*P5.13A (LO 7) AP The following is an alphabetical list of Bud's Bakery's adjusted account balances at the end of the company's fiscal year on November 30, 2021: Accounts payable $ 32,310 Merchandise inventory $ 34,360 Accounts receivable 13,770 Mortgage payable Prepaid insurance Property tax expense Purchases 106,000 Accumulated depreciation-building Accumulated depreciation-equipment 61,200 4,500 19,880 3,500 Building B. Hachey, capital B. Hachey, drawings 175,000 634,700 104,480 Purchase discounts 6,300 12,000 Purchase returns and allowances 13,315 Cash 8,500 Rent revenue 2,800 Depreciation expense Equipment Freight in Freight out Insurance expense 14,000 Salaries expense 122,000 57,000 Salaries payable 8,500 5,060 Sales 872,000 8,200 Sales discounts 8,250 9,000 Sales returns and allowances 9,845 Interest expense 5,300 Unearned revenue 3,000 Land 85,000 Utilities expense 19,800 Additional facts: 1. Bud's Bakery uses a periodic inventory system. 2. Of the mortgage payable, $8,500 is due on March 31, 2022. 3. A physical count determined that merchandise inventory on hand st November 30, 2021, was $37,350. 4. The owner made no capital contributions during the year. Instructions a. Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet for the November 30, 2021, year end. b. Prepare the closing journal entries. c. Post closing entries to the Merchandise Inventory and capital accounts. Check that the balances in
*P5.13A (LO 7) AP The following is an alphabetical list of Bud's Bakery's adjusted account balances at the end of the company's fiscal year on November 30, 2021: Accounts payable $ 32,310 Merchandise inventory $ 34,360 Accounts receivable 13,770 Mortgage payable Prepaid insurance Property tax expense Purchases 106,000 Accumulated depreciation-building Accumulated depreciation-equipment 61,200 4,500 19,880 3,500 Building B. Hachey, capital B. Hachey, drawings 175,000 634,700 104,480 Purchase discounts 6,300 12,000 Purchase returns and allowances 13,315 Cash 8,500 Rent revenue 2,800 Depreciation expense Equipment Freight in Freight out Insurance expense 14,000 Salaries expense 122,000 57,000 Salaries payable 8,500 5,060 Sales 872,000 8,200 Sales discounts 8,250 9,000 Sales returns and allowances 9,845 Interest expense 5,300 Unearned revenue 3,000 Land 85,000 Utilities expense 19,800 Additional facts: 1. Bud's Bakery uses a periodic inventory system. 2. Of the mortgage payable, $8,500 is due on March 31, 2022. 3. A physical count determined that merchandise inventory on hand st November 30, 2021, was $37,350. 4. The owner made no capital contributions during the year. Instructions a. Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet for the November 30, 2021, year end. b. Prepare the closing journal entries. c. Post closing entries to the Merchandise Inventory and capital accounts. Check that the balances in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
prepare the multi step income statement
Transcribed Image Text:Search
nd
*P5.13A (LO 7) AP The following is an alphabetical list of Bud's Bakery's adjusted account balances at
the end of the company's fiscal year on November 30, 2021:
and
Accounts payable
$ 32,310
Merchandise inventory
$ 34,360
Accounts receivable
13,770
Mortgage payable
Prepaid insurance
Property tax expense
106,000
Accumulated depreciation-building
Accumulated depreciation-equipment
Building
B. Hachey, capital
B. Hachey, drawings
61,200
4,500
19,880
3,500
175,000
Purchases
634,700
104,480
Purchase discounts
6,300
12,000
Purchase returns and allowances
13,315
Cash
8,500
Rent revenue
2,800
Depreciation expense
Equipment
Freight in
Freight out
Insurance expense
14,000
Salaries expense
122,000
57,000
Salaries payable
8,500
5,060
Sales
872,000
8,200
Sales discounts
8,250
9,000
Sales returns and allowances
9,845
Interest expense
5,300
Unearned revenue
3,000
Land
85,000
Utilities expense
19,800
Additional facts:
1. Bud's Bakery uses a periodic inventory system.
2. Of the mortgage payable, $8,500 is due on March 31, 2022.
3. A physical count determined that merchandise inventory on hand at November 30, 2021, was $37,350.
4. The owner made no capital contributions during the year.
Instructions
a. Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet
for the November 30, 2021, year end.
b. Prepare the closing journal entries.
c. Post closing entries to the Merchandise Inventory and capital accounts. Check that the balances in
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education