Woods Company Adjusted Trial Balance for the year ended December 31st 2012 DETAILS DEBIT $ CREDIT $ Cash 45,000 Accounts Receivable 50,000 Inventory 96,000 Equipment 100,000 Accumulated depreciation-equipment 20,000 Accounts payable 56,000 D. Woods - Capital 201,000 D. Woods - Drawing 36,000 Sales revenue 455,000 Sales returns and allowances 30,000 Sales discounts 25,000 Cost of goods sold 260,000 Salary expense 52,000 Insurance expense 9,000 Utilities expense 19,000 Depreciation expense 10,000 Delivery expense 15,000 Interest revenue 28,000 Interest expense 13,000 Total 760,000 760,000 Required: Prepare the company’s closing entries Prepare a multiple-step income statement, statement of owner’s equity and balance sheet for the company. Prepare the post-closing trial balance
Woods Company
Adjusted
for the year ended December 31st 2012
|
DETAILS |
DEBIT $ |
CREDIT $ |
|
Cash |
45,000 |
|
|
|
50,000 |
|
|
Inventory |
96,000 |
|
|
Equipment |
100,000 |
|
|
|
20,000 |
|
|
Accounts payable |
56,000 |
|
|
D. Woods - Capital |
|
201,000 |
|
D. Woods - Drawing |
36,000 |
|
|
Sales revenue |
|
455,000 |
|
Sales returns and allowances |
30,000 |
|
|
Sales discounts |
25,000 |
|
|
Cost of goods sold |
260,000 |
|
|
Salary expense |
52,000 |
|
|
Insurance expense |
9,000 |
|
|
Utilities expense |
19,000 |
|
|
Depreciation expense |
10,000 |
|
|
Delivery expense |
15,000 |
|
|
Interest revenue |
|
28,000 |
|
Interest expense |
13,000 |
|
|
Total |
760,000 |
760,000 |
Required:
- Prepare the company’s closing entries
- Prepare a multiple-step income statement, statement of owner’s equity and
balance sheet for the company. - Prepare the post-closing trial balance
Financial Statements -
1. Income Statement
2. Balance Sheet
The first statement shows the income earned and loss incurred by the organization in the financial year. It summarizes the revenue earned during the accounting period and Expenses incurred during the accounting year. It also shows the net profit or loss made by the organization.
The second Statement shows the balance of assets liabilities and Equity as of the balance sheet date. Assets include Current Assets which are short-term in nature. Long Term Assets are long-term in nature. Liabilities are the obligation of the organization which need to be paid by the company. Equity includes the amount invested in the business.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 5 images
