ANSWER ALL QUESTIONS
The accompanying trial balance relates to Little Richard's Distribution Servicing company.
Required:
1, Journalize the adjusting and closing entries at December 31, 2000
2.Perform the closing entries.
3. Prepare the company's multi-step income statement, statement of owner's equity and balance sheet in account format
Little Richard Services Company
Trial Balance
12/31/2000
| cash |
$5,670 |
|
| Accounts receivable |
37,100 |
|
| Inventory |
60,500 |
|
| Supplies |
3,930 |
|
| Prepaid rent |
6,000 |
|
| Furniture and Fixtures |
26,500 |
|
| Accumulated depreciation |
|
21,200 |
| Accounts payable |
|
46,340 |
| Salaries payable |
|
|
| Interest payable |
|
|
| Unearned sales revenue |
|
3,500 |
| Note payable, Long term |
|
35,000 |
| Little Richard, capital |
|
23,680 |
| Little Richard, Withdrawals |
48,000 |
|
| Sales revenue |
|
346,700 |
| Sales discount |
10,300 |
|
| Sales returns and allowances |
8,200 |
|
| Purchases |
175,900 |
|
| Purchases discount |
|
6,000 |
| Purchases returns and allowances |
|
7,430 |
| Freight in |
9,300 |
|
| Salaries expense |
82,750 |
|
| Rent expense |
7,00 |
|
| Depreciation expense |
|
|
| Utilities |
5,800 |
|
| Supplies expense |
|
|
| Interest expense |
2,900 |
|
| TOTAL |
5,489,850 |
$489,850 |
Additional data at December 31, 2000 are as follows:
(a) Supplies used during the year, $ 2,580
(b) Prepaid rent in force, $1,000
(c) Unearned sales revenue still not earned, $2,400.
The company expects to earn this amount during the next few months
(d) Depreciation. The furniture and fixtures estimated useful life Is 10 years and they are expected to be worthless when they are retired from service.
(e) Accrued salaries, $1,300
(f) Accrued interest expense, $600
(g) Inventory on hand, $65,800