Please finish the worksheet, post closing entries, working capital ratio¤t
ID: 2578477 • Letter: P
Question
Please finish the worksheet, post closing entries, working capital ratio¤t ratio, statement of retained earnings(show formulas)The following items should be considered in adjusting the accounts for financial statement preparation: 1. On February 1, 2017 a 12-month insurance policy was purchased. No expense has been recoginized for 2017. 2. Signed a one year lease for rental space on March 1, 2017. By paying for the entire year, the landlord offered a reduced rate 3. The physical inventory count of Merchandise Inventory indicated an amount of $173,880. 4. Supplies on hand at December 31, 2017 total $2,051 5. Store Equipment is depreciated on a straight-line basis; residual value is $10,000 with service life of 10 years. The assets were held the entire year On August 1, issued Carter Supplies a six-month note receivable at a 5% annual interest rate. Management estimates 2.5% of its gross accounts receivable to be uncollectible. 8 On September 1, 2017 borrowed funds. The note bears 4.8 % annual interest. 9. Salaries & Wages of $6,862 are accrued and unpaid at December 31, 2017 10 Accrued utilities totaled $798.
Explanation / Answer
Unadjusted trial balance Adjusting entries Adjusted trial balance Income statement Balance sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 71260 71260 71260 Accounts receivable 94080 94080 94080 Allowance for doubtful accounts 840 1512 2352 2352 Interest receivable 335 335 335 Merchandise inventory 178500 4620 173880 173880 Prepaid insurance 7560 6930 630 630 Prepaid rent 23520 19600 3920 3920 Supplies 31920 29869 2051 2051 Notes receivable 16100 16100 16100 Stores equipment 287280 287280 287280 Accumulated depreciation 31080 27728 58808 58808 Accounts payable 134400 134400 134400 Salaries and wages payable 6862 6862 6862 Interest payable 414 414 414 Utilities payable 798 798 798 Notes payable (due 2018) 25900 25900 25900 Common stock 84000 84000 84000 Retained earnings 273000 273000 273000 Dividends 33600 33600 33600 Sales 2712500 2712500 2712500 Sales return and allowance 16800 16800 16800 Sales discount 36120 36120 36120 Cost of goods sold 2003260 4620 2007880 2007880 Salaries and wages expense 456120 6862 462982 462982 Depreciation expense stores 27728 27728 27728 Bad debt expense 1512 1512 1512 Insurance expense 6930 6930 6930 rent expense 19600 19600 19600 Supplies expense 29869 29869 29869 Utilities expense 5600 798 6398 6398 Interest revenue 335 335 335 Interest expense 414 414 414 Total 3261720 3261720 98668 98668 3299369 3299369 2616233 2712835 683136 586534 Net income 96602 96602 Total 683136 683136 Closing entries 1 Sales 2712500 Interest revenue 335 Income summary 2712835 2 Income summary 2616233 Sales return and allowance 16800 Sales discount 36120 Cost of goods sold 2007880 Salaries and wages expense 462982 Depreciation expense stores 27728 Bad debt expense 1512 Insurance expense 6930 rent expense 19600 Supplies expense 29869 Utilities expense 6398 Interest expense 414 3 Income summary 96602 Retained earnings 96602 4 Retained earnings 33600 Dividends 33600 Statement of retained earnings Beginning Retained earnings 273000 Add Net income 96602 less Dividend -33600 Ending retained earnings 336002 Current assets Cash 71260 Accounts receivable 94080 Allowance for doubtful accounts -2352 Interest receivable 335 Merchandise inventory 173880 Prepaid insurance 630 Prepaid rent 3920 Supplies 2051 Notes receivable 16100 Total current assets 359904 Current liabilities Accounts payable 134400 Salaries and wages payable 6862 Interest payable 414 Utilities payable 798 Notes payable (due 2018) 25900 Total current liabilities 168374 Working capital = Current assets - Current liabilities Current assets 359904 Current liabilities 168374 Working capital 191530 Current ratio = Current assets / current liabilities Current assets 359904 Current liabilities 168374 Current ratio 2.14