Question

The following accounts appear in the ledger of Sheldon Company on January 31, the end of this fiscal year.
Cash ......................... $ 16,400
Accounts Receivable .................... 15,100
Merchandise Inventory ................ 55,500
Store Supplies .............................. 1,603
Prepaid Insurance ........................... 3,080
Store Equipment ............................. 24,900
Accumulated Depreciation, Store Equipment ...... 3,860
Accounts Payable ............................ 14,400
M. E. Sheldon, Capital .......................... 126,484
M. E. Sheldon, Drawing ........................ $ 36,000
Sales ....................................................... 227,000
Sales Returns and Allowances .............. 2,000
Purchases ............................................... 172,000
Purchases Returns and Allowances .......... 2,375
Purchases Discounts ............................. 3,567
Freight In .............................................. 7,491
Wages Expense .......................................... 24,800
Advertising Expense ................................. 5,912
Rent Expense ............................................. 12,900
The data needed for adjustments on January 31 are as follows:
a– b. Merchandise inventory, January 31, $ 55,750.
c. Insurance expired for the year, $ 1,285.
d. Depreciation for the year, $ 5,482.
e. Accrued wages on January 31, $ 1,556.
f. Supplies used during the year $ 1,503.

Required
1. Prepare a work sheet for the fiscal year ended January 31.
2. Prepare an income statement.
3. Prepare a statement of owner’s equity. No additional investments were made during the year.
4. Prepare a balance sheet.
5. Journalize the adjusting entries.
6. Journalize the closing entries.
7. Journalize the reversing entry.



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  • CreatedOctober 21, 2014
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