Adjusting entries : | |||||||||
Date | Account titles and explanation | Debit | Credit | ||||||
2019 | |||||||||
Oct 31. | Dividends | 30000 | |||||||
Dividend payable | 30000 | ||||||||
(Dividend recorded) | |||||||||
Feb 15. & Nov 15. | Stock dividend | (1000*20%*30) | 6000 | ||||||
Common shares | (1000*20%*20) | 4000 | |||||||
Contributed surplus | (Plug) | 2000 | |||||||
(Par value=20000/1000=$20 per share) | |||||||||
(Stock dividend declared and paid) | |||||||||
Dec 31. | No entry required | ||||||||
Number of shares will double and par value will halve. | |||||||||
Number of shares=[1000+(1000*20%)]*2=(1000+200)*2=2400 shares | |||||||||
Par value=20/2=$10 per share | |||||||||
Dec 31. | No adjustment required | ||||||||
(Amortization will start from next year since acquiaition was on | |||||||||
iast day of current year) | |||||||||
Dec 31. | Depreciation expense-Furniture | (70000/10) | 7000 | ||||||
Accumulated depreciation-Furniture | 7000 | ||||||||
(Depreciation recorded) | |||||||||
Revised trial balance | |||||||||
Debit | Credit | ||||||||
Accounts payable | 16000 | ||||||||
Accounts receivable | 50000 | ||||||||
Accumulated depreciation-Furniture | (14000+7000) | 21000 | |||||||
Accumulated other comprehensive income | 12000 | ||||||||
Advertising expense | 14000 | ||||||||
Allowance for doubtful accounts | 5000 | ||||||||
Baddebt expense | 4000 | ||||||||
Cash | 187000 | ||||||||
Client list | 15000 | ||||||||
Common shares | (20000+4000) | 24000 | |||||||
Contributed surplus | (10000+2000) | 12000 | |||||||
Depreciation expense-Furniture | 7000 | ||||||||
Furniture | 70000 | ||||||||
Goodwill | 40000 | ||||||||
Income tax expense | 30000 | ||||||||
Income tax payable | 10000 | ||||||||
Note payable | 20000 | ||||||||
Preferred shares | 35000 | ||||||||
Prepaid rent | 9000 | ||||||||
Rent expense | 35500 | ||||||||
Retained earnings,beginning of year | 80000 | ||||||||
Salary expense | 109000 | ||||||||
Service revenue | 332500 | ||||||||
Unearned service revenue | 9000 | ||||||||
Dividends | 30000 | ||||||||
Dividend payable | 30000 | ||||||||
Stock dividend | 6000 | ||||||||
Totals | 606500 | 606500 | |||||||
a) | Statement of earnings | ||||||||
$ | $ | ||||||||
Revenue: | |||||||||
Service revenue | 332500 | ||||||||
Expenses: | |||||||||
Advertising expense | 14000 | ||||||||
Baddebt expense | 4000 | ||||||||
Depreciation expense-Furniture | 7000 | ||||||||
Rent expense | 35500 | ||||||||
Salary expense | 109000 | 169500 | |||||||
Income before taxes | 163000 | ||||||||
Less: Income tax expense | 30000 | ||||||||
Net income | 133000 | ||||||||
b) | Statement of changes in shareholder's equity | ||||||||
Common shares | Preferred shares | Contributed surplus | Retained earnings | Accumulated other comprehensive income | Total | ||||
Beginning balance | 20000 | 35000 | 10000 | 80000 | 12000 | 157000 | |||
Stock dividend | 4000 | 2000 | -6000 | 0 | |||||
Cash dividend | -30000 | -30000 | |||||||
Net income | 133000 | 133000 | |||||||
Ending balance | 24000 | 35000 | 12000 | 177000 | 12000 | 260000 |
31-Dec-19 Account name Debit Credit 16,000 50,000 14,000 12,000 14,000 5,000 4,000 187,000 15,000 20,000 10,000...
Prepare in proper form a classified Statement of Financial Position as at December 31, 2019 On October 31st, 2019, the company declared $30,000 cash dividends. The dividends were paid on February 12, 2020. On February 15th, 2019, the company declared a 20% common stock dividends when market share price was $30. The shares were distributed on November 15th, 2019 when market share price was $32. On December 31, 2019, the company declared a two-for-one stock split on common shares. Client/Customer...
