Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.20E
Worksheet
• Appendix 2A
The December 31, 2018, unadjusted
| Account Title | Debits | Credits |
| Cash | 20,000 | |
| 35,000 | ||
| Prepaid rent | 5,000 | |
| Inventory | 50,000 | |
| Equipment | 100,000 | |
| 30,000 | ||
| Accounts payable | 25,000 | |
| Salaries and wages payable | –0– | |
| Common stock | 100,000 | |
| 29,000 | ||
| Sales revenue | 323,000 | |
| Cost of goods sold | 180,000 | |
| Salaries and wages expense | 71,000 | |
| Rent expense | 30,000 | |
| Depreciation expense | –0– | |
| Utility expense | 12,000 | |
| Advertising expense | 4,000 | |
| Totals | 507,000 | 507,000 |
The following year-end
a. Depreciation expense for the year on the equipment is $10,000.
b. Accrued salaries and wages payable at year-end should be $4,000.
Required:
1. Prepare and complete a worksheet similar to Illustration 2A–1.
2. Prepare an income statement for 2018 and a
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Chapter 2 Solutions
Intermediate Accounting
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