Prepare the necessary closing entries at December 31, 2020. Use compound journal entries where necessary.
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Presented below is income statement information of the Millenium Corporation for the year ended December 31, 2020.
|
Sales revenue |
$620,000 |
|
Cost of goods sold |
$355,000 |
|
Salaries expense |
90,000 |
|
Insurance expense |
20,000 |
|
Dividend revenue |
3,000 |
|
|
18,000 |
|
Miscellaneous expense |
12,000 |
|
Income tax expense |
35,000 |
|
Loss on sale of investments |
8,000 |
|
Rent expense |
10,000 |
Required:
Prepare the necessary closing entries at December 31, 2020. Use compound
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- Presented below are selected account balances for Johnson Co. as of December 31, 2020. Inventory 12/31/20 $60,050 Cost of Goods Sold $229,610 Common Stock 74,370 Selling Expenses 15,940 Retained Earnings 45,010 Administrative Expenses 37,625 Dividends 17,920 Income Tax Expense 29,930 Sales Returns and Allowances 12,116 Sales Discounts 14,740 Sales Revenue 410,200 Prepare closing entries for Johnson Co. on December 31, 2020.Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals View transaction list Journal entry worksheetSelected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2024 2023 Sales revenue $ 5,300,000 $ 4,400,000 Cost of goods sold 3,040,000 2,180,000 Administrative expense 980,000 855,000 Selling expense 540,000 482,000 Interest revenue 168,000 158,000 Interest expense 236,000 236,000 Loss on sale of assets of discontinued component 120,000 — On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $120,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2024–9/30/2024 2023 Sales revenue $ 580,000 $ 680,000 Cost of goods sold (380,000) (428,000) Administrative expense (68,000) (58,000) Selling expense (38,000) (38,000) Operating income before taxes…
- Presented below is the trial balance of Grimjow Corporation at December 31, 2020. Debit Credit Cash $ 201,970 Sales $ 8,104,060 Debt Investments (trading) (at cost, $145,000) 157,060 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 303,970 Equity Investments (long-term) 281,970 Notes Payable (short-term) 94,060 Accounts Payable 459,060 Selling Expenses 2,004,060 Investment Revenue 66,860 Land 264,060 Buildings 1,044,970 Dividends Payable 140,970 Accrued Liabilities 100,060 Accounts Receivable 439,060 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 29,060 Administrative Expenses 903,860 Interest Expense 214,860 Inventory 601,970 Gain 83,860 Notes Payable (long-term) 904,970…These financial statement items are for Nazir Company at year-end, July 31, 2019. Salaries payable $ 1,040 Note payable (long-term) $900 Salaries expense 25,850 Cash 12,100 Utilities expense 11,300 Accounts receivable 4,890 Equipment 9,259 Accumulated depreciation 3,000 Accounts payable 2,050 Nazir, Drawing 2,000 Commission revenue 30,550 Depreciation expense 2,000 Rent revenue 4,250 Nazir, Capital (beginning 25,600 of the year) Instructions: (a) Prepare an income statement and an owner’s equity statement for the year. The owner did not make any new investments during the year. (b) Prepare a classified balance sheet at July 31. Income Statement Particulars Amount ($) Amount ($) Owner’s Equity Statement Particulars Amount ($) Amount ($) Balance Sheet Particulars Amount ($) Amount ($)The following information has been taken from Sacha's accounts. Income Statement for the year ending 31st December 2019.” “ £ Revenue 1,372,008 Cost of Sales (916,502) Gross Profit 455,506 Selling and distribution expenses (excluding depreciation) (110,000) Administration expenses (excluding depreciation) (86,000) Operating expenses (90,540) Depreciation (84,480) Operating Profit 84,486 Interest receivable 7,428 Interest payable (3,714) Profit for the year 88,200” “Statements of financial position as at 31st December 2018 and 31st December 2019. “ “2018 2019 £ £ £ £…
