Trial Balance as at December 31, 2018 Describe the system of accounting standards and principles to utilize these in the preparation and communication of relevant financial information. Apply the accrual method of accounting and the accounting cycle in preparation of financial statements Prepare a balance sheet and income statement for merchandising and service organizations Apply generally accepted principles when accounting for cash dividends and preparation of journal entries to record the issuance of stock. 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 Cash 1,000000 Accounts receivable 450000 Allowance for bad debt 15000 Merchandise inventory 186000 Store Supplies 120000 Furniture and fixtures 1000000 Accumulated depreciation Furniture and Fixtures 360000 Computer equipment 600000 accumulated depreciation computer equipment Accounts payable 320000 wages payable Unearned sales revenue 150000 Notes payable, Long term 900000 John Columbus, capital 2200000 John Columbus, withdrawals 95000 sales revenue 1761000 sales discount 120000 Sales returns and allowances 95000 Cost of goods sold 650000 wages expense 450000 Insurance expense 180000 depreciation expense - Furniture and fixtures Depreciation Expense - computer Equipment Store Supplies Expense 40000 Utilities expense 180000 Bad debt expense Interest expense 90000 Total 5706000 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 the necessary adjusting journal entries on December 31. [Narrations are not required] Prepare Columbus Ltd multiple-step income statement for the year ended December 31, 2018. Prepare Columbus Ltd statement of owner’s equity for the year ended December 31, 2018. Prepare Columbus Ltd classified balance sheet at December 31, 2018. Prepare the closing entries Prepare the post-closing trial balance
Describe the system of accounting standards and principles to utilize these in the preparation and communication of relevant financial information.
Apply the accrual method of accounting and the accounting cycle in preparation of financial statements
Prepare a
Apply generally accepted principles when accounting for cash dividends and preparation of
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
Cash 1,000000
Allowance for
Merchandise inventory 186000
Store Supplies 120000
Furniture and fixtures 1000000
Computer equipment 600000
accumulated depreciation computer equipment
Accounts payable 320000
wages payable
Unearned sales revenue 150000
Notes payable, Long term 900000
John Columbus, capital 2200000
John Columbus, withdrawals 95000
sales revenue 1761000
sales discount 120000
Sales returns and allowances 95000
Cost of goods sold 650000
wages expense 450000
Insurance expense 180000
depreciation expense - Furniture and fixtures
Depreciation Expense - computer Equipment
Store Supplies Expense 40000
Utilities expense 180000
Bad debt expense
Interest expense 90000
Total 5706000
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
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 the necessary
Prepare Columbus Ltd multiple-step income statement for the year ended December 31, 2018.
Prepare Columbus Ltd statement of owner’s equity for the year ended December 31, 2018.
Prepare Columbus Ltd classified balance sheet at December 31, 2018.
Prepare the closing entries
Prepare the post-closing trial balance
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