The accounts and their balances in the ledger of Sunshine Sports Co. on December 31, 2006, are
Question:
The accounts and their balances in the ledger of Sunshine Sports Co. on December 31, 2006, are as follows:
The data needed for year-end adjustments on December 31 are as follows:
Instructions
1. Prepare a work sheet for the fiscal year ended December 31, listing all accounts in the order given.
2. Prepare a multiple-step income statement.
3. Prepare a statement of owner’s equity.
4. Prepare a report form of balance sheet, assuming that the current portion of the note payable is $10,000.
5. Journalize the adjusting entries.
6. Journalize the closingentries.
Transcribed Image Text:
Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Office Supplies Store Equipment Accumulated Depreciation- $ 7,100 500,000 200,000 Purchases Returns and Allowances 10,100 4,900 11,200 81,400 45,000 28,000 Sls Discounts 142,500 Purchases 9,700 Purchases Discounts 4,250 Transportation In 2,100 Sales Salaries Expense 132,000 Advertising Expense Depreciation Expense- Store Equipment Office Equipment Accumulated Depreciation- 40,300 50,000 Store Equipment Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense 1,600 44,000 26,000 Office Equipment Accounts Payable Salaries Payable Unearned Rent Note Payable (final payment, 2013) Sherri Vogel, Capital Sherri Vogel, Drawing Income Summary Sales Sales Returns and Allowances 17,200 56,700 -Insurance Expense 1,200 Depreciation Expense- Office Equipment Office Supplies Expense 100,000 159,600 40,000 Miscellaneous Administrative -Expense 960,000 Rent Revenue 1,650 11,900 Interest Expense 11,600 $215,000 4,800 Insurance expired during the year .^ _ . . Supplies on hand on December 31 . . . . . . . . . . . . Store supplies. Office supplies. 1,300 750 Depreciation for the year: 7,500 3,800 Salaries payable on December 31 Office salaries . Unearned rent on December 31 . 2,000 6,000 400
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Related Book For
Accounting
ISBN: 978-0324188004
21st Edition
Authors: Carl s. warren, James m. reeve, Philip e. fess
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