Baltic Supplies presented with the following unadjusted trial balance as at December 31st 2016 Account Name Trial Balance Dr Cr Cash 620000 Accounts Receivable 410000 Merchandise Inventory 330000 Store Supplies 144800 Prepaid Insurance 156000 Building and Equipment 800000 Accumulated Depreciation-Building &Equipment 237000 Accounts Payable 435000 Travelling payable Unearned Sales Revenue 220000 Note payable - Long term 345000 Baltic, Captial 1791900 Baltic,Withdrawal 35000 Sales Revenue Earned 917000 Sales Discount 35000 Sales Returns & Allowance 42100 Cost of Goods Sold 585000 Salaries Expense 300000 Telephone Expense 33000 Depreciation Expense - Building & Equipment Insurance Expense 182000 Store Supplies Expense 45200 Electricity Expense 85000 Bad Debt Expense 49500 Travelling Expense 62000 Interest Expense 31300 Total 3945900 3945900 The following additional information was made available at December 31st 2016 Unearned sales revenue, still Not earned at December 31st, 2016 amounted to $120000. The prepaid insurance of $156000 was paid on August 1st 2016 for 6-months to January 2017. The building and equipment have estimated like of ten (10) years and is being depreciated on the straight – line method of depreciated down to a residual value of $10000. Accrued travelling expense amounted to $2300 at December 31, 2016. A physical count of inventory at December 31, 2016, reveals $315000 worth of inventory on hand. Requirements Prepare the necessary adjusting entries on December 31, 2016. Prepare the company’s multiple-step income statement for the year ended December 31, 2016 Prepare the company’s statement of owner’s equity for the year ended December 31, 2016

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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Baltic Supplies presented with the following unadjusted trial balance as at December 31^st 2016

Account Name	Trial Balance
	Dr	Cr
Cash	620000
Accounts Receivable	410000
Merchandise Inventory	330000
Store Supplies	144800
Prepaid Insurance	156000
Building and Equipment	800000
Accumulated Depreciation-Building &Equipment		237000
Accounts Payable		435000
Travelling payable
Unearned Sales Revenue		220000
Note payable - Long term		345000
Baltic, Captial		1791900
Baltic,Withdrawal	35000
Sales Revenue Earned		917000
Sales Discount	35000
Sales Returns & Allowance	42100
Cost of Goods Sold	585000
Salaries Expense	300000
Telephone Expense	33000
Depreciation Expense - Building & Equipment
Insurance Expense	182000
Store Supplies Expense	45200
Electricity Expense	85000
Bad Debt Expense	49500
Travelling Expense	62000
Interest Expense	31300
Total	3945900	3945900

The following additional information was made available at December 31^st 2016

Unearned sales revenue, still Not earned at December 31^st, 2016 amounted to $120000.
The prepaid insurance of $156000 was paid on August 1^st 2016 for 6-months to January 2017.
The building and equipment have estimated like of ten (10) years and is being depreciated on the straight – line method of depreciated down to a residual value of $10000.
Accrued travelling expense amounted to $2300 at December 31, 2016.
A physical count of inventory at December 31, 2016, reveals $315000 worth of inventory on hand.

Requirements

Prepare the necessary adjusting entries on December 31, 2016.
Prepare the company’s multiple-step income statement for the year ended December 31, 2016
Prepare the company’s statement of owner’s equity for the year ended December 31, 2016
Prepare the company’s classified balance sheet at December 31, 2016

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