The following additional information is available at June 30, 2022: (i) (iv) (v) (vi) (vii) (viii) (ix) 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

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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1. Prepare the necessary adjusting journal entries on June 30, 2022. (narrations are not required)

2. Prepare the Adjusted Trial Balance at June 30, 2022.

3. Prepare the company's multiple-step income statement for the period ending June 30, 2022.

4. Prepare the company statement of owner's equity at June 30, 2022

5. Prepare the company's classified balance sheet at June 30, 2022.

The following additional information is available at June 30, 2022:
(i)
(ii)
(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

A/C Name
Gregg's Shipping Supplies Ltd- Jamaica Branch
Trial Balance as at June 30, 2022
Trial Balance
Cash
Accounts receivable
Allowance for bad debt
Merchandise Inventory
Store Supplies
Prepaid Insurance
Prepaid rent
Furniture and fixtures
Accumulated depreciation-Furniture and Fixtures
Motor Truck
Accumulated depreciation - Motor Truck
Accounts payable
Salary payable
Interest payable
Unearned Sales revenue
Long-term loan
Gregg's, Capital
Gregg's, Withdrawals
Sales revenue
Sales discount
Sales returns and allowances
Cost of goods sold
Salaries expense
Insurance Expense
Utilities Expense
Rent Expense
Depreciation Expense - Furniture & Fixtures
Depreciation Expense - Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck
Bad-Debt Expense
Interest Expense
DR
1,250,000
1,300,000
1,300,000
300,000
202,050
350,000
800,000
1,200,000
125,000
160,500
145,400
1,055,000
808,000
202,050
325,000
400,000
CR
100,000
79,000
50,000
28,000
205,000
2,500,000
3,500,000
3,403,000
58,000
9,923,000 9,923,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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