Prepare financial statements for Drake Company for the year. But first......Calculate and record the Cost of Goods Sold expense: The ending inventory balance currentlyshows a $279,000 balance before adjustments. After counting and pricing it using FIFO, only$33,000 remains in inventory. Reduce inventory (credit entry) to its proper balance and adjustthe COGS for the inventory that is gone. The income tax rate is 30%.LAccounts payableA Accounts receivableLA BuildingA CashE Common stockI Cost of Goods Sold expenseSORE DividendsLA EquipmentIncome tax expenseIncome tax payableInterest ExpenseInventoryLA LandLong Term DebtLOhio Sales tax payableORE Retained earnings- beginningSalesUtilities expenseWages and salaries expense? 246,000$14,400$196,200?$57,000$225,680$62,500total debits and credits$3,00033$279,000$53,431$1,001,211$250,000?$14,000$96,000$31,000$78,000$1,650$52,561$588,000$1,001,211

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Description: Prepare financial statements for Drake Company for the year. But first......Calculate and record the Cost of Goods Sold expense: The ending inventory balance currentlyshows a $279,000 balance before adjustments. After counting and pricing it using F

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Prepare financial statements for Drake Company for the year. But first..... Calculate and record the Cost of Goods Sold expense: The ending inventory balance currently shows a $279,000 balance before adjustments. After counting and pricing it using FIFO, only $33,000 remains in inventory. Reduce inventory (credit entry) to its proper balance and adjust the COGS for the inventory that is gone. The income tax rate is 30%. Accounts payable A Accounts receivable A Building A Cash E Common stock I Cost of Goods Sold expense RE Dividends A Equipment I Income tax expense I Income tax payable Interest Expense A Inventory A Land Long Term Debt LOhio Sales tax payable Re Retained earnings- beginning Sales 1 Utilities expense Wages and salaries expense $57,000 $225,680 $62,500 ? 246,000 total debits and credits $14,400 $196,200 $3,000 33,000 $279,000 $53,431 $1,001,211 $250,000 ? $14,000 $96,000 $31,000 $78,000 $1,650 $52,56 $588,00 $1,001,21

Prepare financial statements for Drake Company for the year. But first..... Calculate and record the Cost of Goods Sold expense: The ending inventory balance currently shows a $279,000 balance before adjustments. After counting and pricing it using FIFO, only $33,000 remains in inventory. Reduce inventory (credit entry) to its proper balance and adjust the COGS for the inventory that is gone. The income tax rate is 30%. Accounts payable A Accounts receivable A Building A Cash E Common stock I Cost of Goods Sold expense RE Dividends A Equipment I Income tax expense I Income tax payable Interest Expense A Inventory A Land Long Term Debt LOhio Sales tax payable Re Retained earnings- beginning Sales 1 Utilities expense Wages and salaries expense $57,000 $225,680 $62,500 ? 246,000 total debits and credits $14,400 $196,200 $3,000 33,000 $279,000 $53,431 $1,001,211 $250,000 ? $14,000 $96,000 $31,000 $78,000 $1,650 $52,56 $588,00 $1,001,21

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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