Preparing financial statements and preparing closing entries
Alto Publishers Company’s selected accounts as of November 30, 2012, follow:
|
Selling expenses |
$ 18,100 |
Inventory |
$ 44,000 |
|
Furniture |
37,300 |
Cash |
36,100 |
|
Sales returns and allowances |
3,000 |
Note payable |
21,700 |
|
Salary payable |
1,400 |
Accumulated depreciation |
23,100 |
|
Alto, capital |
29,400 |
Cost of goods sold |
53,000 |
|
Sales revenue |
114,200 |
Sales discounts |
2,400 |
|
Accounts payable |
13,400 |
General expenses |
9,300 |
Requirements
1. Prepare the multi step income statement, statement of owner’s equity, and balance sheet for the first year of operations.
2. Prepare closing entries for the first year of operations.