The following trial balance has been provided for Mitchell's Magazine Corporation. The results are for the...

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The following trial balance has been provided for Mitchell's Magazine Corporation. The results are for the month ending March 31, 2020. The company has recently experienced IT issues and some portions of the trial balance have been deleted. Use the balances which have been recovered and the additional information provided below to reconstruct the trial balance. Adjusted Cash Accounts Receivable Investments Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Wages Payable Utilities Payable Unearned Revenue Income Taxes Payable Interest Payable Bank Loan Retained Earnings Subscription Revenue Advertising Revenue Supplies Expense Wage Expense Utilities Expense Unadjusted Debit 42,000 150,150 100,000 125,000 330,550 382,500 50,000 800 Credit 150,000 8,200 830 100,000 352,200 275,000 Adjustments Debit Credit Debit 42,000 100,000 125,000 36,000 330,550 382,500 Credit 44,000 150,000 1,750 80,000 100,000 352,200 215,000 The following additional information is provided at March 31, 2020: 1) Prepaid rent expires on December 31, 2020 2) Printing equipment was purchased August 1, 2019 and has a useful life of 5 years. 3) Unbilled advertising revenue totaled $175,000 at 3/31/20. 4) Provided magazines worth $130,000 on prepaid subscriptions during the month. 5) Duplicate invoices were discovered on April 3rd showing the company had double billed a company for $8,450 for an advertisement in a March issue of the magazine. 6) The interest rate on the bank loan is 5%. 7) Received a March utility bill for $1,250 to be paid April 5th. 8) Wages of $7,400 are to be paid on April 2nd. Half of the wages were earned in March. 9) The income tax rate is 21%. Required: a. Post all adjusting journal entries necessary on March 31, 2020 to the trial balance. Create additional accounts as necessary. b. Complete the trial balance by filling in the blank account balances denoted by an *. This may require you to work backwards. c. Prepare a classified income statement at March 31, 2020. d. Prepare the closing entries and calculate the following ratios: 1. Current Ratio 2. Net Profit Margin 3. Total Asset Turnover The following trial balance has been provided for Mitchell's Magazine Corporation. The results are for the month ending March 31, 2020. The company has recently experienced IT issues and some portions of the trial balance have been deleted. Use the balances which have been recovered and the additional information provided below to reconstruct the trial balance. Adjusted Cash Accounts Receivable Investments Supplies Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Wages Payable Utilities Payable Unearned Revenue Income Taxes Payable Interest Payable Bank Loan Retained Earnings Subscription Revenue Advertising Revenue Supplies Expense Wage Expense Utilities Expense Unadjusted Debit 42,000 150,150 100,000 125,000 330,550 382,500 50,000 800 Credit 150,000 8,200 830 100,000 352,200 275,000 Adjustments Debit Credit Debit 42,000 100,000 125,000 36,000 330,550 382,500 Credit 44,000 150,000 1,750 80,000 100,000 352,200 215,000 The following additional information is provided at March 31, 2020: 1) Prepaid rent expires on December 31, 2020 2) Printing equipment was purchased August 1, 2019 and has a useful life of 5 years. 3) Unbilled advertising revenue totaled $175,000 at 3/31/20. 4) Provided magazines worth $130,000 on prepaid subscriptions during the month. 5) Duplicate invoices were discovered on April 3rd showing the company had double billed a company for $8,450 for an advertisement in a March issue of the magazine. 6) The interest rate on the bank loan is 5%. 7) Received a March utility bill for $1,250 to be paid April 5th. 8) Wages of $7,400 are to be paid on April 2nd. Half of the wages were earned in March. 9) The income tax rate is 21%. Required: a. Post all adjusting journal entries necessary on March 31, 2020 to the trial balance. Create additional accounts as necessary. b. Complete the trial balance by filling in the blank account balances denoted by an *. This may require you to work backwards. c. Prepare a classified income statement at March 31, 2020. d. Prepare the closing entries and calculate the following ratios: 1. Current Ratio 2. Net Profit Margin 3. Total Asset Turnover

Answer rating: 100% (QA)

Transaction Date Amount Debit Credit Purchased equipment giving a note payable for the purchase pric... View the full answer