The following additional information is available at June 30, 2022: (iv) 3 88 (A) Store Supplies on hand at June 30, 2022 amounted to $95,400. Insurance of $184,950 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. 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 February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries carned by employees not yet paid amounted to $195,000 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $50,550. (ix) (viii) On June 30, 2022, $66,000 of the previously unearned sales revenue had been camed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,115,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023 ACCT1002-Introduction to Financial Accounting Assignment #2 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022 [Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022 c) Prepare the company's multiple-step income statement for the period ending June 30, 2022 d) Prepare the company's statement of owner's equity at June 30, 2022 e) Prepare the company's classified balance sheet at June 30, 2022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The following additional information is available at June 30, 2022:
(i)
Store Supplies on hand at June 30, 2022 amounted to $95,400.
(ii)
(iii)
(iv)
Insurance of $184,950 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.
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.
(v)
The motor truck was acquired on February 1, 2022, and is being depreciated
over 5 years on the double-declining balance method of depreciation, down to
a residue of $15,000
(vi)
(vii)
(viii)
(ix)
(x)
Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022.
Accrued interest expense as of June 30, 2022, $50,550.
On June 30, 2022, $66,000 of the previously unearned sales revenue had been cared.
The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the
Allowance for Bad Debts should be $100,000.
After making all other adjustments, a physical count of inventory was done, which
reveals that there was $1,115,500 worth of inventory on hand at June 30,2022
Other data:
(xi)
The business is expected to make principal payments totalling $345,000 towards the
loan during the fiscal year to June 30,2023
ACCT1002-Introduction to Financial Accounting Assignment #2
Page 13
Required:
a) Prepare the necessary adjusting journal entries on June 30, 2022
[Narrations are not required]
b) Prepare the Adjusted Trial balance at June 30, 2022.
c) Prepare the company's multiple-step income statement for the period ending
June 30, 2022
d) Prepare the company's statement of owner's equity at June 30, 2022
e)
Prepare the company's classified balance sheet at June 30, 2022
Transcribed Image Text:The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $95,400. (ii) (iii) (iv) Insurance of $184,950 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. 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. (v) The motor truck was acquired on February 1, 2022, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) (vii) (viii) (ix) (x) Salaries earned by employees not yet paid amounted to $195,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $50,550. On June 30, 2022, $66,000 of the previously unearned sales revenue had been cared. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $100,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,115,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $345,000 towards the loan during the fiscal year to June 30,2023 ACCT1002-Introduction to Financial Accounting Assignment #2 Page 13 Required: a) Prepare the necessary adjusting journal entries on June 30, 2022 [Narrations are not required] b) Prepare the Adjusted Trial balance at June 30, 2022. c) Prepare the company's multiple-step income statement for the period ending June 30, 2022 d) Prepare the company's statement of owner's equity at June 30, 2022 e) Prepare the company's classified balance sheet at June 30, 2022
A/C Name
Plant Universe Ltd- Acacia Branch
Trial Balance as at June 30, 2022
Trial Balance
DR
CR
Cash
Accounts receivable
1,855,000
1,000,000
Allowance for bad debt
80,000
Merchandise Inventory
1,200,000
Store Supplies
205,000
Prepaid Insurance
184,950
Prepaid rent
287,035
Furniture and fixtures
600,000
Accumulated depreciation-Furniture and Fixtures
59,000
Motor Truck
1,200,000
Accumulated depreciation - Motor Truck
Accounts payable
50,000
Salary payable
Interest payable
28,000
Unearned Sales revenue
198,500
Long-term loan
2,185,375
Capital
Withdrawals
Sales revenue
2,900,000
125,000
4,105,000
Sales discount
160,500
Sales returns and allowances
145,400
Cost of goods sold
1,055,000
Salaries expense
808,000
Insurance Expense
Utilities Expense
184,950
325,000
328,040
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
58,000
9,663,875 9,663,875
Transcribed Image Text:A/C Name Plant Universe Ltd- Acacia Branch Trial Balance as at June 30, 2022 Trial Balance DR CR Cash Accounts receivable 1,855,000 1,000,000 Allowance for bad debt 80,000 Merchandise Inventory 1,200,000 Store Supplies 205,000 Prepaid Insurance 184,950 Prepaid rent 287,035 Furniture and fixtures 600,000 Accumulated depreciation-Furniture and Fixtures 59,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 50,000 Salary payable Interest payable 28,000 Unearned Sales revenue 198,500 Long-term loan 2,185,375 Capital Withdrawals Sales revenue 2,900,000 125,000 4,105,000 Sales discount 160,500 Sales returns and allowances 145,400 Cost of goods sold 1,055,000 Salaries expense 808,000 Insurance Expense Utilities Expense 184,950 325,000 328,040 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 58,000 9,663,875 9,663,875
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Events after the reporting period
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education