Chapter 5, Problem 5SP

To determine

Concept Introduction:

Journal Entries:

Preparing the journal entries is nothing but analyzing the transactions and identification of the accounts that are affected by it , finding it out its nature and at last determine whether it should be debited or credited .

Requirement 1:

To Prepare Prepare journal entries to record each of the January through March transactions

To determine

Concept Introduction:

General Ledger:

A ledger that generally contains all the accounts for the transactions recorded that is related to the company and helps in preparing the financial reports is known as General ledger.

Requirement 2:

To Post:

Posting of journal entries to the general ledger account.

To determine

Concept Introduction:

6-Column Worksheet:

10-column worksheet consists of balances of all the accounts prepared during an accounting period columns namely unadjusted trial balance, adjustments, and adjusted trial balance.

Requirement 3:

To Prepare:

Preparation of 6-column worksheet

To determine

Concept Introduction:

Single Step Income Statement:

An income statement that requires only one subtraction to arrive the net income is known as Single step income statement.

Multiple Step Income Statement:

An income statement that has to segregate all the revenue and expenses based on their nature like operating, non-operating revenue and expenses part to arrive the net income is known as multiple step income statement.

Requirement 4:

To Prepare:

Prepare Income statement using; (a) Single step format (b) Multiple step format.

To determine

Concept Introduction:

Statement of Owner's EquityThe statement of owner's equity shows the change of equity balance over a period of time.

Requirement 5

To Prepare:

Prepare a statement of owner's equity for the three months ended March 31, 2020

To determine

Concept Introduction:

Classified Balance sheetA balance sheet that classifies all the assets as current assets, long term investments , Plant , property and equipment etc...and also classifies the liabilities section as current liabilities , long term debt etc.. are known as classified balance sheet.

Requirement 6

To Prepare:

Prepare a classified balance sheet as of March 31, 2020.