The unadjusted trial balance of S&M Corporation as on June 30, 2020 are as follows: Cash $188,640 Salaries and wages expense (sales) $287,640 Inventory 538,640 Salaries and wages expense (office) 349,640 Sales revenue 4,278,640 Purchase returns 18,640 Unearned sales revenue 120,640 Sales returns and allowances 82,640 Purchases 2,789,640 Freight-in 75,640 Sales discounts 37,640 Accounts receivable 146,140 Purchase discounts 30,640 Sales commissions 86,640 Selling expenses 72,640 Telephone and Internet expense (sales) 20,640 Accounting and legal services 36,640 Utilities expense (office) 35,640 Insurance expense (office) 27,640 Miscellaneous office expenses 11,640 Advertising expense 57,640 Rent revenue 243,640 Delivery expense 96,640 Extraordinary loss (before tax) 73,640 Depreciation expense (office equipment) 51,640 Interest expense 179,640 Depreciation expense (sales equipment) 39,640 Common stock ($10 par) 903,640 S&M’s effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $689,640. Instructions ∙ Prepare income statement and balance sheet.
The unadjusted
|
Cash |
$188,640 |
Salaries and wages expense (sales) |
$287,640 |
|
Inventory |
538,640 |
Salaries and wages expense (office) |
349,640 |
|
Sales revenue |
4,278,640 |
Purchase returns |
18,640 |
|
Unearned sales revenue |
120,640 |
Sales returns and allowances |
82,640 |
|
Purchases |
2,789,640 |
Freight-in |
75,640 |
|
Sales discounts |
37,640 |
Accounts receivable |
146,140 |
|
Purchase discounts |
30,640 |
Sales commissions |
86,640 |
|
Selling expenses |
72,640 |
Telephone and Internet expense (sales) |
20,640 |
|
Accounting and legal services |
36,640 |
Utilities expense (office) |
35,640 |
|
Insurance expense (office) |
27,640 |
Miscellaneous office expenses |
11,640 |
|
Advertising expense |
57,640 |
Rent revenue |
243,640 |
|
Delivery expense |
96,640 |
Extraordinary loss (before tax) |
73,640 |
|
|
51,640 |
Interest expense |
179,640 |
|
Depreciation expense (sales equipment) |
39,640 |
Common stock ($10 par) |
903,640 |
S&M’s effective tax rate on all items is 30%. A physical inventory indicates that the ending inventory is $689,640.
Instructions
∙ Prepare income statement and balance sheet.
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