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Prepare the balance sheet for 2019

Prepare the balance sheet for 2019

FINANCIAL ACCOUNTING
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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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
Transcribed Image Text: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.
Transcribed Image Text: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.
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