A review of the ledger of Smallville Company at April 30, 2020, produces the following data pertaining
Question:
A review of the ledger of Smallville Company at April 30, 2020, produces the following data pertaining to the preparation of monthly adjusting entries.
1. Notes Payable $25700. This balance consists of a note for 6 months at an annual interest rate of 14%, dated January 1, 2020.
2. There are five workers in Smallville Company who are paid wages weekly. The five workers are paid $830 each for a 5-day work week (Monday to Friday). April 30 is a Tuesday and workers are paid on Fridays.
3. Annual depreciation is $12400 on equipment.
4.Physical check reveals inventory actually on hand on April 30, 2020 is $56771.4.
a) Journalize the adjusting entries at April 30, 2020.
b) Prepare an adjusted trial balance.
c) Using the balances from the adjusted trial balance, prepare a multi-step income statement and owner’s equity statement for the one month ended April 30. (Assume that the company falls under 20% tax bracket).
