The trial balance of Peoples Choice Wholesale Company contained the following accounts shown at December 31, the
Question:
The trial balance of People’s Choice Wholesale Company contained the following accounts shown at December 31, the end of the company’s fiscal year
Adjustment data:
1.Depreciation is $16,400 on buildings and $14,350 on equipment. (Both are operating expenses.)
2.Interest of $9,225 is due and unpaid on notes payable at December 31.
3.Income tax due and unpaid at December 31 is $49,200. Other data: $30,750 of the notes payable are payable next year.
Instructions
(a) Journalize the adjusting entries.
(b) Create T-accounts for all accounts used in part (a). Enter the trial balance amounts into the T-accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2017.
College Accounting A Contemporary Approach
ISBN: 978-0073396958
2nd edition
Authors: David Haddock, John Price, Michael Farina