A/C Name Gregg's Shipping Supplies Ltd- Trinidad Branch Trial Balance as at June 30, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture and fixtures Accumulated depreciation-Furniture and Fixtures Motor Truck Accumulated depreciation - Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Long-term loan Gregg's, Capital Gregg's, Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense DR 1,000,000 1,000,000 1,200,000 205,000 184,950 287,035 600,000 1,200,000 125,000 160,500 145,400 1,055,000 808,000 184,950 325,000 328,040 CR 80,000 59,000 50,000 28,000 198,500 2,185,375 2,900,000 3,250,000 58,000 8,808,875 8,808,875
Gregg’s Shipping Supplies Ltd (GSSL) trades in the buying and selling of ship spares and has several branches within the Caribbean. Recently the company has seen a rapid increase in demand of its products across all branches and is therefore in need of additional financing to adequately boost its supply inventory. The corporate banking head of Bankers Choice Bank is requesting a full set of financial statements to ensure that granting the loan to GSSL would be financially feasible during a period when many businesses are facing financial challenges. The company financial year ends on June 30 each year and you have been tasked with the responsibility to prepare the financial information for the branch that is linked to your first name initial.
Trinidad Branch
Required:
a) Prepare the necessary
b) Prepare the Adjusted
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
![A/C Name
Gregg's Shipping Supplies Ltd- Trinidad Branch
Trial Balance as at June 30, 2022
Trial Balance
Cash
Accounts receivable
Allowance for bad debt
Merchandise Inventory
Store Supplies
Prepaid Insurance
Prepaid rent
Furniture and fixtures
Accumulated depreciation-Furniture and Fixtures
Motor Truck
Accumulated depreciation - Motor Truck
Accounts payable
Salary payable
Interest payable
Unearned Sales revenue
Long-term loan
Gregg's, Capital
Gregg's, Withdrawals
Sales revenue
Sales discount
Sales returns and allowances
Cost of goods sold
Salaries expense
Insurance Expense
Utilities Expense
Rent Expense
Depreciation Expense - Furniture & Fixtures
Depreciation Expense - Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck
Bad-Debt Expense
Interest Expense
DR
1,000,000
1,000,000
1,200,000
205,000
184,950
287,035
600,000
1,200,000
125,000
160,500
145,400
1,055,000
808,000
184,950
325,000
328,040
CR
80,000
59,000
50,000
28,000
198,500
2,185,375
2,900,000
3,250,000
58,000
8,808,875 8,808,875](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e6c360a-7a14-41b5-8e17-2df06c301432%2F04ec5464-710f-40b3-ba58-b9cd1d521c08%2Frgjjdan_processed.jpeg&w=3840&q=75)
![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 $95,400.
Insurance of $184,950 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.
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.
(xi)
The motor truck was acquired on February 1, 2022, 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 $195,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $50,550.
On June 30, 2022, $66,000 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 $100,000.
After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,115,500 worth of inventory on hand at June 30,2022
Other data:
The business is expected to make principal payments totalling $345,000 towards the
loan during the fiscal year to June 30,2023](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e6c360a-7a14-41b5-8e17-2df06c301432%2F04ec5464-710f-40b3-ba58-b9cd1d521c08%2Fzofmiue_processed.jpeg&w=3840&q=75)
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