Comprehensive (Appendix) Tina Tunxis is the owner of Valley Sales, a distributor of horticulture supplies. The following
Question:
Comprehensive (Appendix) Tina Tunxis is the owner of Valley Sales, a distributor of horticulture supplies. The following is the balance sheet of the company as of December 31, 2006:
![Comprehensive (Appendix) Tina Tunxis is the owner of Valley Sale](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images4/120-B-A-F-S(1597)-1.png)
Tina keeps very few records and has asked you to help her in the preparation of Valley Sales' 2007 financial statements. An
analysis of the 2007 cash transactions recorded in the company's checkbook indicates deposits and checks as follows:
![Comprehensive (Appendix) Tina Tunxis is the owner of Valley Sale](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images4/120-B-A-F-S(1597)-2.png)
3. Salaries payable at December 31, 2007, $1,800.
4. Equipment is depreciated by the straight-line method over a 10-year life. The equipment purchased in 2007 was acquired on July 1.
5. Interest payable at December 31, 2007, $140.
6. The company uses a periodic inventory system. Inventory at December 31, 2007, $17,400.
Required
1. Prepare a worksheet to summarize the transactions and adjustments of Valley Sales for 2007.
2. Prepare a 2007 income statement and a balance sheet as of December 31, 2007. (Contributed by Walter A.Parker)
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones