question archive The following trial balance was taken from the books of AIS Unlimited Corporation on December 31, 2015
The following trial balance was taken from the books of AIS Unlimited Corporation on December 31, 2015
Subject:FinancePrice: Bought3
The following trial balance was taken from the books of AIS Unlimited Corporation on December 31, 2015. Account Debit Credit ——————— ————— —————— Cash $ 12,000 Accounts Receivable 40,000 Note Receivable 7,000 Allowance for Doubtful Accounts $ 1,800 Merchandise Inventory 54,000 Prepaid Insurance 4,000 Furniture and Equipment 130,000 Accumulated Depreciation of F. & E. 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings ? Sales 310,000 Cost of Goods Sold 131,000 Salaries Expense 50,000 Rent Expense 12,000 ———————— ———————— Totals $440,000 $440,000 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $3,000. b. Estimated bad debts, 2% of gross sales. c. Depreciation on furniture and equipment, 10% per year. d. Interest at 8% is receivable on the note for one full year. e. Accrued salaries at December 31, $6,000. INSTRUCTIONSA. Prepare the necessary adjusting entries.B. Prepare a single step income statement, a statement of retained earnings, and a balance sheet in good form.C. Prepare a multi-step income statement (30% of the expenses are selling and 70% are administrative).D. Prepare the necessary closing entries.
