The adjusted trial balance of King Cornelius Company follows: KING CORNELIUS COMPANY Adjusted Trial Balance December...
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The adjusted trial balance of King Cornelius Company follows: KING CORNELIUS COMPANY Adjusted Trial Balance December 31, 2014 Cash Accounts receivable - Inventory Supplies Prepaid rent Furniture Accumulated depreciation Accounts payable Salary payable Interest payable Unearned sales revenue Note payable, long-term Cornelius, capital Cornelius, drawing Sales revenue Interest revenue Sales discounts Sales returns and allowances Cost of goods sold Salary expense Rent expense Depreciation expense Utilities expense Supplies expense Interest expense Total $ 5,600 37,100 25,800 1,300 1,000 26,500 48,000 10,000 8,000 $ 23,800 6,300 2,000 600 2,400 35,000 22,200 244,000 2,000 $1,000 72,700 7,700 2,700 5,800 2,200 2,900 $138,300 $138,100 Requirements 1. Journalize the closing entries at December 31. Post to the Income summary account as an accuracy check on net income. Recall that the credit balance closed out of Income summary should equal net income as computed on the income statement. Also post to Cornelius, capital, whose balance should agree with the amount reported on the balance sheet. 2. Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in account form. Draw arrows linking the state- ments. Note: King Cornelius doesn't separate its operating expenses as either selling or general. 3. Compute the inventory turnover and days in inventory for 2014. Inventory at December 31, 2013, was $21,000. Turnover for 2013 was 3.0 times. Would you expect King Cornelius Company to be more profitable or less profitable in 2014 than in 2013? Why? The adjusted trial balance of King Cornelius Company follows: KING CORNELIUS COMPANY Adjusted Trial Balance December 31, 2014 Cash Accounts receivable - Inventory Supplies Prepaid rent Furniture Accumulated depreciation Accounts payable Salary payable Interest payable Unearned sales revenue Note payable, long-term Cornelius, capital Cornelius, drawing Sales revenue Interest revenue Sales discounts Sales returns and allowances Cost of goods sold Salary expense Rent expense Depreciation expense Utilities expense Supplies expense Interest expense Total $ 5,600 37,100 25,800 1,300 1,000 26,500 48,000 10,000 8,000 $ 23,800 6,300 2,000 600 2,400 35,000 22,200 244,000 2,000 $1,000 72,700 7,700 2,700 5,800 2,200 2,900 $138,300 $138,100 Requirements 1. Journalize the closing entries at December 31. Post to the Income summary account as an accuracy check on net income. Recall that the credit balance closed out of Income summary should equal net income as computed on the income statement. Also post to Cornelius, capital, whose balance should agree with the amount reported on the balance sheet. 2. Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in account form. Draw arrows linking the state- ments. Note: King Cornelius doesn't separate its operating expenses as either selling or general. 3. Compute the inventory turnover and days in inventory for 2014. Inventory at December 31, 2013, was $21,000. Turnover for 2013 was 3.0 times. Would you expect King Cornelius Company to be more profitable or less profitable in 2014 than in 2013? Why?
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1 Journalizing the closing entries at December 31 Income Summary Debit Sales Revenue 244000 Debit Interest Revenue 2000 Credit Cost of Goods Sold 1000 ... View the full answer
Related Book For
Interpreting and Analyzing Financial Statements
ISBN: 978-0132746243
6th edition
Authors: Karen P. Schoenebeck, Mark P. Holtzman
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