- Following are selected accounts for Best Buy, Inc., for the fiscal year ended February 2, 2019. (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). Best Buy, Inc. ($ millions)Amount Classification Sales $42,879 Answer B I Accumulated depreciation 6,690 Answer B I Depreciation expense 770 Answer B I Retained earnings 2,985 Answer B I Net income 1,464 Answer B I Property, plant & equipment, net 2,510 Answer B I Selling, general and admin expense 8,015 Answer B I Accounts receivable 1,015 AnswerB I Total liabilities 9,595 Answer B I Stockholders' equity 3,306 Answer B I (b) Using the data, compute total assets and total expenses. Total Assets Answer Total Expenses Answer answer complete and correct and in detail with all workThe current sections of Headlands Corp.'s balance sheets at December 31, 2021 and 2022, are presented here. Headlands Corp.'s net income for 2022 was $330,200. Depreciation expense was $54,600. Current assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Current liabilities Accrued expenses payable Accounts payable Total current liabilities 2022 $80,600 110,500 101,400 22,100 $314,600 $7,800 114,400 $122,200 2021 $ 115,700 89,700 80,600 24,700 $310,700 $20,800 93,600 $ 114,400 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $5,250,000 $4,350,000 2,170,000 3,030,000 970,000 845,000 530,000 472,000 167,000 157,000 234,000 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 234,000 116,000 1/1/2024-9/30/2024 $ 570,000 (375,000) (67,000) (37,000) $ 91,000 2023 $ 670,000 (422,000) (57,000) (37,000) $ 154,000 In addition to the…
- GALLAGHER CORPORATION Income Statement For the Year Ending December 31, 2021 Sales revenue 950,000 Less: Cost of Goods Sold 600,000 Gross Profit 350,000 Less Operating Expenses 250,000 100,000 Income from Operations Other revenues and expenses 15,000 (3,000) Gain on sale of investments Loss on sale of equipment 12,000 Income before taxes 112,000 Income taxes 45,000 Net Income $ 67,000 Additional Information 1. Equipment costing $10,000 was sold and was 60% depreciated. New equipment was also purchased during the year 2. Cash dividends were declared and paid. 3. Common stock was exchanged for Land. 4. Debt investments costing $35,000 were sold during the year. New debt investment were purchased during the year for $5,000. 5. Accounts receivable are shown net of the allowance for doubtful accounts, because there were no account write-offs during the year. 6. Operating expenses include: Depreciation Expense, $21,000, Amortization Expense, and Interest Expense, $3,300 Instructions: 1.…Presented below is the trial balance of Flounder Corporation at December 31, 2020. Cash Sales Debt Investments (trading) (at cost, $145,000) Cost of Goods Sold Debt Investments (long-term) Equity Investments (long-term) Notes Payable (short-term) Accounts Payable Selling Expenses Investment Revenue Land Buildings Dividends Payable Accrued Liabilities Accounts Receivable Accumulated Depreciation-Buildings Allowance for Doubtful Accounts Administrative Expenses Interest Expense Inventory Gain Notes Payable (long-term) Equipment Bonds Payable Accumulated Depreciation-Equipment Franchises Common Stock ($5 par) Treasury Stock Patents Retained Earnings Paid-in Capital in Excess of Par Totals Debit $ 199,490 156,530 4,800,000 301,490 279,490 2,003,530 263,530 1,042,490 438,530 903,610 214,610 599,490 603,530 160,000 194,530 195,000 $12,355,850 Credit $ 8,103,530 93,530 458,530 66,610 138,490 99,530 152,000 28,530 83,610 902,490 1,002,490 60,000 1,003,530 80,490 82,490 $12,355,850 Prepare a…15. Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): 2021 2020 Sales revenue $ 4,450,000 $ 3,550,000 Cost of goods sold 2,870,000 2,010,000 Administrative expense 810,000 685,000 Selling expense 370,000 312,000 Interest revenue 151,000 141,000 Interest expense 202,000 202,000 Loss on sale of assets of discontinued component 52,000 — On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $52,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 1/1/2021–9/30/2021 2020 Sales revenue $ 410,000 $ 510,000 Cost of goods sold (295,000 ) (326,000 ) Administrative expense (51,000 )…
