The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of the company’s financial year. The company is owned by John Columbus and is in the business of buying and farming supplies. Trial Balance as at December 31, 2018 Trial balance A/C Name Dr Cr Cash 1,000,000 Accounts receivable 450,000 Allowance for bad debt 15,000 Merchandise inventory 186,000 Store supplies 120,000 Prepaid insurance 450,000 Furniture and fixtures 1,000,000 Accumulated depreciation - furniture and fixtures 360,000 Computer equipment 600,000 Accumulated depreciation computer equipment Accounts payable 320,000 Wages payable Unearned sales revenue 150,000 Notes payable, long term 900,000 John Columbus, capital 2,200,000 John Columbus, withdrawals 95,000 Sales revenue 1,761,000 Sales discount 120,000 Sales returns and allowances 95,000 Cost of goods sold 650,000 Wages expense 450,000 Insurance expense 180,000 Depreciation expense - furniture and fixtures Depreciation expense - computer equipment Store supplies 40,000 Utilities expense 180,000 Bad debt expense Interest expense 90,000 Total 5,706,000 5,706,000 The following additional information is available at December 31, 2018: Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019. 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 $100,000. The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000. Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018. A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand. At December 31, $140,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000. REQUIRED: Prepare Columbus Ltd classified balance sheet at December 31, 2018. Prepare the closing entries Prepare the post-closing trial balance

The following trial balance was extracted from the books of Columbus Ltd at December 31, the end of the company’s financial year. The company is owned by John Columbus and is in the business of buying and farming supplies. Trial Balance as at December 31, 2018 Trial balance A/C Name Dr Cr Cash 1,000,000 Accounts receivable 450,000 Allowance for bad debt 15,000 Merchandise inventory 186,000 Store supplies 120,000 Prepaid insurance 450,000 Furniture and fixtures 1,000,000 Accumulated depreciation - furniture and fixtures 360,000 Computer equipment 600,000 Accumulated depreciation computer equipment Accounts payable 320,000 Wages payable Unearned sales revenue 150,000 Notes payable, long term 900,000 John Columbus, capital 2,200,000 John Columbus, withdrawals 95,000 Sales revenue 1,761,000 Sales discount 120,000 Sales returns and allowances 95,000 Cost of goods sold 650,000 Wages expense 450,000 Insurance expense 180,000 Depreciation expense - furniture and fixtures Depreciation expense - computer equipment Store supplies 40,000 Utilities expense 180,000 Bad debt expense Interest expense 90,000 Total 5,706,000 5,706,000 The following additional information is available at December 31, 2018: Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019. 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 $100,000. The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000. Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018. A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand. At December 31, $140,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000. REQUIRED: Prepare Columbus Ltd classified balance sheet at December 31, 2018. Prepare the closing entries Prepare the post-closing trial balance

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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he problem to be resolved:

Trial Balance as at December 31, 2018

Trial balance

A/C Name	Dr	Cr
Cash	1,000,000
Accounts receivable	450,000
Allowance for bad debt		15,000
Merchandise inventory	186,000
Store supplies	120,000
Prepaid insurance	450,000
Furniture and fixtures	1,000,000
Accumulated depreciation - furniture and fixtures		360,000
Computer equipment	600,000
Accumulated depreciation computer equipment
Accounts payable		320,000
Wages payable
Unearned sales revenue		150,000
Notes payable, long term		900,000
John Columbus, capital		2,200,000
John Columbus, withdrawals	95,000
Sales revenue		1,761,000
Sales discount	120,000
Sales returns and allowances	95,000
Cost of goods sold	650,000
Wages expense	450,000
Insurance expense	180,000
Depreciation expense - furniture and fixtures
Depreciation expense - computer equipment
Store supplies	40,000
Utilities expense	180,000
Bad debt expense
Interest expense	90,000
Total	5,706,000	5,706,000

The following additional information is available at December 31, 2018:

Insurance of $450,000 was paid on May 1, 2018 for the 10-months to February 2019.
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 $100,000.
The computer equipment was acquired on March 1, 2018 and is being depreciated over 10 years on the double-declining method of depreciation, down to a residue of $60,000.
Wages earned by employees NOT yet paid amounted to 15,000 at December 31, 2018.
A physical count of inventory at December 31, reveals $180,000 worth of inventory on hand.
At December 31, $140,000 of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule at December 31 indicated that the estimated uncollectible on account receivable should be $45,000.

REQUIRED:

Prepare Columbus Ltd classified balance sheet at December 31, 2018.
Prepare the closing entries
Prepare the post-closing trial balance

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