Gregg’s Shipping Supplies Ltd- Barbados Branch Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash 950,000 Accounts Receivable 700,000 Allowance for bad debt 45,000 Merchandise Inventory 1,200,000 Store Supplies 180,000 Prepaid Insurance 132,000 Prepaid rent 248,500 Furnitures and fixtures 800,000 Accumulated depreciation - Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 45,000 Salary payable Interest payable 33,000 Unearned Sales revenue 455,000 Long term loan 900,000 Gregg's Capital 1,700,000 Gregg's Withdrawals 105,000 Sales Revenue 4,902,500 Sales discount 150,000 Sales returns and allowances 105,000 Cost of goods sold 988,000 Salaries expense 605,000 Insurance expense 148,500 Utilities expense 405,000 Rent expense 284,000 Depreciaton expense - Furniture and fixtures Depreciation expense - Motor truck Store supplies expense Gain on Disposal of old motor truck 41,500 Bad Debt Expense Interest Expense 8,201,000 8,201,000 The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $80,000. (ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) 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. (v) The motor truck was acquired on May 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $10,000 (vi) Salaries earned by employees not yet paid amounted to $108,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $24,000. (viii) On June 30, 2022, $85,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $70,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022.[Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022 d) Prepare the company’s statement of owner’s equity at June 30, 2022 e) Prepare the company’s classified balance sheet at June 30, 2022

Gregg’s Shipping Supplies Ltd- Barbados Branch Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash 950,000 Accounts Receivable 700,000 Allowance for bad debt 45,000 Merchandise Inventory 1,200,000 Store Supplies 180,000 Prepaid Insurance 132,000 Prepaid rent 248,500 Furnitures and fixtures 800,000 Accumulated depreciation - Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 45,000 Salary payable Interest payable 33,000 Unearned Sales revenue 455,000 Long term loan 900,000 Gregg's Capital 1,700,000 Gregg's Withdrawals 105,000 Sales Revenue 4,902,500 Sales discount 150,000 Sales returns and allowances 105,000 Cost of goods sold 988,000 Salaries expense 605,000 Insurance expense 148,500 Utilities expense 405,000 Rent expense 284,000 Depreciaton expense - Furniture and fixtures Depreciation expense - Motor truck Store supplies expense Gain on Disposal of old motor truck 41,500 Bad Debt Expense Interest Expense 8,201,000 8,201,000 The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $80,000. (ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) 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. (v) The motor truck was acquired on May 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $10,000 (vi) Salaries earned by employees not yet paid amounted to $108,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $24,000. (viii) On June 30, 2022, $85,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $70,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022.[Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022 d) Prepare the company’s statement of owner’s equity at June 30, 2022 e) Prepare the company’s classified balance sheet at June 30, 2022

Name: Gregg’s Shipping Supplies Ltd- Barbados BranchTrial Balance as at June
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Gregg’s Shipping Supplies Ltd- Barbados BranchTrial Balance as at June 30, 2022A/C NameTrial Balance DRCRCash950,000 Accounts Receivable700,000 Allowance for bad debt 45,000Merchandise Inventory1,200,000 Store Supplies180,000 Prepaid Insurance132,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Gregg’s Shipping Supplies Ltd- Barbados Branch
Trial Balance as at June 30, 2022

A/C Name

Trial Balance

	DR	CR
Cash	950,000
Accounts Receivable	700,000
Allowance for bad debt		45,000
Merchandise Inventory	1,200,000
Store Supplies	180,000
Prepaid Insurance	132,000
Prepaid rent	248,500
Furnitures and fixtures	800,000
Accumulated depreciation - Furniture and Fixtures		79,000

Motor Truck	1,200,000
Accumulated depreciation - Motor Truck
Accounts payable		45,000
Salary payable
Interest payable		33,000
Unearned Sales revenue		455,000
Long term loan		900,000
Gregg's Capital		1,700,000
Gregg's Withdrawals	105,000
Sales Revenue		4,902,500

Sales discount	150,000
Sales returns and allowances	105,000
Cost of goods sold	988,000
Salaries expense	605,000
Insurance expense	148,500
Utilities expense	405,000
Rent expense	284,000
Depreciaton expense - Furniture and fixtures
Depreciation expense - Motor truck
Store supplies expense

Gain on Disposal of old motor truck		41,500
Bad Debt Expense
Interest Expense


	8,201,000	8,201,000

The following additional information is available at June 30, 2022:
(i) Store Supplies on hand at June 30, 2022 amounted to $80,000.
(ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022
(iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.
(iv) 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.
(v) The motor truck was acquired on May 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $10,000
(vi) Salaries earned by employees not yet paid amounted to $108,000 at June 30, 2022.
(vii) Accrued interest expense as of June 30, 2022, $24,000.
(viii) On June 30, 2022, $85,000 of the previously unearned sales revenue had been earned.
(ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for Bad Debts should be $70,000.
(x) After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,100,000 worth of inventory on hand at June 30,2022
Other data:
(xi) The business is expected to make principal payments totalling $250,000 towards the
loan during the fiscal year to June 30 ,2023

Required:
a) Prepare the necessary adjusting journal entries on June 30, 2022.[Narrations are not required]
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022
d) Prepare the company’s statement of owner’s equity at June 30, 2022
e) 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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