Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial balance on December
Question:
Mackenzie Inc. uses a perpetual inventory system and has prepared the following adjusted trial balance on December 31, 2016:
Mackenzie Inc.
ADJUSTED TRIAL BALANCE
December 31, 2016
ACCOUNT TITLE | DEBIT | CREDIT | |
---|---|---|---|
1 | Cash | 2,500.00 | |
2 | Accounts Receivable | 3,100.00 | |
3 | Allowance for Doubtful Accounts | 250.00 | |
4 | Inventory | 6,400.00 | |
5 | Prepaid Insurance | 800.00 | |
6 | Land | 5,300.00 | |
7 | Buildings and Equipment | 34,300.00 | |
8 | Accumulated Depreciation | 16,200.00 | |
9 | Accounts Payable | 3,500.00 | |
10 | Salaries Payable | 500.00 | |
11 | Unearned Rent | 360.00 | |
12 | Income Taxes Payable | 2,550.00 | |
13 | Note Payable | 5,200.00 | |
14 | Interest Payable | 700.00 | |
15 | Common Stock | 9,700.00 | |
16 | Retained Earnings | 6,790.00 | |
17 | Dividends | 1,300.00 | |
18 | Income Summary | ||
19 | Sales Revenue | 33,140.00 | |
20 | Rent Revenue | 1,380.00 | |
21 | Cost of Goods Sold | 15,220.00 | |
22 | Selling Expenses | 4,800.00 | |
23 | Administrative Expenses | 3,300.00 | |
24 | Interest Expense | 700.00 | |
25 | Income Tax Expense | 2,550.00 | |
26 | Totals | 80,270.00 | 80,270.00 |
For classification purposes: | |
Note payable is due July 1, 2020 | |
Interest payable is due July 1, 2020 |
Required: | |
Prepare in proper form for 2016 the companies: | |
1. income statement | |
2. retained earnings statement | |
3. ending balance sheet | |
4. closing entries in its general journal |
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach