A D F. H. Retained Earnings Statement Debit J K Income Balance Sheet Debit 3 Trial Balance Adjustments Statement Debit Credit 4 Accounts Debit Credit Debit Credit Credit Credit 1,000 2,700 Cash 6 Accounts Receivable Allowance for Doubtful Accounts Note Receivable (due 5/1/20) Inventory 10 Land 11 Buildings and Equipment 12 Accumulated Depreciation 13 Accounts Payable 14 Notes Payable (due 4/1/22) 15 Common Stock (2,000 shares) 16 30 1,200 9,200 4,500 20,600 8,790 4,050 4,000 5,000 6,120 Retained Earnings (1/1/19) 17 Dividends 18 Sales Revenue 19 | Rent Revenue 20 600 25,140 550 9,050 2,750 Cost of Goods Sold 21 Salaries Expense 22 Delivery Expense 23 Heat and Light Expense Other Expenses 720 820 24 540 25 Totals 53,680 53,680 26 The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals $80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Devlin Company has prepared following partially completed worksheet for the year ended December 31, 2019:

1. Complete the worksheet. (Round to the nearest dollar.)
2. Prepar company's financial statements.
3. Prepare (a) adjusting and (b ) closing entries in the general journal.

A
D
F.
H.
Retained
Earnings
Statement
Debit
J
K
Income
Balance
Sheet
Debit
3
Trial Balance
Adjustments
Statement
Debit
Credit
4
Accounts
Debit
Credit
Debit
Credit
Credit
Credit
1,000
2,700
Cash
6
Accounts Receivable
Allowance for Doubtful Accounts
Note Receivable (due 5/1/20)
Inventory
10 Land
11 Buildings and Equipment
12 Accumulated Depreciation
13 Accounts Payable
14 Notes Payable (due 4/1/22)
15 Common Stock (2,000 shares)
16
30
1,200
9,200
4,500
20,600
8,790
4,050
4,000
5,000
6,120
Retained Earnings (1/1/19)
17 Dividends
18 Sales Revenue
19 | Rent Revenue
20
600
25,140
550
9,050
2,750
Cost of Goods Sold
21 Salaries Expense
22 Delivery Expense
23 Heat and Light Expense
Other Expenses
720
820
24
540
25
Totals
53,680
53,680
26
The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80
heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the
buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note
is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per
month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals
$80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the
first quarter of 2017.
Transcribed Image Text:A D F. H. Retained Earnings Statement Debit J K Income Balance Sheet Debit 3 Trial Balance Adjustments Statement Debit Credit 4 Accounts Debit Credit Debit Credit Credit Credit 1,000 2,700 Cash 6 Accounts Receivable Allowance for Doubtful Accounts Note Receivable (due 5/1/20) Inventory 10 Land 11 Buildings and Equipment 12 Accumulated Depreciation 13 Accounts Payable 14 Notes Payable (due 4/1/22) 15 Common Stock (2,000 shares) 16 30 1,200 9,200 4,500 20,600 8,790 4,050 4,000 5,000 6,120 Retained Earnings (1/1/19) 17 Dividends 18 Sales Revenue 19 | Rent Revenue 20 600 25,140 550 9,050 2,750 Cost of Goods Sold 21 Salaries Expense 22 Delivery Expense 23 Heat and Light Expense Other Expenses 720 820 24 540 25 Totals 53,680 53,680 26 The following additional information is available: (a) salaries accrued but unpaid total $250; (b) the $80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals $810 on the buildings and equipment; (d) interest accrued on the note payable totals $380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT & Daniel Specialty Company for $50 per month, and KT & Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals $80; (g) bad debts expense is $70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017.
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