P5.3A (LO 4, 5) Financial Statement Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2020, the following accounts appeared in two of its trial balances. Prepare financial statements and ndjusting and closing entries. Unadjusted $ 25,200 30,500 34,000 Adjusted S 25,200 30,500 Unadjusted $ 37,000 Adjusted Accounts Payable Accounts Receivable Accumulated Depr.-Equip. $ 37,000 101,700 Notes Payable Owner's Capital 101,700 45,000 Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Salaries and Wages Expense Sales Revenue 10,000 10,000 3,500 2,500 2,500 10,500 Cash Cost of Goods Sold 26,000 26,000 518,000 518,000 6,500 146,000 Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue 6,500 146,000 15,000 96,000 15.000 11,000 7,000 6,400 96,000 720,000 720,000 Sales Commissions Expense Sales Commissions Payable 6,400 6,500 11,000 2,000 2,000 4,500 Inventory 32,000 32,000 Sales Returns and Allowances 8,000 8,000 Utilities Expense 8,500 8,500 Instructions a. Net income $32,100 a. Prepare a multiple-step income statement, an owner's equity statement, and a classified balance sheet. Notes payable are due in 2023. OIwner's canital S123 S00
P5.3A (LO 4, 5) Financial Statement Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2020, the following accounts appeared in two of its trial balances. Prepare financial statements and ndjusting and closing entries. Unadjusted $ 25,200 30,500 34,000 Adjusted S 25,200 30,500 Unadjusted $ 37,000 Adjusted Accounts Payable Accounts Receivable Accumulated Depr.-Equip. $ 37,000 101,700 Notes Payable Owner's Capital 101,700 45,000 Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Rent Expense Salaries and Wages Expense Sales Revenue 10,000 10,000 3,500 2,500 2,500 10,500 Cash Cost of Goods Sold 26,000 26,000 518,000 518,000 6,500 146,000 Freight-Out Equipment Depreciation Expense Insurance Expense Interest Expense Interest Revenue 6,500 146,000 15,000 96,000 15.000 11,000 7,000 6,400 96,000 720,000 720,000 Sales Commissions Expense Sales Commissions Payable 6,400 6,500 11,000 2,000 2,000 4,500 Inventory 32,000 32,000 Sales Returns and Allowances 8,000 8,000 Utilities Expense 8,500 8,500 Instructions a. Net income $32,100 a. Prepare a multiple-step income statement, an owner's equity statement, and a classified balance sheet. Notes payable are due in 2023. OIwner's canital S123 S00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:P5.3A (LO 4, 5) Financial Statement Big Box Store is located in midtown Madison. During the
past several years, net income has been declining because of suburban shopping centers. At the end of
the company's fiscal year on November 30, 2020, the following accounts appeared in two of its trial
balances.
Prepare financial statements and
adjusting and ctosing entries.
Unadjusted
Adjusted
Unadjusted
Adjusted
$ 25,200
30,500
34,000
S 25,200
30,500
45,000
$ 37,000
101,700
10,000
10,500
$ 37,000
Accounts Payable
Accounts Receivable
Notes Payable
Owner's Capital
Owner's Drawings
Prepaid Insurance
Property Tax Expense
101,700
Accumulated Depr.-Equip.
Cash
10,000
26,000
518,000
6,500
26,000
518,000
3,500
2,500
2,500
Cost of Goods Sold
Freight-Out
Equipment
Depreciation Expense
Insurance Expense
Interest Expense
Interest Revenue
6,500
Property Taxes Payable
Rent Expense
Salaries and Wages Expense
Sales Revenue
146,000
146.000
11,000
7,000
15,000
15.000
96,000
720,000
6,500
96,000
720,000
6,400
2,000
32,000
6,400
2,000
Sales Commissions Expense
Sales Commissions Payable
Sales Returns and Allowances
11,000
4,500
Inventory
32,000
8,000
8,000
Utilities Expense
8,500
8,500
Instructions
a. Net income $32,100
Owner's capital $123,800
Total assets $193,000
a. Prepare a multiple-step income statement, an owner's equity statement, and a classified balance
sheet. Notes payable are due in 2023.
b. Journalize the adjusting entries that were made.
c. Journalize the closing entries that are necessary.
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