Problem 1: (15 points) The Hightower Company has the following adjusted balances
ID: 2335801 • Letter: P
Question
Problem 1: (15 points) The Hightower Company has the following adjusted balances as of December 31, 2018. Prepare, in Excel, an adjusted trial balance in good form Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Land Office Equipment Accumulated Depreciation Office Equipment Buildings Accumulated Depreciation - Buildings Copyrights Accounts Payable Salaries Payable Interest Payable Notes Payable Bonds Payable Common Stock Retained Earnings deficit Sales Cost of Goods Sold Advertising Expense Utilities Expense Salaries Expense Insurance Expense Bad Debt Expense Depreciation Expense Gain on Sale of Land Interest Revenue Interest Expense 34,900 63,363 4,100 187,790 6,000 125,000 245,800 35,000 192,600 50,000 41,500 78,500 15,900 6,200 288,648 200,000 160,000 (40,524) 215,789 62,300 15,000 8,000 12,800 8,540 4,100 9,100 5,600 2,250 4,670Explanation / Answer
Hightower company
Trial Balance
As on December 31, 2018
Particulars
Debit
Credit
Cash
34,900
Accounts receivable
63,363
Allowance for doubtful debts
4,100
Merchandise Inventory
187,790
Prepaid Insurance
6,000
Land
125,000
Office equipment
245,800
Accumulated depreciation-office equipment
35,000
Buildings
192,600
Accumulated depreciation- Buildings
50,000
Copyrights
41,500
Accounts Payable
78,500
Salaries Payable
15,900
Interest payable
6,200
Notes payable
288,648
Bonds payable
200,000
Common stock
160,000
Retained earnings deficit
40,524
Sales
215,789
Cost of goods sold
62,300
Advertising expenses
15,000
Utilities expenses
8,000
Salaries expenses
12,800
Insurance expenses
8,540
Bad debt expenses
4,100
Depreciation expenses
9,100
Gain on sale of land
5,600
Interest revenue
2,250
Interest expenses
4,670
Total
1,061,987
1,061,987
Hightower company
Trial Balance
As on December 31, 2018
Particulars
Debit
Credit
Cash
34,900
Accounts receivable
63,363
Allowance for doubtful debts
4,100
Merchandise Inventory
187,790
Prepaid Insurance
6,000
Land
125,000
Office equipment
245,800
Accumulated depreciation-office equipment
35,000
Buildings
192,600
Accumulated depreciation- Buildings
50,000
Copyrights
41,500
Accounts Payable
78,500
Salaries Payable
15,900
Interest payable
6,200
Notes payable
288,648
Bonds payable
200,000
Common stock
160,000
Retained earnings deficit
40,524
Sales
215,789
Cost of goods sold
62,300
Advertising expenses
15,000
Utilities expenses
8,000
Salaries expenses
12,800
Insurance expenses
8,540
Bad debt expenses
4,100
Depreciation expenses
9,100
Gain on sale of land
5,600
Interest revenue
2,250
Interest expenses
4,670
Total
1,061,987
1,061,987