The following trial balance was taken from the books of Coyote Company as of December 31, 2019.
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Question:
The following trial balance was taken from the books of Coyote Company as of December 31, 2019.
account | debit | credit |
cash | 30,000 | |
accounts receivable | 40,000 | |
allowance for doubtful accounts | 1,000 | |
S-T notes receivable | 20,000 | |
Inventory, January 1, 2019 | 40,000 | |
furniture and equipment | 110,000 | |
accumulated depreciation of F&E | 20,000 | |
patents | 100,000 | |
accounts payable | 22,000 | |
bonds payable | 20,000 | |
L-T notes payable | 15.000 | |
common stock | 140,000 | |
retained earnings | 40,000 | |
sales | 550,000 | |
purchase | 278,000 | |
insurance expense | 20,000 | |
salary expense | 120,000 | |
rent expense | 50,000 | |
totals | 808,000 | 808,000 |
At the year end, the following items have not been recorded.
- Prepaid insurance expired during the year, $8,000.
- Estimated bad debts, 1.0% of sales.
- Inventory as of 12/31/2019 turned out to be $60,000.
- Five months’ rent of $50,000 was paid in advance on October 1, 2019 and charged to rent expense then.
- Furniture and equipment have an average useful life of 4 years and salvage value of $10,000. Coyote Company uses the straight-line method of depreciation.
- Utility bill of $1,600 for the month of December 2019 will be paid on its due date, January 10, 2020.
- Salaries earned but not yet paid by December 31, 2019, $7,000.
Instruction: prepare
- Any necessary adjusting entries at the end of 2019.
- Income Statement and statement of retained earnings, and balance sheet of the company for the year 2019.
- Any necessary closing entries at the end of 2019.
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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