Question: Practice Set #2 Having recorded, posted (to the General Ledger) and began the '12-31-22 Trial Balance' worksheet with the unadjusted balances, we are now going
Practice Set #2
Having recorded, posted (to the General Ledger) and began the '12-31-22 Trial Balance' worksheet with the unadjusted balances, we are now going to prepare the Adjusting Journal Entries so that we can prepare the four fundamental financial statements The payroll summary for the week ended Friday. December 31 contained the followind information (for simplication purposes, payroll tax expenses nave been Included in the and Administrative Salaries - $ 17,613 Sales Salaries and Commissions 3,666 velivery ana varenouse vaces L.llS Total Wages Paid $ 23,398 The bi-weekly pay period will end on January 7 2023. Interest accrued at December 31, 2022 is composed of the following...Use a 360 day veal l ala . Note Receivable From. Date of Note Receivable Face Value Interest Rate (Annual) Term of nou anteres To be Accrued Interest to be deeruel " 12131122 Coconino Contractors, Inc. 11/1/2022 45,000 10/0 Monul (90 Days) Bilder Construction Company 12/16/2022 S 45,200 12% 6 Months (180 Days) Beverly's Building Products 12/26/2022 $ 14,000 14% 6 Months (180 Days) c. No interest payments were made on the company's $15,000 8% note payable during 2022 a. A count of office supplies at year-end indicated remaining office supplies of $3,100 at December 31. Plant and equipment to be depreciated are composed of the following.. Asset cos Acquired esumaled Usage or Li Metnod Current Depn Current Yeal YearS Usage Building trucks and Lis 9/1/2014| $306,000 25 Years woo Straiant Line 47112015 9/1/2017 2o.00 | 60.000 Miles 33.000 | 60.000 Miles Lift #1 (Sold) 3/29/2015 10 Years 3.100 Miles Uriven 4,200 Miles Driven 500 Straight Line 6,000 $ 0.415 Fumiture & Fixtures | 1/1/2018 | 4,500 5,000 32.800 suw Straight Line fA physical inventory was conducied of the warenouse at December 3 1 and the total value o inventory counted was $492,929. E-hataresimated 4.59 otaccountstecevatle wile uneolletedin the coming yearined 1. ho entor auary and ebuay 202315 51,60 in advanee in 2022), The iotal value of A review of insurance policies indicated that the value of the unexpired portion of existing policies was $5,640 at year end. Please perform the following tasks: 1 - Prepare the unadjusted trial balance in the '12-31-22 Trial Balance' worksheet based on the General Ledger that you have received with this packet. 2 - Prepare the Adjusting Journal Entries at December 31, 2022 based on the information provided in a. through h. above and record them on the '12-31-22 Trial Balance' worksheet and post them to the General Ledger (10 Points). 3 - Post the adjusting entries to the General Ledger and extend that data to compute the Adjusted Trial Balance on the '12-31-22 Trial Balance' worksheet. 4 - From the Adjusted Trial Balance, prepare the four fundamental financial statements at December 31, 2022 (20 Points): a. Income Statement b. Statement of Retained Earnings c. Balance Sheet d. Statement of Cash Flows (a 12/31/21 Balance Sheet is provided to prepare the operating activities section using the indirect method) 5 - Prepare the Closing Journal Entries at December 31, 2022 and record them on the '12-31-22 Trial Balance' worksheet and post them to the General Ledger (8 Points). 6 - Prepare the Post-Closing Trial Balance at December 31, 2022 from the '12-31-22 Trial Balance' worksheet - your Retained Earnings balance should be the same as on your 12/31/22 Balance Sheet prepared in item 4c. above (2 Points).
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