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 $ 68,500 250,000 5,000 35,000 450,000 Credits $ 190,000 40,000 15,000 6,000 500 400,000 70,000 600,000 360,000 90,000 15,000 45,000 1,000 2,000 $ 1,321,500 $ 1,321,500 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 $ 68,500 250,000 5,000 35,000 450,000 Credits $ 190,000 40,000 15,000 6,000 500 400,000 70,000 600,000 360,000 90,000 15,000 45,000 1,000 2,000 $ 1,321,500 $ 1,321,500 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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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
$ 68,500
250,000
5,000
35,000
450,000
Credits
$ 190,000
40,000
15,000
6,000
500
400,000
70,000
600,000
360,000
90,000
15,000
45,000
1,000
2,000
$ 1,321,500 $ 1,321,500
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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