Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.12E
Financial statements and closing entries
• LO2–6, LO2–7
The December 31, 2018, adjusted
Account Title | Debits | Credits |
Cash | 21,000 | |
300,000 | ||
Prepaid rent | 10,000 | |
Inventory | 50,000 | |
Office equipment | 600,000 | |
Accumulated |
250,000 | |
Accounts payable | 60,000 | |
Note payable (due in six months) | 60,000 | |
Salaries payable | 8,000 | |
Interest payable | 2,000 | |
Common stock | 400,000 | |
100,000 | ||
Sales revenue | 800,000 | |
Cost of goods sold | 480,000 | |
Salaries expense | 120,000 | |
Rent expense | 30,000 | |
Depreciation expense | 60,000 | |
Interest expense | 4,000 | |
Advertising expense | 5,000 | |
Totals | 1,680,000 | 1,680,000 |
Required:
1. Prepare an income statement for the year ended December 31, 2018, and a classified
2. Prepare the necessary closing entries at December 31, 2018.
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Intermediate Accounting
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
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