Gregg’s Shipping Supplies Ltd- Barbados Branch Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash 950,000 Accounts Receivable 700,000 Allowance for bad debt 45,000 Merchandise Inventory 1,200,000 Store Supplies 180,000 Prepaid Insurance 132,000 Prepaid rent 248,500 Furnitures and fixtures 800,000 Accumulated depreciation - Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 45,000 Salary payable Interest payable 33,000 Unearned Sales revenue 455,000 Long term loan 900,000 Gregg's Capital 1,700,000 Gregg's Withdrawals 105,000 Sales Revenue 4,902,500 Sales discount 150,000 Sales returns and allowances 105,000 Cost of goods sold 988,000 Salaries expense 605,000 Insurance expense 148,500 Utilities expense 405,000 Rent expense 284,000 Depreciaton expense - Furniture and fixtures Depreciation expense - Motor truck Store supplies expense Gain on Disposal of old motor truck 41,500 Bad Debt Expense Interest Expense 8,201,000 8,201,000 The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $80,000. (ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on May 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $10,000 (vi) Salaries earned by employees not yet paid amounted to $108,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $24,000. (viii) On June 30, 2022, $85,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $70,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30 ,2023 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022.[Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022 d) Prepare the company’s statement of owner’s equity at June 30, 2022 e) Prepare the company’s classified balance sheet at June 30, 2022
Gregg’s Shipping Supplies Ltd- Barbados Branch
A/C Name | Trial Balance |
DR | CR | |
Cash | 950,000 | |
700,000 | ||
Allowance for bad debt | 45,000 | |
Merchandise Inventory | 1,200,000 | |
Store Supplies | 180,000 | |
Prepaid Insurance | 132,000 | |
Prepaid rent | 248,500 | |
Furnitures and fixtures | 800,000 | |
79,000 |
Motor Truck | 1,200,000 | |
Accumulated depreciation - Motor Truck | ||
Accounts payable | 45,000 | |
Salary payable | ||
Interest payable | 33,000 | |
Unearned Sales revenue | 455,000 | |
Long term loan | 900,000 | |
Gregg's Capital | 1,700,000 | |
Gregg's Withdrawals | 105,000 | |
Sales Revenue | 4,902,500 |
Sales discount | 150,000 | |
Sales returns and allowances | 105,000 | |
Cost of goods sold | 988,000 | |
Salaries expense | 605,000 | |
Insurance expense | 148,500 | |
Utilities expense | 405,000 | |
Rent expense | 284,000 | |
Depreciaton expense - Furniture and fixtures | ||
Depreciation expense - Motor truck | ||
Store supplies expense |
Gain on Disposal of old motor truck | 41,500 | |
Bad Debt Expense | ||
Interest Expense | ||
8,201,000 | 8,201,000 |
The following additional information is available at June 30, 2022:
(i) Store Supplies on hand at June 30, 2022 amounted to $80,000.
(ii) Insurance of $132,000 was paid on April 1, 2022, for 8-months to November 2022
(iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.
(iv) The furniture and fixtures have an estimated useful life of 10 years and is being
(v) The motor truck was acquired on May 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $10,000
(vi) Salaries earned by employees not yet paid amounted to $108,000 at June 30, 2022.
(vii) Accrued interest expense as of June 30, 2022, $24,000.
(viii) On June 30, 2022, $85,000 of the previously unearned sales revenue had been earned.
(ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for
(x) After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,100,000 worth of inventory on hand at June 30,2022
Other data:
(xi) The business is expected to make principal payments totalling $250,000 towards the
loan during the fiscal year to June 30 ,2023
Required:
a) Prepare the necessary
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company’s multiple-step income statement for the period ending June 30, 2022
d) Prepare the company’s statement of owner’s equity at June 30, 2022
e) Prepare the company’s classified
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Prepare the company’s statement of owner’s equity at June 30, 2022
Prepare the company’s classified