Question

djusted trial balance of Big Construction company on December 31, 2020, hed the attached accounts at the end of the company's calendar year. Inventory taken on12/31/2020 was $42,000 Depreciation on equipment was $9,000 Unpaid accrued salaries were $2,800 Unexpired rent amounted to $2,500 4 Supplies on hand were $1,800 Accrued Sales revenue on 12/31/2020 was $3,400 6 7 Expired Insurance amounted to $2,000 Interest on the company's notes receivable at year-end amounted to $400 Unearned rent revenue earned at year-end amounted to $4,500 8 Instructions: Journalize the above adjusting entries. Complete the worksheet using the above year-end information. Prepare a multiple-step income statement fior Big Construction Company as of December 31, 2020. Prepare an owner's equity statement for Big Construction Company as of Decem a b d 2020. Prepaire a classified balance sheet for Big Construction Company as of Decemb 2020. f Journalize the closing entries.

Answer 1

Solved first four sub parts as per HomeworkLib policy.

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Adjsuted Part b Undadjusted Adjustments Balance Sheet Part a Income Stat Debit Debit Debit Credit Credit Debit Credit Debit Credit Credit Event Debit Credit Account $ 220,000 $ 24,000 $ 23,000 $ 220,000 $ 24,000 $ 220,000 $ 24,000 $ 26,400 $42,000 Cash $ 47,000 Income Summary Notes Receivable 1a $47,000 $ $26,400 Accounts Receivable Inventory 3,400 $ 42,000 $ 47,000 42,000 $ 47,000 Inventory $ 42,000 $ $ $ Prepaid Insurance 2,000 $ Inventory 4,300 2,300 2,300 $ 42,000 $ $ Income Summary Prepaid Rent 8,400 5,900 2,500 2,500 $ $ 1,100 $ $ $ 28,000 $ 90,000 Supplies 2,900 1,800 1,800 $28,000 $ 90,000 $ 9,000 $ 28,000 $ 90,000 Land 2 Depreciation Expense $ 9,000 Accumulated Depreciation-Equipment Equipment $ 27,000 $ 28,000 $ 18,000 $ 28,000 $ 27,000 $28,000 $ Accumulated Dep-Equipment 9,000 Accounts Payable Salaries and wages Expense $2,800 Salaries and wages Payable $12,500 $ $ $ Unearned Rent Revenue 2,800 4,500 8,000 8,000 $ 2,800 Salaries and wages Payable $ $ 2,800 2,800 Rent Expense ($8,400-$2,500) Prepaid Rent $5,900 Interest Payable $ $ 4 400 400 400 $ 75,000 $ 124,000 $ 75,000 $5,900 Mortgage Payable Owner's Capital $75,000 124,000 $124,000 $ 1,100 $4,700 Supplies Expense ($2,900-$1,800) Owner's Drawing $ $ 5 4,700 4,700 $ Income Summary $47,000 $ 42,000 $ $ Supplies 1,100 5,000 5,000 $ 286,900 $ 279,000 $ 286,900 $ Sales Revenue 7,900 $3,400 $ $ $ Sales Return and allowance 2,100 2,100 6 Accounts Receivable 2,100 $ $ Sales Revenue Sales Discount 3,400 1,900 1,900 1,900 $ 51,000 $ 51,000 $ 51,000 Purchases 7 Insurance Expense $2,000 $ $ $ Purchase return and allowance 800 800 800 $ 2,000 Purchase Discount $ $ Prepaid Insurance 1,200 1,200 1,200 $ $ 21,000 $ 18,000 $ $ Freight in 3,000 3,000 3,000 8 $ 26,900 $ 20,800 $26,900 $ 20,800 $ $ Interest Expense Rent Expense 400 5,900 Interest Payable $ Salaries and wages Expense $ 400 2,800 $ $ Utilities Expense 2,800 2,800 2,800 9 $ 4,500 $ $ $ Unearned Rent Revenue Advertising Expense 1,900 1,900 1,900 $ $ Interest Expense Rent Revenue 4,500 2,200 400 2,600 2,600 $ 15,000 $ 15,000 $15,000 Interest Revenue $ $ $ Rent Revenue Part c 2,700 2,700 2,700 $ $ Depreciation Expense 9,000 9,000 9,000 $ 286,900 $ $ $ Sales Revenue Insurance Expense 2,000 2,000 2,000 Supplies Expense 1,100 1,100 Less: 1,100 $ 2,100 $1,900 (4,000) $ 282,900 Sales Return and allowance Sales Discount Net Sales 556,200 556,200 118,100 118,100 571,800 571,800$ 130,100 306,600 $ 441,700 265,200 Cost of Goods Sold: Total $ 176,500 $306,600 $ 306,600 $441,700 $ 441,700 Beginning Inventory 47,000 S 176,500 Net Income Add: Purchase Cost Grand Total

Part c $286,900 Sales Revenue Less: $ Sales Return and allowance 2,100 1,900 $ (4,000) $ 282,900 Sales Discount Net Sales Cost of Goods Sold: $47,000 Beginning Inventory Add: Purchase Cost $51,000 Purchases Less: Purchase Return and allowance (800) $(1,200) $ 49,000 Purchases Discount Net Purchases $3,000 Freight in $ 52,000 Net Purchases $99,000 Less: Ending invnetory (42,000) $(57,000) $ 225,900 Cost of goods sold Gross Margin Less: operating expense: $ 26,900 $ 20,800 Rent Expense Salaries and wages Expense Utilities Expense 2,800 $ Advertising Expense 1,900 $ Depreciation Expense 9,000 $ Insurance Expense 2,000 Supplies Expense 1,100 Total Operating Expense Operating Income Other Income/Losses: $(64,500) $ 161,400 $15,000 $ 2,700 Interest Revenue Rent Revenue $ 17,700 $ (2,600) $ 15,100 $ 176,500 Interest Expense Net Income Part d $124,000 $ 176,500 $ (4,700) $ 295,800 Beginning Balance Add: Net Income Less: Drawing Endign Balance