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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

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
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 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

  1. Unearned sales revenue, still Not earned at December 31st, 2016 amounted to $120000.
  2. The prepaid insurance of $156000 was paid on August 1st 2016 for 6-months to January 2017.
  3. 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.
  4. Accrued travelling expense amounted to $2300 at December 31, 2016.
  5. A physical count of inventory at December 31, 2016, reveals $315000 worth of inventory on hand.

 

Requirements

 

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