Beauchamp Theater Corporation’s trial balance at the end of its current fiscal year appears below.

1. Enter Beauchamp Theater Corporation’s trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information: (a) expired insurance, $17,400; (b) inventory of unused office supplies, $244; (c) inventory of unused cleaning supplies, $468; (d) estimated depreciation on the building, $14,000; (e) estimated depreciation on the theater furnishings, $36,000; (f) estimated depreciation on the office equipment, $3,160; (g) The company credits all gift books sold during the year to the Gift Books Liability account. A gift book is a booklet of ticket coupons that is purchased in advance as a gift. The recipient redeems the coupons at some point in the future. On June 30, it was estimated that $37,800 worth of the gift books had been redeemed; (h) accrued but unpaid usher wages at the end of the accounting period, $860; and (i) estimated federal income taxes, $20,000.
2. Prepare an income statement, a statement of retained earnings, and a balance sheet.
3. Prepare adjusting and closingentries.

  • CreatedSeptember 10, 2014
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