Lizzie, Inc.
	Trial Balance
	As of December 20, 2023
			Debits		Credits
		Cash	$ 25,400		$ -
		Accounts receivable	13,000		-
		Supplies	10,790		-
		Inventory	21,000		-
		Equipment	44,000		-
		Accumulated depreciation	-		-
		Accounts payable	-		22,000
		Rent payable	-		-
		Loan payable	-		33,500
		Interest payable	-		-
		Capital stock	-		16,000
		Retained earnings	-		21,000
		Sales	-		60,590
		Sales - Discounts	-		-
		Cost of goods sold	4,000
		Rent expense	9,000		-
		Salaries expense	20,000		-
		Supplies expense	-		-
		Depreciation expense	-		-
		Interest expense	500		-
		Utilities expense	5,400		-
			$ 153,090		$ 153,090

1. The company received payment to settle a $10,000 Account receivable on December 21. The terms of the receivable were B/10, N 30 and the payment reflected that it was within the discount period.
2. On Dec 22, the company settled with cash a $15,000 Account payable with a vendor who sold the company inventory on December 18 (the balance is included in Accounts payable at Dec 20). The terms of the payable were B/10, N 30 and the payment reflected that it was within the discount period.
3. The company sold C of toy mice on December 22. The terms of the sale were B/10, N 30. The cost (inventory) of the mice was $2,000.
4. The company's president, Elizabeth, decided the company needed more capital, so she sold more stock on December 30th for A
5. The equipment was purchased near the beginning of the year. D of its cost expired this year.
6. Interest of E is owed on December 31, but has not been recorded.
7. Supplies on hand at year end were counted, and amount to $3,000.
8. December's rent of $1,600 is owed, but has not been recorded.

1. Set up a chart of accounts (5 points)
2. Set up a three column General Ledger and drop in the account balances from the provided trial balance (5 points)
3. Set up a General Journal and prepare the necessary entries through yearend. (50 points)
4. Post journal entries to your General Ledger set up in (B) and determine the adjusted balances of the accounts. and create an adjusted trial balance (5 points)
5. Prepare the multi-step income statement, statement of retained earnings and classified balance sheet. Use proper headings! (30 points)
6. Calculate the current ratio and gross profit percentage and explain what they mean with regards to this company (5 points)

A- $18000

B-3

C- 410000

D- 450

E- 400

Answer rating: 100% (QA)

Chart of Accounts 1 Cash 2 Accounts Receivable 3 Supplies 4 Inventory 5 Equipment 6 Accumulated Depreciation 7 Accounts Payable 8 Rent Payable 9 Loan Payable 10 Interest Payable 11 Capital Stock 12 Re... View the full answer