The following additional information is available at June 30, 2022: (i) Store Supplies on hand at June 30, 2022 amounted to $62,000. (ii) Insurance of $157,500 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) 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) Salaries earned by employees not yet paid amounted to $73,800 at June 30, 2022. (vii) Accrued interest expense as of June 30, 2022, $48,300. (viii) On June 30, 2022, $106,000 of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $86,550. (x) 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: (xi)The business is expected to make principal payments totalling $300,000 towards the loan during the fiscal year to June 30 ,2023 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
The following additional information is available at June 30, 2022:
(i) Store Supplies on hand at June 30, 2022 amounted to $62,000.
(ii) Insurance of $157,500 was paid on April 1, 2022, for 9-months to December 2022
(iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022.
(iv) The furniture and fixtures have an estimated useful life of 10 years and is being
(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) Salaries earned by employees not yet paid amounted to $73,800 at June 30, 2022.
(vii) Accrued interest expense as of June 30, 2022, $48,300.
(viii) On June 30, 2022, $106,000 of the previously unearned sales revenue had been earned.
(ix) The aging of the
Allowance for
(x) 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:
(xi)The business is expected to make principal payments totalling $300,000 towards the
loan during the fiscal year to June 30 ,2023
Required:
a) Prepare the necessary
[Narrations are not required]
b) Prepare the Adjusted
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
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