Chapter 5, Problem 5.34AP

Journalizing adjusting entries, preparing adjusted trial balance, and preparing financial statements

The unadjusted trial balance for Travis Electronics Company at March 31, 2016, follows:

Requirements

1. Journalize the adjusting entries using the following data:

a. Interest revenue accrued, $450.

b. Salaries (Selling) accrued, $2,500.

c. Depreciation expense—Equipment (Administrative), $1,330.

d. Interest expense accrued, $1,100.

e. A physical count of inventory was completed. The ending Merchandise Inventory should have a balance of $44,600.

2. Prepare Travis Electronics’s adjusted trial balance as of March 31, 2016.

3. Prepare Travis Electronics’s multi-step income statement for year ended March 31, 2016.

4. Prepare Travis Electronics’s statement of retained earnings for year ended March 31, 2016.

5. Prepare Travis Electronics’s classified balance sheet in report form as of March 31, 2016.