d) Prepare Columbus Ltd classified balance sheet at July 31, 2021. e) Prepare the closing entries f) Prepare the post-closing trial balance
d) Prepare Columbus Ltd classified balance sheet at July 31, 2021. e) Prepare the closing entries f) Prepare the post-closing trial balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you answer requirements D-F please
![(iii)
The company has two deliver trucks and uses the units of production method to
compute the depreciation charges. One of the trucks was purchased for $800,000 on
August 1, 2018, and is recognized as truck A. The other which is recognized as truck
B was purchased for $1,100,000 on October 1, 2020. The expected useful life of
both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is
$200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles
in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in
2020/2021.
(iv)
Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021.
(v)
A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory
on hand.
(vi)
At July 31, 2021 $105,000 of the previously unearned sales revenue had been
earned.
(vii)
The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the
estimated uncollectible on account receivable should be $29,050.
REQUIRED: (A-F)
a)
Prepare the necessary adjusting journal entries on July 31, 2021. ĮNarrations are not
required]
b)
Prepare Columbus Ltd multiple-step income statement for the year ended July 3X, 2021.
c)
Prepare Columbus Lid statement of owner's equity for the year ended July 31, 2021.
d)
Prepare Columbus Ltd classified balance sheet at July 31, 2021.
e)
Prepare the closing entries
f)
Prepare the post-closing trial balance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F099adb52-7f28-4b31-b5b1-4b1a0870993f%2F3ca97b8b-26e3-466f-8ddb-32248f248abf%2F2i65uqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(iii)
The company has two deliver trucks and uses the units of production method to
compute the depreciation charges. One of the trucks was purchased for $800,000 on
August 1, 2018, and is recognized as truck A. The other which is recognized as truck
B was purchased for $1,100,000 on October 1, 2020. The expected useful life of
both truck is ten (10) years or 120,000 miles. And the residual value on both trucks is
$200,000. In the 2018/2019 financial year truck A drove 12,000 miles, 18,000 miles
in 2019/2020, and 21,000 miles in 2020/2021. Truck B drove 8,000 miles in
2020/2021.
(iv)
Wages earned by employees NOT yet paid amounted to 23,050 at July 31, 2021.
(v)
A physical count of inventory at July 31, 2021 reveals $165,070 worth of inventory
on hand.
(vi)
At July 31, 2021 $105,000 of the previously unearned sales revenue had been
earned.
(vii)
The aging of the Accounts Receivable schedule at July 31, 2021 indicated that the
estimated uncollectible on account receivable should be $29,050.
REQUIRED: (A-F)
a)
Prepare the necessary adjusting journal entries on July 31, 2021. ĮNarrations are not
required]
b)
Prepare Columbus Ltd multiple-step income statement for the year ended July 3X, 2021.
c)
Prepare Columbus Lid statement of owner's equity for the year ended July 31, 2021.
d)
Prepare Columbus Ltd classified balance sheet at July 31, 2021.
e)
Prepare the closing entries
f)
Prepare the post-closing trial balance
![The following trial balance was extracted from the books of Movies To The Max Ltd at
December 31, the end of the company's financial year. The company is owned by Samuel
Maximo and is in the business of buying and selling movies on tapes.
Trial Balance as at July 31, 2021
Trial Balance
A/C Name
DR
CR
Cash
Accounts receivable
Allowance for bad debt
Merchandise Inventory
Store Supplies
Prepaid Rent
|Computer and Equipment
|Accumulated depreciation -Computer and Equipment
Delivery Truck
|Accumulated depreciation - Delivery Truck
|Accounts payable
Wages payable
Unearned Sales revenue
750,000
290,500
25,000
167,050
120,000
510,000
1,200,000
1,900,000
150,000
400,000
150,000
Notes Payable, Long Term
Samuel Maximo, Capital
Samuel Maximo, Withdrawals
1,000,000
2,500,000
105,000
Sales revenue
2,833,580
Sales discount
73,250
Sales returns and allowances
Cost of goods sokd
Wages Expense
Rent Expense
Depreciation Expense - Computer and Equipment
Depreciation Expense -Delivery Truck
Store Supplies Expense
|Utilities Expense
Bad Debt Expense
Interest Expense
Total
52,100
495,000
325,125
680,000
65,000
220,000
105,555
7,058,580
7,058,580
The following additional information is available at July 31, 2021:
(i)
Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February
2022.
(ii)
The computer and equipment were purchased on December 1, 2020 and have an
estimated useful life of 10 years. This asset is depreciated on the double-declining
depreciation method down to a residual value of $100,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F099adb52-7f28-4b31-b5b1-4b1a0870993f%2F3ca97b8b-26e3-466f-8ddb-32248f248abf%2Fnp8im8d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following trial balance was extracted from the books of Movies To The Max Ltd at
December 31, the end of the company's financial year. The company is owned by Samuel
Maximo and is in the business of buying and selling movies on tapes.
Trial Balance as at July 31, 2021
Trial Balance
A/C Name
DR
CR
Cash
Accounts receivable
Allowance for bad debt
Merchandise Inventory
Store Supplies
Prepaid Rent
|Computer and Equipment
|Accumulated depreciation -Computer and Equipment
Delivery Truck
|Accumulated depreciation - Delivery Truck
|Accounts payable
Wages payable
Unearned Sales revenue
750,000
290,500
25,000
167,050
120,000
510,000
1,200,000
1,900,000
150,000
400,000
150,000
Notes Payable, Long Term
Samuel Maximo, Capital
Samuel Maximo, Withdrawals
1,000,000
2,500,000
105,000
Sales revenue
2,833,580
Sales discount
73,250
Sales returns and allowances
Cost of goods sokd
Wages Expense
Rent Expense
Depreciation Expense - Computer and Equipment
Depreciation Expense -Delivery Truck
Store Supplies Expense
|Utilities Expense
Bad Debt Expense
Interest Expense
Total
52,100
495,000
325,125
680,000
65,000
220,000
105,555
7,058,580
7,058,580
The following additional information is available at July 31, 2021:
(i)
Insurance of $510,000 was paid on April 1, 2021, for six (6) -months to February
2022.
(ii)
The computer and equipment were purchased on December 1, 2020 and have an
estimated useful life of 10 years. This asset is depreciated on the double-declining
depreciation method down to a residual value of $100,000.
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