Problem - The Able Company is a merchandising enterprise that uses the perpetual inventory system. Account balances for the company as of March 31, 2017, the last day of the fiscal year, are as follows:
Cash $28000
Accounts Receivable 132500
Merchandise Inventory 195000
Prepaid Insurance 9700
Store Supplies 4250
Office Supplies 2100
Store Equipment 157000
ACCUMULATED DEPRECIATION-
Store Equipment 40300
Office Equipment 50000
ACCUMULATED DEPRECIATION-
Office Equipment 17200
Accounts Payable 66700
Salaries Payable 0
Unearned Rent 1200
NOTES PAYABLE:
Due within 12 months 20000
Due beyond 12 months 85000
Andy Able, Capital 224600
Andy Able, drawing 30000
Sales 915000
Sales, returns and allowances 11900
Sales discounts 7100
Cost of merchandise sold 576200
Sales salaries expense 76400
Advertising expense 25000
DEPRECIATION EXPENSE-STORE
Equipment 0
Store supplies expense 0
Miscellaneous Selling Expense 1600
Office Salaries Expense 34000
Rent Expense 16000
Insurance Expense 0
DEPRECAITION EXPENSE-OFFICE
Equipment 0
Office Supplies Expense 0
Miscellaneous Admin Expense 1650
Rent Income 0
Interest Expense 11600
DATA needed for year-end adjustments follow:
Merchandise inventory on hand March 31 189000
Insurance expired during the year 5000
Supplies on hand March 31
supplies 1300
Office supplies 750
Depreciation for the year:
Equipment 4500
Office Equipment 2800
Salaries payable as of March 31:
Sales Salaries 3850
Office Salaries 1150
Unearned Rent as of March 31 400
INSTRUCTIONS:
A. Prepare a work sheet for the year ended March 31, 2017.
B. Prepare a multiple step income statement for the year ended March 31, 2017.
C. Prepare a statement of owner's equity for the year ended March 31, 2017, assuming no additional investments by owner during the year.
D. Prepare a report form of balance sheet as of March 31, 2017, assuming that the current portion of notes payable is $20000.
E. Journalize adjusting entries.
F. Journalize closing entries.
G. Prepare a post-closing trial balance as of March 31, 2017.