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The following additional information is available at June 30, 2022: Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 (i) (ii) (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) (A) 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 November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. (vii) (ix) (viii) On June 30, 2022, $145,000 of the previously uneamed sales revenue had been eamed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023

The following additional information is available at June 30, 2022: Store Supplies on hand at June 30, 2022 amounted to $159,500. Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 (i) (ii) (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) (A) 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 November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. (vii) (ix) (viii) On June 30, 2022, $145,000 of the previously uneamed sales revenue had been eamed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 25E: Koolman Construction Company began work on a contract in 2019. The contract price is 3,000,000, and...
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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, 2022Prepare the company’s classified balance sheet at June 30, 2022

 

Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash Accounts receivable 2,450,000 1,300,000 Allowance for bad debt 100,000 Merchandise Inventory 1,300,000 Store Supplies 300,000 Prepaid Insurance 202,050 Prepaid rent 350,000 Furniture and fixtures 800,000 Accumulated depreciation-Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 50,000 Salary payable Interest payable 28,000 Unearned Sales revenue Long-term loan Capital Withdrawals Sales revenue Sales discount Sales returns and a lowances Costofgoods sold Salaries expense 205,000 2,500,000 3,500,000 125,000 4,803,000 160,500 145,400 1,055,000 808,000 Insurance Expense Utites Expense 202,050 325,000 400,000 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 58,000 11,123,000 11,123,000
Transcribed Image Text:Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash Accounts receivable 2,450,000 1,300,000 Allowance for bad debt 100,000 Merchandise Inventory 1,300,000 Store Supplies 300,000 Prepaid Insurance 202,050 Prepaid rent 350,000 Furniture and fixtures 800,000 Accumulated depreciation-Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 50,000 Salary payable Interest payable 28,000 Unearned Sales revenue Long-term loan Capital Withdrawals Sales revenue Sales discount Sales returns and a lowances Costofgoods sold Salaries expense 205,000 2,500,000 3,500,000 125,000 4,803,000 160,500 145,400 1,055,000 808,000 Insurance Expense Utites Expense 202,050 325,000 400,000 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 58,000 11,123,000 11,123,000
The following additional information is available at June 30, 2022: (1) Store Supplies on hand at June 30, 2022 amounted to $159,500. (ii) Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) 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. (v) The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) (vii) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. (viii) (ix) On June 30, 2022, $145,000 of the previously uneamed sales revenue had been eamed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023
Transcribed Image Text:The following additional information is available at June 30, 2022: (1) Store Supplies on hand at June 30, 2022 amounted to $159,500. (ii) Insurance of $202,050 was paid on April 1, 2022, for 9-months to December 2022 (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) 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. (v) The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) (vii) Salaries earned by employees not yet paid amounted to $182,500 at June 30, 2022. Accrued interest expense as of June 30, 2022, $65,000. (viii) (ix) On June 30, 2022, $145,000 of the previously uneamed sales revenue had been eamed. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $130,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,295,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $455,000 towards the loan during the fiscal year to June 30,2023
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