Account Title Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals Debits $ 49,200 295,000 9,500 44,000 540,000 Credits $ 226,000 58,000 42,000 6,900 1,400 400,000 120,000 690,000 414,000 103,500 28,500 54,000 2,800 3,800 $ 1,544,300 $ 1,544,300 Required: 1-a. Prepare an income statement for the year ended December 31, 2024. 1-b. Prepare a classified balance sheet as of December 31, 2024. 2. Prepare the necessary closing entries on December 31, 2024.
Account Title Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals Debits $ 49,200 295,000 9,500 44,000 540,000 Credits $ 226,000 58,000 42,000 6,900 1,400 400,000 120,000 690,000 414,000 103,500 28,500 54,000 2,800 3,800 $ 1,544,300 $ 1,544,300 Required: 1-a. Prepare an income statement for the year ended December 31, 2024. 1-b. Prepare a classified balance sheet as of December 31, 2024. 2. Prepare the necessary closing entries on December 31, 2024.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A-5
Transcribed Image Text:Account Title
Cash
Accounts receivable
Prepaid rent
Inventory'
Office equipment
Accumulated depreciation
Accounts payable
Notes payable (due in six months)
Salaries payable
Interest payable
Common stock
Retained earnings
Sales revenue
Cost of goods sold
Salaries expense
Rent expense
Depreciation expense
Interest expense
Advertising expense
Totals
Debits
$ 49,200
295,000
9,500
44,000
540,000
414,000
103,500
28,500
54,000
Credits
$ 226,000
58,000
42,000
6,900
1,400
400,000
120,000
690,000
2,800
3,800
$ 1,544,300 $ 1,544,300
Required:
1-a. Prepare an income statement for the year ended December 31, 2024.
1-b. Prepare a classified balance sheet as of December 31, 2024.
2. Prepare the necessary closing entries on December 31, 2024.
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