The following additional information is available December 31, 2021: Store Supplies on hand on December 31, 2021, amounted to $1,500,000. Insurance of $4,200,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 Prepaid rent expired December 31, 2021, amounted to $2,750,000 The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. The Motor Car cost relates to two Sosa cars purchased for $1,800,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the car’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both car is $241,592 each. On September 1, 2021, the company sold one of the cars to ZM Company for $720,000 on credit. Round off answers to the nearest dollar. Salaries earned by employees and not yet paid amounted to $65,000 on Dec 31, 2021. Accrued interest expense as of December 31, 2021, $65,000. On Dec 31, 2021, $2,500,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule on Dec 31, 2021, indicated that the Allowance for Bad Debts should be $800,000 A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $7,850,000 worth of inventory on hand at this point. Other data: The business is expected to make principal payments totalling $1,450,000 towards the loan during the fiscal year to December 31, 2022. Required: Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required] Prepare the Adjusted Trial balance for the period ending December 31, 2021. Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical F -Town Division, i.e. A Multiple-step income statement & a Statement of owner’s equity for the year ended December 31, 2021 A Classified balance sheet, in report format, at December 31, 2021

The following additional information is available December 31, 2021: Store Supplies on hand on December 31, 2021, amounted to $1,500,000. Insurance of $4,200,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 Prepaid rent expired December 31, 2021, amounted to $2,750,000 The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. The Motor Car cost relates to two Sosa cars purchased for $1,800,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the car’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both car is $241,592 each. On September 1, 2021, the company sold one of the cars to ZM Company for $720,000 on credit. Round off answers to the nearest dollar. Salaries earned by employees and not yet paid amounted to $65,000 on Dec 31, 2021. Accrued interest expense as of December 31, 2021, $65,000. On Dec 31, 2021, $2,500,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule on Dec 31, 2021, indicated that the Allowance for Bad Debts should be $800,000 A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $7,850,000 worth of inventory on hand at this point. Other data: The business is expected to make principal payments totalling $1,450,000 towards the loan during the fiscal year to December 31, 2022. Required: Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required] Prepare the Adjusted Trial balance for the period ending December 31, 2021. Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical F -Town Division, i.e. A Multiple-step income statement & a Statement of owner’s equity for the year ended December 31, 2021 A Classified balance sheet, in report format, at December 31, 2021

Name: The following additional information is available December 31, 2021:St
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: The following additional information is available December 31, 2021:Store Supplies on hand on December 31, 2021, amounted to $1,500,000.Insurance of $4,200,000 was paid on January 1, 2021, for the 14-months to February 28, 2022 Prepaid rent expir

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

The following additional information is available December 31, 2021:

Store Supplies on hand on December 31, 2021, amounted to $1,500,000.
Insurance of $4,200,000 was paid on January 1, 2021, for the 14-months to February 28, 2022
Prepaid rent expired December 31, 2021, amounted to $2,750,000
The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000.
The Motor Car cost relates to two Sosa cars purchased for $1,800,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the car’s depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both car is $241,592 each. On September 1, 2021, the company sold one of the cars to ZM Company for $720,000 on credit. Round off answers to the nearest dollar.
Salaries earned by employees and not yet paid amounted to $65,000 on Dec 31, 2021.
Accrued interest expense as of December 31, 2021, $65,000.
On Dec 31, 2021, $2,500,000 of the previously unearned sales revenue had been earned.
The aging of the Accounts Receivable schedule on Dec 31, 2021, indicated that the Allowance for Bad Debts should be $800,000
A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $7,850,000 worth of inventory on hand at this point.

Other data:

The business is expected to make principal payments totalling $1,450,000 towards the loan during the fiscal year to December 31, 2022.

Required:

Prepare the necessary adjusting journal entries on Dec 31, 2021. [Narrations are not required]
Prepare the Adjusted Trial balance for the period ending December 31, 2021.
Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical F -Town Division, i.e.

A Multiple-step income statement & a Statement of owner’s equity for the year ended December 31, 2021

A Classified balance sheet, in report format, at December 31, 2021

A/C Name
Belvidere Pharmaceuticals F-Town Division
Trial Balance as of December 31, 2021
Cash
Accounts receivable
Allowance for bad debt
Other debtors
Merchandise Inventory
Store Supplies
Prepaid Insurance
Prepaid rent
Furniture & Equipment
Accumulated deprecation-Furniture and equipment
Motor Car
Accumulated depreciation- Motor Car
Accounts payable
Salary payable
Interest payable
Unearned Sales revenue
Note Payable, long term
Patty Patterson, Capital
Withdrawals
Sales revenue
Sales discount
Sales returns and allowances
Cost of goods sold
Salaries expense
Insurance Expense
Utilities Expense
Rent Expense
Depreciation Expense - Furniture and Equipment
Depreciation Expense - Motor Car
Store Supplies Expense
Gain/loss on Disposal of Fixed Asset
Bad-Debt Expense
Interest Expense
Trial Balance
DR
2,850,000
8,000,000
8,000,000
1,800,000
4,200,000
3,850,000
16,000,000
3,600,000
150,000
1,250,000
1,525,000
10,500,000
12,500,000
1,250,000
3,850,000
CR
710,100
6,320,000
2,656,282
1,650,050
2,800,000
8,000,000
24,500,000
32,688,568
79,325,000 79,325,000

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

Show journal, Trial Balance and Balance Sheet Entry for:

The business is expected to make principal payments totalling $1,450,000 towards the loan during the fiscal year to December 31, 2022.

Solution

by Bartleby Expert

SEE SOLUTION

Follow-up Question

Why is the rent in the adjusted trial balance 2750000?

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

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.