Prepare the necessary adjusting journal entries on June 30, 2022. Prepare the Adjusted Trial balance at June 30, 2022. Prepare the company’s multiple-step income statement for the period ending June 30, 2022 Prepare the company’s statement of owner’s equity at June 30, 2022 Prepare the company’s classified balance sheet at June 30, 2022 A/C NameGregg's Shipping Supplies Ltd- Jamaica BranchTrial Balance as at June 30, 2022Trial BalanceCashAccounts receivableAllowance for bad debtMerchandise InventoryStore SuppliesPrepaid InsurancePrepaid rentFurniture and fixturesAccumulated depreciation-Furniture and FixturesMotor TruckAccumulated depreciation - Motor TruckAccounts payableSalary payableInterest payableUnearned Sales revenueLong-term loanGregg's, CapitalGregg's, WithdrawalsSales revenueSales discountSales returns and allowancesCost of goods soldSalaries expenseInsurance ExpenseUtilities ExpenseRent ExpenseDepreciation Expense - Furniture & FixturesDepreciation Expense - Motor TruckStore Supplies ExpenseGain on Disposal of Old Motor TruckBad-Debt ExpenseInterest ExpenseDR1,250,0001,300,0001,300,000300,000202,050350,000800,0001,200,000125,000160,500145,4001,055,000808,000202,050325,000400,000CR100,00079,00050,00028,000205,0002,500,0003,500,0003,403,00058,0009,923,000 9,923,000 The following additional information is available at June 30, 2022:(i)(ii)(iii)(iv)(v)(vi)(vii)(viii)(ix)(x)Store Supplies on hand at June 30, 2022 amounted to $159,500.Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022Rent was prepaid on March 1, 2022, for 7-months to September 2022.(xi)The furniture and fixtures have an estimated useful life of 10 years and is beingdepreciated on the straight-line method down to a residual value of $10,000.The motor truck was acquired on November 1, 2021, and is being depreciatedover 5 years on the double-declining balance method of depreciation, down toa residue of $15,000Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022.Accrued interest expense as of June 30, 2022, $65,000.On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned.The aging of the Accounts Receivable schedule at June 30, 2022 indicated that theAllowance for Bad Debts should be $130,000.After making all other adjustments, a physical count of inventory was done, whichreveals that there was $1,295,500 worth of inventory on hand at June 30,2022Other data:The business is expected to make principal payments totalling $455,000 towards theloan during the fiscal year to June 30,2023

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The following additional information is available at June 30, 2022: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. (xi) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. On June 30, 2022, $145,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q