ABC Inc. s fiscal year end is December 3 1 and the company uses the periodic inventory
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Question:
ABC Inc.s fiscal year end is December and the company uses the periodic inventory method.
EXCEL # and
Transactions
On October ABC Inc. was incorporated to begin operating a new retail business.
On November four new owners transferred $ cash to the corporation for shares shares each owner
A building was purchased for $ on December for use beginning in It is expected to have a year life with
$ salvage.
Equipment costing $ was purchased December for use beginning in It is expected to last years with $
salvage value.
The firm arranged to borrow $ from the bank by signing a Note paying interest and effective December due
December
Required see also additional notes on page :
Write journal entries for each of the above transactions and write adjusting entries for the fiscal year end.
Prepare an adjusted trial balance
Prepare the basic financial statements Balance Sheet, Income Statement, Statement of Stockholders Equity, and Statement of
Cash Flows indirect method for the year.
Transactions
During $ in sales were made on account. Collections from customers were $ for the year.
During $ in inventory purchases were made on account. Payments to vendors were $ for the year.
During $ in salary cost was incurred from employees working. Salary paid was $ for the year.
On January months of rent was paid in advance for $ months were used during
On June new shares of common stock were issued in exchange for $ cash.
On September land to open a new store is purchased for $ cash.
On December the loan is repaid with interest.
Equipment and building were used during & depreciation recorded building used SL equipment DDB Double Declining
Balance, ie times the SL rate
Inventory is counted and $ remains unsold at December
The income tax rate is
Required see also additional notes on page :
Write journal entries for each of the above transactions and write adjusting entries for the fiscal year end.
Prepare an adjusted trial balance
Prepare the basic financial statements Balance Sheet, Income Statement, Statement of Stockholders Equity, and Statement of
Cash Flows indirect method for the year.
EXCEL #
Transactions
During a new gift card program was started and customers purchased $ in gift cards ie deferred revenue
During $ in sales were made on account. Collections of AR from customers were $ for the year.
During $ in inventory purchases were made on account. Payments to vendors were $ for the year.
During $ in salary cost was incurred from employees working. Salary paid was $ for the year.
On March income taxes accrued in were paid.
On March months of rent was paid in advance for $ months were used during
On October excess land is sold for $; the land was previously purchased in at a cost of $
On November a $ per share dividend is declared, record date November and payment date December
Equipment and building were used during & depreciation recorded building used SL equipment DDB
Inventory is counted and $ remains unsold at December
The income tax rate is
Required
Write journal entries for each of the above transactions and write adjusting entries for the fiscal year end.
Prepare an adjusted trial balance
Prepare the basic financial statements Balance Sheet, Income Statement, Statement of Stockholders Equity, and Statement of
Cash Flows indirect method for the year.
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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