Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their normal balances before adjustments: Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000 Notes Receivables 45,000 Retained Earnings 75,000 Office Supplies 12,000 Sales Revenues 640,000 Prepaid Insurance 72,000 Interest Income 12,000 Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000 Fixed Assets 120,000 Selling Expenses 21,000 Accum. Depr- Fixed assets 36,000 Salary and Wages Expense 105,000 Unearned Rent (Liability) 56,000 Rent Expense 15,000 Required a. Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019: i. The office supplies consumed during the year is Br 8,000 ii. The Unexpired part of insurance is only Br 26,000 iii. Br 30,000 is earned sales revenues from the unearned advance collection iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000 v. Depreciation Expenses allocated for the year amounts to be Br 15,000 vi. There are accrued interest of Br 8,000 on the notes receivable b. Prepare the following Financial Statements after adjustments on Dec-31- 2019. i. Balance Sheet ii. Income Statement
Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their
normal balances before adjustments:
Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000
Notes Receivables
45,000
75,000
Office Supplies
12,000
Sales Revenues
640,000
Prepaid Insurance
72,000
Interest Income
12,000
Inventory (Average Cost)
24,000
Cost of Goods Sold
320,000
Fixed Assets
120,000
Selling Expenses
21,000
Accum. Depr- Fixed assets
36,000
Salary and Wages Expense
105,000
Unearned Rent (Liability)
56,000
Rent Expense
15,000
Required
a. Prepare the necessary
i. The office supplies consumed during the year is Br 8,000
ii. The Unexpired part of insurance is only Br 26,000
iii. Br 30,000 is earned sales revenues from the unearned advance collection
iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000
v.
vi. There are accrued interest of Br 8,000 on the notes receivable
b. Prepare the following Financial Statements after adjustments on Dec-31- 2019.
i.
ii. Income Statement
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