The New England Trading Company, whose accounting year ends on December 31, had the following normal balances
Question:
The New England Trading Company, whose accounting year ends on December 31, had the following normal balances in its general ledger at December 31:
During the year, the accounting department prepared monthly statements but no adjusting entries were made in the journals and ledgers. Data for the year-end procedures are as follows:
1. Prepaid insurance, December 31 , was \(\$ 1,800\).
2. Depreciation expense on furniture and fixtures for the year was \(\$ 2,200\).
3. Depreciation expense on delivery equipment for the year was \(\$ 11,000\).
4. Salaries payable, December 31 ( \(\$ 1,900\) sales and \(\$ 1,200\) office), was \(\$ 3,100\).
5. Unused office supplies on December 31 were \(\$ 1,400\).
Required
a. Record the necessary adjusting entries at December 31 .
b. Prepare a multi-step income statement for the year. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses.
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