Prepare in proper form a classified Statement of Financial Position as at December 31, 2019 On October 31st, 2019, the company declared $30,000 cash dividends. The dividends were paid on February 12, 2020. On February 15th, 2019, the company declared a 20% common stock dividends when market share price was $30. The shares were distributed on November 15th, 2019 when market share price was $32. On December 31, 2019, the company declared a two-for-one stock split on common shares. Client/Customer...
Prepare in proper form a Statement of Changes in Shareholders’ Equity for the year ended December 31, 2019 On October 31st, 2019, the company declared $30,000 cash dividends. The dividends were paid on February 12, 2020. On February 15th, 2019, the company declared a 20% common stock dividends when market share price was $30. The shares were distributed on November 15th, 2019 when market share price was $32. On December 31, 2019, the company declared a two-for-one stock split on...
Prepare Statement of Earnings for year ended December 31, 2019 On October 31st, 2019, the company declared $30,000 cash dividends. The dividends were paid on February 12, 2020. On February 15th, 2019, the company declared a 20% common stock dividends when market share price was $30. The shares were distributed on November 15th, 2019 when market share price was $32. On December 31, 2019, the company declared a two-for-one stock split on common shares. Client/Customer List was purchased on December...
Debit $ 5,000 16,500 2,000 187,000 Account Title Credit Cash Accounts receivable Office supplies Trucks 1.66 $ 38,522 Accumulated depreciation-Trucks polnts Land 75,000 9,000 3,000 52,000 41,590 139,000 Accounts payable Interest payable Long-term notes payable Common stock Retained earnings eBook Dividends 19,000 Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks 123,000 24,847 57,687 Hint 8,500 10,578 $406,112 $406,112 Totals Print The Retained Earnings account balance was $139,000 at December 31 of the prior year. (1) Prepare...
Income statement data: Advertising expense Cost of goods sold Dellvery expense S 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 .500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 Depreciation expense-office buildings and equipment Depreciation expense -store buildings and equipment Income tax expense interest expense Interest revenue Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales salaries expense Store supplies expense earnings and balance sheet data: Accounts payable Accounts recelvable s 194300 545,000 1,580,000 4,126,000 8,450...
Credit Debit $ 10,000 26,000 7,893 187,000 $ 38,522 40,000 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Totals 14,000 16,000 55,000 42,861 135,000 45,000 122,000 24,847 67,302 3,000 12,341 $ 423,383 $ 423,383 Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as of WILSON TRUCKING COMPANY...
Credit $ 2,000 BUSI 1043 INC. Adjusted Trial Balance Asat December 31, 2019 Debit Cash $ 20,000 Accounts Receivable $ 17,000 Allowance for doubtful accounts Inventory $ 10,000 Prepaid Expenses $ 2,000 Long Term Investments $100,000 Building $300,000 Accumulated Depreciation - Building Equipment $ 75,000 Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Interest Payable Income Tax Payable Unearned Revenue Current portion of bank loan payable Bank loan payable Common Shares Dividends Declared $ 16,000 $ 30,000 $ 15,000 $...
• Income Statement for the year ending December 31, 2019 • Statement of Retained Earnings for the year ending December 31, 2019 • Statement of Stockholders Equity for the year ending December 31, 2019 • Balance Sheet at December 31, 2019 • Statement of Cash Flows for the year ending December 31, 2018 Note: For Earnings per Share (EPS) calculations, use 10,000 shares of common stock as the weighted average number of shares outstanding. Credit Debit 64. 200 2000 5,000...
Bruin Corporation has been authorized to issue 5,000 shares of 12 percent noncumulative, nonparticipating preferred stock with a par value of $100 per share and 200,000 shares of common stock with a par value of $10 per share. As of December 31, 2019, 2,600 shares of preferred stock and 19,000 shares of common stock had been issued. A condensed trial balance as of December 31, 2019, is provided below. Bruin Corporation Trial Balance (Condensed) December 31, 2019 Account Name Debit...