The following additional information is available at June 30, 2022: 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 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 earned. 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 Required: Prepare the necessary adjusting journal entries on June 30, 2022. [Narrations are not required] 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

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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Question

The following additional information is available at June 30, 2022:

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

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 earned.
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

Required:

Prepare the necessary adjusting journal entries on June 30, 2022.

[Narrations are not required]

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 Name
Gregg's Shipping Supplies Ltd- Trinidad 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
1,000,000
1,000,000
1,200,000
205,000
184,950
287,035
600,000
1,200,000
125,000
160,500
145,400
1,055,000
808,000
184,950
325,000
328,040
CR
80,000
59,000
50,000
28,000
198,500
2,185,375
2,900,000
3,250,000
58,000
8,808,875 8,808,875

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