The unadjusted trial balance of Global Enterprises for the year ended December 31, 2021, follows: Additional information:
Question:
The unadjusted trial balance of Global Enterprises for the year ended December 31, 2021, follows:
Additional information:
1. There was $700 of supplies on hand on December 31, 2021.
2. Depreciation expense for the year is $5,360 on the furniture, and $4,200 on the equipment.
3. Accrued interest expense at December 31, 2021, is $1,750.
4. Accrued interest revenue at December 31, 2021, is $720.
5. Of the unearned revenue, $1,600 is still unearned at December 31, 2021. On the sales that were earned, the cost of goods sold was $755.
6. A physical count of merchandise inventory indicates $35,275 on hand on December 31, 2021.
7. Global uses the perpetual inventory system and the earnings approach.
Instructions
a. Prepare the adjusting journal entries assuming they are prepared annually and update account balances.
b. Prepare a multiple-step income statement.
c. Prepare a single-step income statement.
d. Prepare the closing entries.
Compare the single-step and multiple-step income statements and comment on the usefulness of each. In your comments, refer to specific details related on Global Enterprises? income statements.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak