alaries earned by employees and not yet paid amounted to $350,000 on Dec 31, 2021. Required: a) Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending December 31, 2021. c) Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical A-Town Division, i.e. ▪ A Multiple-step income statement & a Statement of owner’s equity for the year ended December 31, 2021 ▪ A Classified balance sheet, in report format, at December 31, 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Salaries earned by employees and not yet paid amounted to $350,000 on Dec 31, 2021.

 

Required:

a) Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required]

b) Prepare the Adjusted Trial balance for the period ending December 31, 2021.

c) Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical A-Town Division, i.e.

▪ A Multiple-step income statement & a Statement of owner’s equity for the year ended December 31, 2021

▪ A Classified balance sheet, in report format, at December 31, 2021.  

A/C Name
Belvidere Pharmaceuticals A-Town Division
Trial Balance as of December 31, 2021
Cash
Accounts receivable
Allowance for bad debt
Other debtors
Merchandise Inventory
Store Supplies
Prepaid Insurance
Prepaid rent
Furniture & Equipment
Accumulated deprecation-Furniture and equipment
Delivery Truck
Accumulated depreciation- Delivery Truck
Accounts payable
Salary payable
Interest payable
Unearned Sales revenue
Note Payable, long term
Patty Patterson, Capital
Withdrawals
Sales revenue
Sales discount
Sales returns and allowances
Cost of goods sold
Salaries expense
Insurance Expense
Utilities Expense
Rent Expense
Depreciation Expense - Furniture and Equipment
Depreciation Expense - Delivery Truck
Store Supplies Expense
Gain/loss on Disposal of Delivery truck
Bad-Debt Expense
Interest Expense
Trial Balance
DR
1,500,000
4,000,000
4,000,000
2,000,800
2,250,000
3,200,000
6,000,000
3,600,000
250,000
1,800,000
1,000,000
11,000,000
12,000,000
1,500,000
2,800,000
CR
360,000
2,320,000
2,656,282
1,200,000
1,200,000
4,500,000
17,600,000
27,450,000
385,482
57,286,282 57,286,282
2
Transcribed Image Text:A/C Name Belvidere Pharmaceuticals A-Town Division Trial Balance as of December 31, 2021 Cash Accounts receivable Allowance for bad debt Other debtors Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture & Equipment Accumulated deprecation-Furniture and equipment Delivery Truck Accumulated depreciation- Delivery Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Note Payable, long term Patty Patterson, Capital Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture and Equipment Depreciation Expense - Delivery Truck Store Supplies Expense Gain/loss on Disposal of Delivery truck Bad-Debt Expense Interest Expense Trial Balance DR 1,500,000 4,000,000 4,000,000 2,000,800 2,250,000 3,200,000 6,000,000 3,600,000 250,000 1,800,000 1,000,000 11,000,000 12,000,000 1,500,000 2,800,000 CR 360,000 2,320,000 2,656,282 1,200,000 1,200,000 4,500,000 17,600,000 27,450,000 385,482 57,286,282 57,286,282 2
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