Wildhorse Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances. Unadjusted Adjusted Unadjusted Adjusted Accounts Payable $25,400 $25,400 Notes payable $35,000 $35,000 Accounts Receivable 31,000 31,000 Owner’s Capital 87,400 87,400 Accumulated Depr.—Equipment 35,000 46,000 Owner’s Drawings 10,000 10,000 Cash 25,000 25,000 Prepaid Insurance 10,200 2,500 Cost of Goods Sold 508,000 508,000 Property Tax Expense 2,500 Freight-Out 5,700 5,700 Property Taxes Payable 2,500 Equipment 145,000 145,000 Rent Expense 15,000 15,000 Depreciation Expense 11,000 Salaries and Wages Expense 96,000 96,000 Insurance Expense 7,700 Sales Revenue 720,000 720,000 Interest Expense 6,000 6,000 Sales Commissions Expense 6,500 11,000 Interest Revenue 2,100 2,100 Sales Commissions Payable 4,500 Inventory 30,000 30,000 Sales Returns and Allowances 8,000 8,000 Utilities Expense 8,500 8,500 1. Prepare a multiple-step income statement. (List other revenues before other expenses. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2. Prepare an owner's equity statement. (List items that increase owner's equity first.) 3. Prepare a balance sheet. Notes payable are due in 2025. (List Current Assets in order of liquidity.)

College Accounting (Book Only): A Career Approach

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ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 6E: After all revenue and expenses have been closed at the end of the fiscal period ended December 31,...

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Wildhorse Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company’s fiscal year on November 30, 2022, the following accounts appeared in two of its trial balances.

	Unadjusted	Adjusted		Unadjusted	Adjusted
Accounts Payable	$25,400	$25,400	Notes payable	$35,000	$35,000
Accounts Receivable	31,000	31,000	Owner’s Capital	87,400	87,400
Accumulated Depr.—Equipment	35,000	46,000	Owner’s Drawings	10,000	10,000
Cash	25,000	25,000	Prepaid Insurance	10,200	2,500
Cost of Goods Sold	508,000	508,000	Property Tax Expense		2,500
Freight-Out	5,700	5,700	Property Taxes Payable		2,500
Equipment	145,000	145,000	Rent Expense	15,000	15,000
Depreciation Expense		11,000	Salaries and Wages Expense	96,000	96,000
Insurance Expense		7,700	Sales Revenue	720,000	720,000
Interest Expense	6,000	6,000	Sales Commissions Expense	6,500	11,000
Interest Revenue	2,100	2,100	Sales Commissions Payable		4,500
Inventory	30,000	30,000	Sales Returns and Allowances	8,000	8,000
			Utilities Expense	8,500	8,500

1. Prepare a multiple-step income statement. (List other revenues before other expenses. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2. Prepare an owner's equity statement. (List items that increase owner's equity first.)

3. Prepare a balance sheet. Notes payable are due in 2025. (List Current Assets in order of liquidity.)

4. Journalize the adjusting entries that were made. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

5. Journalize the closing entries that are necessary. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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