Financial Statements Carolyn Company has prepared the following alphabeticaladjusted trial balance on December 31, 2019: Required:Prepare the following 2019 items in proper form for Carolyn:1. the income statement2. the retained earnings statement3. the ending balance sheet (Hint: The Common Stock, Additional Paid-inCapital, and Retained Earnings accounts are summed to determine the totalshareholders’ equity )4. the closing entries in the general journal DebitCreditAccounts PayableAccounts ReceivableAccumulated Depreciation: BuildingsAccumulated Depreciation: EquipmentAdditional Paid-in CapitalAdministrative ExpensesAllowance for Doubtful Accounts$ 6,400$ 5,70019,00011,00015,0006,500600BuildingsCommon Stock, $1 par (4,000 shares)CashCost of Goods SoldCurrent Income Taxes PayableDividends42,0004,0005,00027,4004,0352,40022,0004,035650EquipmentIncome Tax ExpenseInterest ExpenseInterest Payable (due July 1, 2020)InventorylandNotes Payable (due July 1, 2023)Prepaid InsuranceRent Revenue65010,8006,80010,0001,6002,80014,50054,900Retained Earnings, January 1, 2019Sales RevenueSelling ExpensesUnearned RentWages Payable9,7007001,000$144,585$144,585

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: Debit Credit Accounts Payable Accounts…

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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Financial Statements Carolyn Company has prepared the following alphabetical
adjusted trial balance on December 31, 2019:

Required:
Prepare the following 2019 items in proper form for Carolyn:
1. the income statement

2. the retained earnings statement
3. the ending balance sheet (Hint: The Common Stock, Additional Paid-in
Capital, and Retained Earnings accounts are summed to determine the total
shareholders’ equity )

4. the closing entries in the general journal

Debit
Credit
Accounts Payable
Accounts Receivable
Accumulated Depreciation: Buildings
Accumulated Depreciation: Equipment
Additional Paid-in Capital
Administrative Expenses
Allowance for Doubtful Accounts
$ 6,400
$ 5,700
19,000
11,000
15,000
6,500
600
Buildings
Common Stock, $1 par (4,000 shares)
Cash
Cost of Goods Sold
Current Income Taxes Payable
Dividends
42,000
4,000
5,000
27,400
4,035
2,400
22,000
4,035
650
Equipment
Income Tax Expense
Interest Expense
Interest Payable (due July 1, 2020)
Inventory
land
Notes Payable (due July 1, 2023)
Prepaid Insurance
Rent Revenue
650
10,800
6,800
10,000
1,600
2,800
14,500
54,900
Retained Earnings, January 1, 2019
Sales Revenue
Selling Expenses
Unearned Rent
Wages Payable
9,700
700
1,000
$144,585
$144,585

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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