Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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The following additional information is available at June 30, 2022:
• Store Supplies on hand at June 30, 2022 amounted to $55,000.
• Insurance of $371,700 was paid on April 1, 2022, for 9-months to December 2022
• Rent was prepaid on March 1, 2022, for 7-months to September 2022.
• The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000.
• The motor truck was acquired on December 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000
• Salaries earned by employees not yet paid amounted to $308,000 at June 30, 2022.
• Accrued interest expense as of June 30, 2022, $143,500.
• On June 30, 2022, $68,122 of the previously unearned sales revenue had been earned.
• The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $189,000.
• After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,365,500 worth of inventory on hand at June 30,2022
Other data:
• The business is expected to make principal payments totalling $430,000 towards the loan during the fiscal year to June 30 ,2023.
Required:
Prepare the necessary adjusting journal entries on June 30, 2022.
Prepare the Adjusted Trial balance at June 30, 2022.
Prepare the company’s multiple-step income statement for the period ending June 30, 2022
Prepare the company’s statement of owner’s equity at June 30, 2022
Prepare the company’s classified balance sheet at June 30, 2022
Transcribed Image Text:Agricultural Farms Products Co. Ltd - Pork Branch
Trial Balance as at June 30, 2022
A/C Name
Cash
Accounts receivable
Trial Balance
DR
CR
2,225,050
1,890,000
Allowance for bad debt
Merchandise Inventory
Store Supplies
109,545
1,380,500
355,000
Prepaid Insurance
371,700
Prepaid rent
668,500
Furniture and fixtures
1,000,000
Accumulated depreciation-Furniture and Fixtures
99,000
Motor Truck
1,200,000
Accumulated depreciation-Motor Truck
Accounts payable
68,545
Salary payable
Interest payable
143,500
Uneamed Sales revenue
995,827
Long-term loan
Capital
Withdrawals
Sales revenue
Sales discount
Sales returns and allowances
Cost of goods sold
Salaries expense
2,950,000
4,800,000
145,500
4,901,900
150,500
140,400
2,055,000
1,008,000
Insurance Expense
371,700
445,000
764,000
Utilities Expense
Rent Expense
Depreciation Expense - Furniture & Fixtures
Depreciation Expense-Motor Truck
Store Supplies Expense
Gain on Disposal of Old Motor Truck
Bad-Debt Expense
Interest Expense
102,533
14,170,850 14,170,850
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