The trial balance of Dealer”s Choice Wholesale Company contained the accounts shown at December 31, the end of the company”s fiscal year.
|
DEALER”S CHOICE WHOLESALE COMPANY |
||
|
Debit |
Credit |
|
|
Cash |
$ 31,400 |
|
|
Accounts Receivable |
37,600 |
|
|
Inventory |
70,000 |
|
|
Land |
92,000 |
|
|
Buildings |
200,000 |
|
|
Accumulated Depreciation—Buildings |
$ 60,000 |
|
|
Equipment |
83,500 |
|
|
Accumulated Depreciation—Equipment |
40,500 |
|
|
Notes Payable |
54,700 |
|
|
Accounts Payable |
17,500 |
|
|
Common Stock |
160,000 |
|
|
Retained Earnings |
67,200 |
|
|
Dividends |
10000 |
|
|
Sales Revenue |
922100 |
|
|
Sales Discounts |
6,000 |
|
|
Cost of Goods Sold |
709,900 |
|
|
Salaries and Wages Expense |
51,300 |
|
|
Utilities Expense |
11,400 |
|
|
Maintenance and Repairs Expense |
8,900 |
|
|
Advertising Expense |
5,200 |
|
|
Insurance Expense |
4,800 |
|
|
$1,322,000 |
$1,322,000 |
|
Adjustment data:
1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.)
2. Interest of $4,500 is due and unpaid on notes payable at December 31.
3. Income tax due and unpaid at December 31 is $24,000.
Other data: $15,000 of the notes payable are payable next year.
Instructions
(a) Journalize the adjusting entries.
(b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.
(c) Prepare an adjusted trial balance.
(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2012.