Surian Motors Company prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2016:
Additional information:
(a) The equipment is being depreciated on a straight-line basis over a 10-year life, with no residual value;
(b) Salaries accrued but not recorded total $500;
(c) On January 1, 2016, the company had paid 3 years’ rent in advance at $100 per month;
(d) Bad debts are expected to be 1% of total sales;
(e) Interest of $400 has accrued on the note payable;
(f) The income tax rate is 40% on current income and will be paid in the first quarter of 2017.
1. Complete the worksheet.
2. Prepare financial statements for 2016.
3. Prepare closing entries in the general journal.

  • CreatedOctober 05, 2015
  • Files Included
Post your question