The following additional information is available at June 30, 2022: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. (xi) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023
The following additional information is available at June 30, 2022: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. (xi) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....
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Prepare the necessary
Prepare the Adjusted
Prepare the company’s multiple-step income statement for the period ending
June 30, 2022
Prepare the company’s statement of owner’s equity at June 30, 2022
Prepare the company’s classified balance sheet at June 30, 2022
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Prepare the company’s statement of owner’s equity at June 30, 2022
Prepare the company’s classified balance sheet at June 30, 2022
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