Company's December 31, 2014 trial balance is as follows:
|
Amount
|
Debit
|
Credit
|
|
Cash
|
$43,500
|
|
|
Accounts Recivable
|
$53,500
|
|
|
Allowance For Doubtful Accounts
|
$1,500
|
|
|
Notes Receivable
|
$30,000
|
|
|
Merchandise Inventory
|
$55,000
|
|
|
Land
|
$20,000
|
|
|
Building
|
$150,000
|
|
|
Accumulated Depreciation, Building
|
|
$15,000
|
|
Equipment
|
$50,000
|
|
|
Accumulated Depreciation, Equipment
|
|
$21,000
|
|
Goodwill
|
$26,000
|
|
|
Accounts Payable
|
|
$25,000
|
|
Long Term Notes Payab;e
|
|
$75,000
|
|
Commin Stock, $10 par. 2,000 shares authorized &
outstanding
|
|
$20,000
|
|
Retained Earnings
|
|
$147,000
|
|
|
$700,000
|
Floppy is a small company and records adjusting entries & closing entries only at fiscal (calendar) year end. Correcting and adjusting entries have not been recorded.
Additional Information:
a. Notes Receivable is a 3-months, 6% note accepted on November 1, 2014.
b. Long Term Notes Payable is a 5-year, 5% note, that was signed on July 1, 2014. Interest is payable annually.
c. Building is depreciated at 3% per year. There is no salvage value.
d. Equipment is depreciated at 15% year. There is no salvage value.
e. Floppy discovered, on December 30th, that the inexperienced bookkeeper recorded in the general journal and general ledger that day's $1,500 cash sales as a debit to Accounts Receivable and a credit to Sales Revenue.
f. The year-end physical count for Merchandise Inventory reflected a value of $51,500. Any difference in value will not be considered theft or loss.
g. Salaries for the last half of December, payable in January, amount to $5,500.
h. Floppy estimates that of the Accounts Receivable 5% will not be collectable.
QUESTION:
a. Prepare in journal form, any required correcting entries.
b. Prepare in journal form, all end-of-the period adjusting entries.
c. Prepare a December adjusted trial balance.
d. Prepare a classified balance sheet for the year ended December 31, 2014
e. Prepare in journal form, the closing entries for the year ended December 31, 2014