Beauchamp Theater Corporation’s trial balance at the end of its

Beauchamp Theater Corporation’s trial balance at the end of its current fiscal year appears below.


1. Enter Beauchamp Theater Corporation’s trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information: (a) expired insurance, $17,400; (b) inventory of unused office supplies, $244; (c) inventory of unused cleaning supplies, $468; (d) estimated depreciation on the building, $14,000; (e) estimated depreciation on the theater furnishings, $36,000; (f) estimated depreciation on the office equipment, $3,160; (g) The company credits all gift books sold during the year to the Gift Books Liability account. A gift book is a booklet of ticket coupons that is purchased in advance as a gift. The recipient redeems the coupons at some point in the future. On June 30, it was estimated that $37,800 worth of the gift books had been redeemed; (h) accrued but unpaid usher wages at the end of the accounting period, $860; and (i) estimated federal income taxes, $20,000.

2. Prepare an income statement, a statement of retained earnings, and a balance sheet.

3. Prepare adjusting and closing entries.


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