Chapter 5, Problem 5.41BP

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

The W1adjusted trial balance for Thomas Electronics Company follows:

Requirements

1. Journalize the adjusting entries using the following data:

a. Interest revenue accrued, $300.

b. Salaries (Selling) accrued, $2,400.

c. Depreciation Expense—Equipment (Administrative), $ 1,310.

d. Interest expense accrued, $1,300.

e. A physical count of inventory was completed. The ending Merchandise

Inventory should have a balance of $44,900.

2. Prepare Thomas Electronics’s adjusted trial balance as of October 31, 2016.

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

4. Prepare Thom as Electronics’s statement of retained earnings for year ended October 31, 2016.

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