The adjusted trial balance and some additional information for Northern Electronics Limited appears below. NORTHERN ELECTRONICS Adjusted
Question:
The adjusted trial balance and some additional information for Northern Electronics Limited appears below. NORTHERN ELECTRONICS Adjusted Trial Balance December 31, 2019
Debit Credit Cash ........................................................................................... $ 23,000
Accounts receivable ............................................................................. 9,500
Merchandise inventory ......................................................................... 30,000
Equipment ............................................................................................ 18,000
Accumulated depreciation—equipment ............................................... $ 4,800
Accounts payable ................................................................................. 15,200
Common shares .................................................................................... 8,100
Retained earnings ................................................................................ 21,150
Dividends ............................................................................................. 1,600
Sales revenue ...................................................................................... 725,000
Sales Discounts ................................................................................... 7,500
Purchases ............................................................................................ 475,000
Purchase Returns and allowances ...................................................... 3,500
Freight in .............................................................................................. 10,100
Salaries and Benefits expense ............................................................ 177,600
Office supplies expense ....................................................................... 14,500
Depreciation expense .......................................................................... 3,000
Income Tax expense ............................................................................ 7,950
$777,750
Additional Information:
1. Northern uses a periodic inventory system. Inventory January 1, 2019 was $30,000.
2. The inventory count on December 31, 2019 was $40,000.
3. There were no Common Share transactions during the year.
4. Retained earnings December 31, 2018 were $21,150. Instructions: For the year ended December 31, 2019:
(a) Prepare a multi-step income statement;
(b) Prepare a statement of financial position;
(c) Prepare a statement of changes in equity (4 marks)
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver