The problem to be resolved: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the end of the company’s financial year. The company is owned by Samuel Maximo and is in the business of buying and selling movies on tapes. Trial Balance as at July 31, 2021 Trial Balance A/C Name DR CR DR CR Cash 750,000 Accounts receivable 290,000 Allownace for bad debt 25,000 Merchandise Inventory 167,050 Store Supplies 120,000 Prepaid Rent 510,000 Computer andEquipent 1,200,000 Accumulated depreciation - Computer and equipment Delivery Truck 1,900,000 Accumulated depreciation - Delivery Chuck 150,000 Accounts payable 400,000 Wages payable Unearned Sales revenue 150,000 Notes Payabe, Long term 1,000,000 Samuel Maximo, Capital 2,500,000 Samuel Maximo, Withdrawals 105,000 Sales revenue 2,833,580 Sales discount 73,250 Sales returns and allowances 52,100 Cost of goods sold 495,000 Wages expense 325,125 Rent Expence 680,000 Depreciation expense - Computer and Equipment Depreciation expense -Delivery truck Store Supplies expense 65,000 Utilities Expenses 220,000 Bad debt expense Interest expense 105,555 Total 7,058,580 7,058,580 The following additional information is available at July 31, 2021: Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February 2022. The computer and equipment were purchased on December 1, 2020 and have an estimated useful life of 10 years. This asset is depreciated on the double-declining depreciation method down to a residual value of $100,000. The company has two deliver trucks and uses the units of production method to compute the depreciation charges. One of the trucks was purchased for $800,000 on August 1, 2018, and is recognized as truck A. The other which is recognized as truck B was purchased for $1,100,000 on October 1, 2020. The expected useful life of both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is $200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in 2020/2021. Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021. A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory on hand. At July 31, 2021 $105,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the estimated uncollectible on account receivable should be $29,050. REQUIRED: (1-6) Prepare the necessary adjusting journal entries on July 31, 2021. [Narrations are not required] Prepare Columbus Ltd multiple-step income statement for the year ended July 31, 2021. Prepare Columbus Ltd statement of owner’s equity for the year ended July 31, 2021. Prepare Columbus Ltd classified balance sheet at July 31, 2021. Prepare the closing entries Prepare the post-closing trial balance

The problem to be resolved: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the end of the company’s financial year. The company is owned by Samuel Maximo and is in the business of buying and selling movies on tapes. Trial Balance as at July 31, 2021 Trial Balance A/C Name DR CR DR CR Cash 750,000 Accounts receivable 290,000 Allownace for bad debt 25,000 Merchandise Inventory 167,050 Store Supplies 120,000 Prepaid Rent 510,000 Computer andEquipent 1,200,000 Accumulated depreciation - Computer and equipment Delivery Truck 1,900,000 Accumulated depreciation - Delivery Chuck 150,000 Accounts payable 400,000 Wages payable Unearned Sales revenue 150,000 Notes Payabe, Long term 1,000,000 Samuel Maximo, Capital 2,500,000 Samuel Maximo, Withdrawals 105,000 Sales revenue 2,833,580 Sales discount 73,250 Sales returns and allowances 52,100 Cost of goods sold 495,000 Wages expense 325,125 Rent Expence 680,000 Depreciation expense - Computer and Equipment Depreciation expense -Delivery truck Store Supplies expense 65,000 Utilities Expenses 220,000 Bad debt expense Interest expense 105,555 Total 7,058,580 7,058,580 The following additional information is available at July 31, 2021: Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February 2022. The computer and equipment were purchased on December 1, 2020 and have an estimated useful life of 10 years. This asset is depreciated on the double-declining depreciation method down to a residual value of $100,000. The company has two deliver trucks and uses the units of production method to compute the depreciation charges. One of the trucks was purchased for $800,000 on August 1, 2018, and is recognized as truck A. The other which is recognized as truck B was purchased for $1,100,000 on October 1, 2020. The expected useful life of both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is $200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in 2020/2021. Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021. A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory on hand. At July 31, 2021 $105,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the estimated uncollectible on account receivable should be $29,050. REQUIRED: (1-6) Prepare the necessary adjusting journal entries on July 31, 2021. [Narrations are not required] Prepare Columbus Ltd multiple-step income statement for the year ended July 31, 2021. Prepare Columbus Ltd statement of owner’s equity for the year ended July 31, 2021. Prepare Columbus Ltd classified balance sheet at July 31, 2021. Prepare the closing entries Prepare the post-closing trial balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The problem to be resolved:

The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the end of the company’s financial year. The company is owned by Samuel Maximo and is in the business of buying and selling movies on tapes.

Trial Balance as at July 31, 2021

Trial Balance
A/C Name DR CR	DR	CR
Cash	750,000
Accounts receivable	290,000
Allownace for bad debt		25,000
Merchandise Inventory	167,050
Store Supplies	120,000
Prepaid Rent	510,000
Computer andEquipent	1,200,000
Accumulated depreciation - Computer and equipment
Delivery Truck	1,900,000
Accumulated depreciation - Delivery Chuck		150,000
Accounts payable		400,000
Wages payable
Unearned Sales revenue		150,000
Notes Payabe, Long term		1,000,000
Samuel Maximo, Capital		2,500,000
Samuel Maximo, Withdrawals	105,000
Sales revenue		2,833,580
Sales discount	73,250
Sales returns and allowances	52,100
Cost of goods sold	495,000
Wages expense	325,125
Rent Expence	680,000
Depreciation expense - Computer and Equipment
Depreciation expense -Delivery truck
Store Supplies expense	65,000
Utilities Expenses	220,000
Bad debt expense
Interest expense	105,555
Total	7,058,580	7,058,580

The following additional information is available at July 31, 2021:

Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February 2022.
The computer and equipment were purchased on December 1, 2020 and have an estimated useful life of 10 years. This asset is depreciated on the double-declining depreciation method down to a residual value of $100,000.
The company has two deliver trucks and uses the units of production method to compute the depreciation charges. One of the trucks was purchased for $800,000 on August 1, 2018, and is recognized as truck A. The other which is recognized as truck B was purchased for $1,100,000 on October 1, 2020. The expected useful life of both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is $200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in 2020/2021.
Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021.
A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory on hand.
At July 31, 2021 $105,000 of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the estimated uncollectible on account receivable should be $29,050.

REQUIRED: (1-6)

Prepare the necessary adjusting journal entries on July 31, 2021. [Narrations are not required]
Prepare Columbus Ltd multiple-step income statement for the year ended July 31, 2021.
Prepare Columbus Ltd statement of owner’s equity for the year ended July 31, 2021.
Prepare Columbus Ltd classified balance sheet at July 31, 2021.
Prepare the closing entries
Prepare the post-closing trial balance

Expert Solution

Step by step

Solved in 2 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.