Prepare the balance sheet for 2019 InstructionsOn November 30, 2019, Davis Company had the following account balances:CashAccounts ReceivableAllowance for Doubtful AccountsInventorySuppliesLandBuildings and EquipmentAccumulated DepreciationAccounts PayableCommon Stock, no par (2,000 shares)Retained Earnings (1/1/2019)DividendsSales RevenueCost of Goods SoldSalaries ExpenseAdvertising ExpenseOther ExpensesDateDebitTransactionBOLIGSI$3,0909,90017,7501,4009,00042,0002,00036,86012,5008,1004,500Credit$1004,20010,70020,00042,400During the month of December, Davis entered into the following transactions:69,700W InstructionsDateDec. 4714182021272831TransactionMade cash sales of $3,000; the cost of the inventory sold was $1,800.Purchased $2,400 of inventory on credit.Collected $900 of accounts receivable.Sold land for $7,800; the land originally cost $5,000.Made credit sales of $4,000; the cost of the inventory sold was $2,400.Returned $360 of defective inventory to supplier for credit to the Davis Company's account.Purchased $1,250 of inventory for cash.Paid $1,100 of accounts payable.Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note forthe balance.Required:1. Prepare general journal entries to record the preceding transactions.2. Post to general ledger T-accounts.3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:a. accrued salaries at year-end total $1,200;b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with noresidual value;c. supplies on hand at the end of the year total $630;d. bad debts expense for the year totals $830;e. the income tax rate is 30%; income taxes are payable in the first quarter of 20204. Prepare the company's financial statements for 2019.5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.

The accounting cycle has eight steps starting from identification of transactions, recording them in…

Answered: Prepare the balance sheet for 2019

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Prepare the balance sheet for 2019

Instructions
On November 30, 2019, Davis Company had the following account balances:
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Inventory
Supplies
Land
Buildings and Equipment
Accumulated Depreciation
Accounts Payable
Common Stock, no par (2,000 shares)
Retained Earnings (1/1/2019)
Dividends
Sales Revenue
Cost of Goods Sold
Salaries Expense
Advertising Expense
Other Expenses
Date
Debit
Transaction
BOLIGSI
$3,090
9,900
17,750
1,400
9,000
42,000
2,000
36,860
12,500
8,100
4,500
Credit
$100
4,200
10,700
20,000
42,400
During the month of December, Davis entered into the following transactions:
69,700
W

Instructions
Date
Dec. 4
7
14
18
20
21
27
28
31
Transaction
Made cash sales of $3,000; the cost of the inventory sold was $1,800.
Purchased $2,400 of inventory on credit.
Collected $900 of accounts receivable.
Sold land for $7,800; the land originally cost $5,000.
Made credit sales of $4,000; the cost of the inventory sold was $2,400.
Returned $360 of defective inventory to supplier for credit to the Davis Company's account.
Purchased $1,250 of inventory for cash.
Paid $1,100 of accounts payable.
Purchased land at a cost of $6,000; made a $1,000 down payment and signed a 12%, 2-year note for
the balance.
Required:
1. Prepare general journal entries to record the preceding transactions.
2. Post to general ledger T-accounts.
3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information:
a. accrued salaries at year-end total $1,200;
b. for simplicity, the building and equipment are being depreciated using the straight-line method over an estimated life of 20 years with no
residual value;
c. supplies on hand at the end of the year total $630;
d. bad debts expense for the year totals $830;
e. the income tax rate is 30%; income taxes are payable in the first quarter of 2020
4. Prepare the company's financial statements for 2019.
5. Prepare the 2019 (a) adjusting and (b) closing entries in the general journal.

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 9 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions