DEF CorporationTrial BalanceDecember 31,2021Cash200,000Accounts Receivable100,000Allowance for Uncollectible Accounts10,000Merchandise Inventory, Jan.1150,000Store Supplies15,000Office Supplies10,000Prepaid Insurance30,000Land1,000,000Office Equipment150,000Accumulated Depreciation Office Equipment30,000Store Equipment250,000Accumulated Depreciation - Store EquipmentAccounts Payable50,00075,000Ordinary Share Capital, P20 par1,000,000Ordinary Share Premium100,000Dividends80,000Retained Earnings228,000Sales2,500,000Sales Discounts50,000Purchases1,400,000Purchases Returns and Allowances100,000Sales Salaries250,000Advertising Expense75,000Delivery Expense50,000Miscellaneous Selling Expenses20,000Office Salaries185,000Light and Power60,000Miscellaneous Administrative Expenses18,000Total4,093,0004,093,000 Problem 9-3 ( Financial Statements of a Corporation; Adjusting and Closing Entries)The trial balance of DEF Corp. is presented on the next page and the additional informationneeded to update the records of the company is presented below:Additional information:a. Merchandise inventory, Dec.31P 210,000b. Inventory of supplies as of Dec.31Store supplies5,000Office supplies4,000c. Accrued salaries as of Dec.31Store supplies8,000Office supplies4,000d. Depreciation on equipment10% per yeare. Expired insuranceP 18,000f. Income tax rate is 30%.g. Transactions with shareholders during the year are as follows:Issued 1,000 ordinary shares at P25 per share on January 6, 2021Declared and distributed dividends of P80,000 during the year(Trial Balance on next page)Instructions:1. Prepare a statement of financial position, a separate income statement, and a statementof changes in shareholders' equity.2. Prepare adjusting and closing entries.

We are given trial balance of DEF corporation for the period ending on Dec 31, 2021 based on which…

Answered: 1. Prepare a statement of financial…

1. Prepare a statement of financial position, a separate income statement, and a statement of changes in shareholders' equity.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 1CP

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