Style Trial Balance as at December 31, 2016 A/C Name DR S CR S 1 500 000 4,580,0
ID: 2548042 • Letter: S
Question
Style Trial Balance as at December 31, 2016 A/C Name DR S CR S 1 500 000 4,580,000 Cash Accounts Receivable Isterevt Receivable Merchandise 5,400,054 1200 000 6,000 000 Peepaid lasurance Fursitore and Equipmen 1770000 1 450,000 Accounts Payable Sales Commission Payuble Salaries Payeble Tnearned Sales Reveeue Mike Right Capital Mike Right, Witbdrawal Sales Reverme Earoed 8, 400.05 21 668,000 Salee Discorots Sales Reterma and A Cost of Goods Sold 248000 9210 000 lowaces alaries Expes Keon Esperse 1.800 000 49 000 Insurance Expense 5,000 CGerrral EspeoseExplanation / Answer
Right's Merchandise Company Amount in $ Date Account Title & Explanations Debit Credit December 31, 2016 Interest Receivable 250000 Interest Revenue 250000 To record the accrued interes revenue December 31, 2016 Insurance expense 1000000 Prepaid Insurance 1000000 To record the insurance expense December 31, 2016 Depreciation on furniture 590000 Accumulated depreciation on furniture 590000 To record the depreciation on furniture December 31, 2016 Unearned sales revenue 4000000 Sales Revenue 4000000 To record the sales revenue December 31, 2016 Salaries expense 450000 Salaries Payable 450000 To record the accrued salaries December 31, 2016 Sales commission expense 450000 Sales commission payable 450000 To record the accrued sales commission. December 31, 2016 Cost of goods sold 5400054 Merchandise Inventory 5400054 Merchandise Inventory 5500000 Cost of goods sold 5500000 To record adjustment inventory against cost of goods sold a Multi step Income statement Gross Sales Revenue 25668000 Less : Sales Returns & allowance 248000 Less : Sales Discounts 115000 Net Sales Revenue 25305000 Interest Revenue 250000 Less: Cost of goods sold 9110054 Gross Profit 16444946 Less : Operating expenses Travelling expense 225000 Sales commission expense 2600000 Salaries expense 4950000 Rent expense 1800000 Utilities expense 849000 Depreication expense-furniture 590000 Insurance expense 1000000 Advertising expense 345000 General expense 166000 12525000 Net Income 3919946 b Statement of owner's equity Beginning Balance 8000000 Add: Net Income of the year 3919946 Less: withdrawals 1000000 Mike Right's capital, ending Balance 10919946 c Classified Balance sheet Asset Current Asset Cash 1500000 Accounts Receivable 4580000 Prepaid Insurance 200000 Interest receivable 250000 Inventory 5500000 Total current Asset 12030000 Non-current asset Tangible Fixed Asset Furniture & Equipment 6000000 Less : Accumulated Depreciation 2360000 Total Non current asset 3640000 Total asset 15670000 Liabilities Current Liabilities Accounts Payable 1450000 Salaries Payable 450000 Sales commission payable 450000 Unearned Sales Revenue 2400054 Total current Liabilties 4750054 Owner's Equity Mike Right capital 10919946 Total Liabilties & Owner's equity 15670000 We appreciate rating of our answers Thank You