On Dec 31, 2020 (at the end of company's fiscal year) trial balance of Eternal Store...

   

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On Dec 31, 2020 (at the end of company's fiscal year) trial balance of Eternal Store appeared as follows: Eternal Store Trial Balance (Unadjusted) As of December 31, 2020 (all amount in $) Debit Credit Cash Account Receivable Prepaid Insurance Inventory Land Equipment Account Payable Notes Payable Share Capital - Ordinary Retained Earning Dividends Sales Revenue Sales Return and Allowance Cost of Goods Sold Salaries and Wages Expense Utilities Expense Freight Out Supplies Expense Rent Expense 260,000 110,000 180,000 250,000 380,000 100,000 40,000 20,000 460,000 240,000 60,000 70,000 60,000 360,000 2,590,000 110,000 500,000 640,000 70,000 1,270,000 2,590,000 Additional Data at the end of December: 1. Supplies on hand $34,400 2. Notes Payable was taken out on Jul 1, for 2 years. Interest rate 6% annually 3. Annual depreciation expense for equipment $20,000. Equipment purchase on Oct 1 Paid 2 years of office rent on Mar 1. 4. 5. Insurance paid on Jun 1, for 3 years coverage 6. Salaries and wages still unpaid $26,000 7. Actual Inventory on hand $230,000 8. During December, a collectible of account receivable was not recorded $28,000 Required: a. Prepare the adjusted trial balance! b. Prepare an income statement, retained earnings statement, and statement of financial position c. as of Dec 31, 2020 and interpret the result! Journalize the closing entries and prepare a post-closing trial balance! On Dec 31, 2020 (at the end of company's fiscal year) trial balance of Eternal Store appeared as follows: Eternal Store Trial Balance (Unadjusted) As of December 31, 2020 (all amount in $) Debit Credit Cash Account Receivable Prepaid Insurance Inventory Land Equipment Account Payable Notes Payable Share Capital - Ordinary Retained Earning Dividends Sales Revenue Sales Return and Allowance Cost of Goods Sold Salaries and Wages Expense Utilities Expense Freight Out Supplies Expense Rent Expense 260,000 110,000 180,000 250,000 380,000 100,000 40,000 20,000 460,000 240,000 60,000 70,000 60,000 360,000 2,590,000 110,000 500,000 640,000 70,000 1,270,000 2,590,000 Additional Data at the end of December: 1. Supplies on hand $34,400 2. Notes Payable was taken out on Jul 1, for 2 years. Interest rate 6% annually 3. Annual depreciation expense for equipment $20,000. Equipment purchase on Oct 1 Paid 2 years of office rent on Mar 1. 4. 5. Insurance paid on Jun 1, for 3 years coverage 6. Salaries and wages still unpaid $26,000 7. Actual Inventory on hand $230,000 8. During December, a collectible of account receivable was not recorded $28,000 Required: a. Prepare the adjusted trial balance! b. Prepare an income statement, retained earnings statement, and statement of financial position c. as of Dec 31, 2020 and interpret the result! Journalize the closing entries and prepare a post-closing trial balance!

Answer rating: 100% (QA)

Calculations for Adjustments no 2 Interest on notes payable for 6 months from July 1 to Dec 31 50000... View the full answer