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     Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019: The office supplies consumed during the year is Br 8,000 The Unexpired part of insurance is only Br 26,000 iii. Br 30,000 is earned sales revenues from the unearned advance collection Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000 Depreciation Expenses allocated for the year amounts to be Br 15,000 There are accrued interest of Br 8,000 on the notes receivable Prepare the following Financial Statements after adjustments on Dec-31- 2019. Balance Sheet Income Statement Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings

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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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    

  1. Prepare the necessary adjusting entries for the following items as not yet recorded on Dec-31-2019:
  2. The office supplies consumed during the year is Br 8,000
  3. The Unexpired part of insurance is only Br 26,000

iii. Br 30,000 is earned sales revenues from the unearned advance collection

  1. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000
  2. Depreciation Expenses allocated for the year amounts to be Br 15,000
  3. There are accrued interest of Br 8,000 on the notes receivable
  4. Prepare the following Financial Statements after adjustments on Dec-31- 2019.
  5. Balance Sheet
  6. Income Statement
  7. Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings
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