecation, down to a residue of$128,849. d) Wages earned by the company's employees and NOT paid at December 31, 2018 amounted to $130,000. e) A physical count of inventory at December 31, 2018, reveals $405,000 worth of inventory on hand. ) The aging of the accounts receivable sche dule at December 31, 2018 indicated that the estimated uncollectible on accounts receivable is $120,000. g) Unearned sales revenue earned during December 2018, $100,000. b) Accruedinterest payable on mortgage $120,000 Required: 1. Prepare the nece ssary adjusting entries on December 31, 2018 2. Prepare the company's Mil tiple-step Income Statement for the year ended December 31, 2018. 3. Prepare the company's Statement of Owner's Equity for the year ended December 31, 2018 4. Prepare the company's classified Balance Sheet at December 31, 2018 5. Prepare the closing entries 6. Prepare the post-closing trial balance Scholes Shoes Ltd, is a retailerof children's school shoes and they have produced the following Unadjusted Trial Balance: Scholes Shoes Ltd Unadjusted Trial Balance as at Decemb er 31, 2018 A/CN ame Cash DR CR 1,500,000 1.200,000 Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Building Accumslated depreciation -Building Fixtures and Fittings Accumlated depreciation Fixtures and Fittings Accounts payable Wages payable Interest payable Uneamed S ales revemue Mortgage Scholes', Capital 100,000 400,000 90.000 1,600,000 10,000,000 3,000,000 1,200,000 240,000 900,000 200,000 2,300,000 6,500,000 Scholes', Withd raw als Sales reveme Sales discount 150,000 7,305,000 65,000 130,000 3,000,000 870,000 Sales retums and allowances Costof goods sold Wages Expense Insurance Expense Depreciation Expense - Buildirg Depreciation Expense - Fixtures and Fitirgs Suoplies Experse Utlities Expense Bad DebtExpense Travelling Expense Interest Expense 70,000 180,000 65,000 25,000 20,545,000 20,545,000

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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