The unadjusted trial balance of LeBrun Company at its year end, July 31, 2017, is as follows:

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The unadjusted trial balance of LeBrun Company at its year end, July 31, 2017, is as follows:

The unadjusted trial balance of LeBrun Company at its year

Adjustment information:
1. The July 31 bank statement reported debit memos for service charges of $50 and a $650 NSF (not sufficient funds) cheque that had been received from a customer for the purchase of merchandise in July.
2. Estimated uncollectible accounts receivable at July 31 are $3,850.
3. The note receivable bears interest of 8% and was issued on December 31, 2016. Interest is payable the first of each month.
4. A physical count of inventory determined that $39,200 of inventory was actually on hand.
5. Prepaid expenses of $5,500 expired in the year (use the account Operating Expenses).
6. Depreciation is calculated on the long-lived assets using the following methods and useful lives: Building: straight-line, 25 years, $15,000 residual value Equipment: double diminishing-balance, five years, $2,500 residual value Patent: straight-line, five years, no residual value
7. The 6% note payable was issued on August 1, 2009. Interest is paid monthly at the beginning of each month for the previous month's interest. Of the note principal, $1,680 is currently due.
8. Estimated warranty costs for July are $1,975 (use Operating Expenses).
Instructions
(a) Prepare the adjusting journal entries required at July 31. (Round your calculations to the nearest dollar.)
(b) Prepare an adjusted trial balance at July 31.
(c) Prepare a multiple-step income statement and statement of owner'sequity for the year and a balance sheet at July 31.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting Principles

ISBN: 978-1119048503

7th Canadian Edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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