The ledger of Rios Company contains the following balances: Retained Earnings $30,000; Dividends $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in the T-accounts, post the closing entries in the order presented in the problem and use the numbers as a reference

The ledger of Rios Company contains the following balances: Retained Earnings $30,000; Dividends $2,000; Service Revenue $50,000; Salaries and Wages Expense $27,000; and Supplies Expense $7,000. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in the T-accounts, post the closing entries in the order presented in the problem and use the numbers as a reference

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

See similar textbooks

Similar questions

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
The ledger of Martinez Company contains the following balances: Retained Earnings $31,00O, Dividends $3,000, Service Revenue $49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in T-accounts, and post the closing entries. Salaries and Wages Expense Supplies Expense Service Revenue Dividends Income Summary Retained Earnings >
The ledger of Martinez Company contains the following balances: Retained Earnings $31,000, Dividends $3,000, Service Revenue $49,000, Salaries and Wages Expense $27,500, and Supplies Expense $6,500. The closing entries are as follows: (1) Close revenue accounts. (2) Close expense accounts. (3) Close net income/(loss). (4) Close dividends. Enter the balances in T-accounts, and post the closing entries. Salaries and Wages Expense Bal. Supplies Expense Bal. 6500 6500 Service Revenue 49000 49000 Dividends Bal. 3000 3000 Income Summary 49000 Retained Earnings 31000 (4) 15000 Bal. 43000 > > >
1. Presented below is the adjusted trial balance of the LLL Corporation. Using this data, prepare the following statements: a. Income Statement (multiple step format); be sure to include the required earnings per share presentation. b. Statement of Retained Earnings Balance Sheet (classified format) C. LLL Corporation Adjusted Trial Balance 31-Dec-20 Debit Credit Cash 104,000 Accounts Receivable 294,000 Allowance for Doubtful Accounts 22,000 Notes Receivable (due 2/25/21) 2,500 Inventory, 12/31/17 Equipment Accumulated Depreciation - Equipment Building Accumulated Depreciation - Building 259,500 325,000 115,000 531,000 166,000 Land 125,000 Accounts Payable 136,000 Salaries & Wages Payable 6,000 Notes Payable - Due 5/31/21 125,000 395,000 Mortgage Payable - Due 12/31/2035 Common Stock, Par $.01 10,000 Additional Paid in Capital in Excess of Par 400,000 Retained Earnings, 12/31/20 179,000 Dividends Declared 15,000 Sales, Net 885,000 Cost of Goods Sold (COGS) 475,000 165,000 Selling…
The balance sheet debit column of the worksheet for Sandhill Company includes the following accounts: Accounts Receivable $ 11,800, Prepaid Insurance $ 3,600, Cash $ 4,000, Supplies $ 4,400, and Debt Investments (short-term) $ 7,100. Prepare the current assets section of the balance sheet, listing the accounts in proper sequence. (List Current Assets in order of liquidity.) SANDHILL COMPANY Partial Balance Sheet %24 %24 >
For the year ended December 31, a company had revenues of $201,000 and expenses of $120,600. $40,200 in dividends were paid during the year. Which of the following entries could not be a closing entry? Multiple Choice Debit Income Summary $120,600; credit Expenses $120,600. Debit Revenues $201,000; credit Income Summary $201,000. Debit Income Summary $80,400; credit Retained earnings $80,400. Debit Income Summary $201,000; credit Revenues $201,000. Debit Retained earnings $40,200; credit Dividends $40,200. MacBook Air
The balance sheet debit column of the worksheet for Ivanhoe Company includes the following accounts: Accounts Receivable $ 11,800, Prepaid Insurance $ 4,300, Cash $ 4,200, Supplies $ 4,900, and Debt Investments (short-term) $ 5,500. Prepare the current assets section of the balance sheet, listing the accounts in proper sequence. (List Current Assets in order of liquidity.) IVANHOE COMPANY Partial Balance Sheet 24 %24 >
The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what will be the balance in the Retained earnings account? $110,400 106,000 39,000 Net income Retained earnings Dividends Multiple Choice $110,400. S177400, $216,400 $248,800. S916.600
Sarasota Company's balance sheet shows: Common stock, $20 par Paid-in capital in excess of par Retained earnings Record the following transactions by the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (a) (b) (c) $3,100,000 1,100,000 760,000 (a) Bought 8,200 shares of its common stock at $30 a share. Sold 4,200 treasury shares at $31 a share. Sold 1,800 shares of treasury stock at $26 a share. No. Account Titles and Explanation Debit Credit
The general ledger of the Karlin Company, a consulting company, at January 1, 2018, contained the followingaccount balances:Account Title Debits CreditsCash 30,000Accounts receivable 15,000Equipment 20,000Accumulated depreciation 6,000Salaries payable 9,000Common stock 40,500Retained earnings 9,500Total 65,000 65,000 The following is a summary of the transactions for the year:a. Sales of services, $100,000, of which $30,000 was on credit.b. Collected on accounts receivable, $27,300.c. Issued shares of common stock in exchange for $10,000 in cash.d. Paid salaries, $50,000 (of which $9,000 was for salaries payable).e. Paid miscellaneous expenses, $24,000.f. Purchased equipment for $15,000 in cash.g. Paid $2,500 in cash dividends to shareholders.Required:1. Set up the necessary T-accounts and enter the beginning balances from the trial balance.
The following items are reported on a company's balance sheet: Line Item Description Amount Cash $228,100 Marketable securities 91,900 Accounts receivable 243,700 Inventory 182,200 Accounts payable 279,700 Determine the (a) current ratio and (b) quick ratio. Round answers to one decimal place. Line Item Description Amount a. Current ratio b. Quick ratio
Given below is the opening balance sheet and a list of transactions relating to the business of M/s Gupta & Co. You are required to prepare the closing balance sheet, the income statement and the cash flow statement after making the necessary adjustments. Balance sheet Amount Equity & Liabilities Capital 100,000 Retained profit 40,000 12% Loan 300,000 Creditors 100,000 540,000 Assets Stock 300,000 Fixed Assets 100,000 Debtors 60,000 Cash 80,000 540,000 Additional Information Issued Capital (10,000 shares of Rs.10 @ Rs.15 Issued 200 11% Debentures of 1000 each on April 1. Interest payable on 31st December Sold 60% Stock for Rs.400,000 for cash Outstanding salaries is Rs.50,000 Accumulated depreciation is Rs.50,000 Tax is to be charged at 30% Cash Dividend paid at 10% of opening capital.