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The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables 6,471 Cash in Hand 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.

The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables 6,471 Cash in Hand 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.

Intermediate Accounting: Reporting And Analysis
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6E: Balance Sheet Baggett Companys balance sheet accounts and amounts as of December 31, 2019, are shown...
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The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance. 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables Cash in Hand 6,471 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.
Transcribed Image Text:The following balances were extracted from the books of Good, Gooder & Goodest Limited at December 31, 2021: Balances at December 31, 2021 Sales 138,078 Purchases 82,350 Carriage 5,144 Drawings 7,800 Rent, Rates & Insurance. 6,622 3,001 Postage and Stationery Advertising 1,330 Salaries and Wages 26,420 Bad Debts 877 Allowance and Doubtful Debts 130 Accounts Receivable 12,120 Accounts Payables Cash in Hand 6,471 177 Cash at Bank 1,002 Inventory at January 1, 2021 11,927 Equipment at cost 58,000 Accumulated Depreciation at January 1, 2021 19,000 Capital 53,091 Total 433.550 The following additional information at December 31, 2021 is available: a) Rent is accrued by $210 b) Rates have been prepaid by $880 c) $2,211 of Carriage represents carriage inwards on purchases d) Equipment is to be depreciated at 15% per annum using straight line method e) The allowance for doubtful debts to be increased by $40 f) Inventory at the close of business has been valued at $13,551 Required: 1) From the balances totalling $433,550 prepare a Trial Balance for the company clearly showing debits and credits. (Note all balances should be posted on the side that it is normal for it to have balance b/d. Example Cash at bank is a debit balance. 2) Prepare Income Statement for the year ending December 31, 2021 3) Prepare Balance Sheet at December 31, 2021.
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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