3. [20 Marks] The account balances for ABC Ltd. are given below in the table. The...

Transcribed Image Text:

3. [20 Marks] The account balances for ABC Ltd. are given below in the table. The balance are for a given financial year, but it is unadjusted. The data for adjustments are given below the table. Account Cash and cash equivalents Balances ($) 1,19,115.00 Account Balances ($) Accounts receivable 1,62,500.00 Prepaid insurance Accounts payable 38,250.00 1,18,180.00 Merchandise inventory 7,00,680.00 Notes payable 1,43,000.00 Store equipment 2,15,000.00 Selling expense 24,900.00 Accumulated depreciation, store equipment 37,300.00 Sales commission 1,05,750.00 Supplies inventory 15,475.00 Sales revenues 7,16,935.00 Miscellaneous general expenses 31,000.00 Allowance for uncollectible account 3,500.00 Sales discounts 6,220.00 Bad debt expense 3,500.00 Interest expense 9,300.00 Common stock Tax expense 9,600.00 Retained earnings 3,00,000.00 1,22,375.00 Adjustments data: a. Cost of merchandise sold, $302,990. b. Depreciation on store equipment, $12,750. c. Supplies inventory ending balance, $5,210.1 d. Expired insurance, $4,660. e. Interest accrued on notes payable, $3,730. f. Sales salary eamned but not paid to employees, $3,575. g. Interest earned on savings accounts, but not recorded, $390, h. Some accounts receivables were written off, $2000. i. After the entry h, reversal of write-off was $800. Required: Prepare the adjusted trial balance for ABC Ltd. Show only the final closing balances. If required, you can create new accounts. No need to write journal entries or individual ledger accounts. 3. [20 Marks] The account balances for ABC Ltd. are given below in the table. The balance are for a given financial year, but it is unadjusted. The data for adjustments are given below the table. Account Cash and cash equivalents Balances ($) 1,19,115.00 Account Balances ($) Accounts receivable 1,62,500.00 Prepaid insurance Accounts payable 38,250.00 1,18,180.00 Merchandise inventory 7,00,680.00 Notes payable 1,43,000.00 Store equipment 2,15,000.00 Selling expense 24,900.00 Accumulated depreciation, store equipment 37,300.00 Sales commission 1,05,750.00 Supplies inventory 15,475.00 Sales revenues 7,16,935.00 Miscellaneous general expenses 31,000.00 Allowance for uncollectible account 3,500.00 Sales discounts 6,220.00 Bad debt expense 3,500.00 Interest expense 9,300.00 Common stock Tax expense 9,600.00 Retained earnings 3,00,000.00 1,22,375.00 Adjustments data: a. Cost of merchandise sold, $302,990. b. Depreciation on store equipment, $12,750. c. Supplies inventory ending balance, $5,210.1 d. Expired insurance, $4,660. e. Interest accrued on notes payable, $3,730. f. Sales salary eamned but not paid to employees, $3,575. g. Interest earned on savings accounts, but not recorded, $390, h. Some accounts receivables were written off, $2000. i. After the entry h, reversal of write-off was $800. Required: Prepare the adjusted trial balance for ABC Ltd. Show only the final closing balances. If required, you can create new accounts. No need to write journal entries or individual ledger accounts.