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The following additional information is available at June 30, 2022: (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. (xi) The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on March 31, 2022, and is being depreciated over 10 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 $48,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $45,000. On June 30, 2022, $99,000 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 $70,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30,2023

The following additional information is available at June 30, 2022: (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. (xi) The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on March 31, 2022, and is being depreciated over 10 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 $48,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $45,000. On June 30, 2022, $99,000 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 $70,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30,2023

FINANCIAL ACCOUNTING
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.

       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

 

           

The following additional information is available at June 30, 2022: (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. (xi) The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on March 31, 2022, and is being depreciated over 10 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 $48,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $45,000. On June 30, 2022, $99,000 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 $70,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30,2023
Transcribed Image Text:The following additional information is available at June 30, 2022: (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Store Supplies on hand at June 30, 2022 amounted to $98,400. Insurance of $115,500 was paid on May 1, 2022, for 7-months to November 2022 Rent was prepaid on April 1, 2022, for 5-months to August 2022. (xi) The furniture and fixtures have an estimated useful life of 5 years and is being depreciated on the straight-line method down to a residual value of $10,000. The motor truck was acquired on March 31, 2022, and is being depreciated over 10 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 $48,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $45,000. On June 30, 2022, $99,000 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 $70,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,100,000 worth of inventory on hand at June 30,2022 Other data: The business is expected to make principal payments totalling $250,000 towards the loan during the fiscal year to June 30,2023
A/C Name Gregg's Shipping Supplies Ltd- St Lucia 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 400,000 420,000 1,000,000 120,000 115,500 177,500 600,000 1,200,000 95,000 102,000 98,000 850,000 455,000 165,000 365,000 319,500 CR 33,000 118,000 33,000 45,000 185,000 750,000 1,700,000 3,592,000 26,500 6,482,500 6,482,500
Transcribed Image Text:A/C Name Gregg's Shipping Supplies Ltd- St Lucia 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 400,000 420,000 1,000,000 120,000 115,500 177,500 600,000 1,200,000 95,000 102,000 98,000 850,000 455,000 165,000 365,000 319,500 CR 33,000 118,000 33,000 45,000 185,000 750,000 1,700,000 3,592,000 26,500 6,482,500 6,482,500
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