Question

Problem 5-05A a, b1-b3, c-e (Video) The trial balance of Blue Spruce Corp. contained the following accounts at November 30, the end of the company's fiscal year. Blue Spruce Corp. Trial Balance November 30, 2020 Credit Debit $ 8,500 28,500 42,500 6,100 131,000 $ 27,000 50,500 39,400 50,000 40,000 Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Cost of Goods Sold Salaries and Wages Expense Advertising Expense Utilities Expense Maintenance and Repairs Expense Freight-Out Rent Expense Totals 10,500 755,800 8,800 497,400 139,600 24,000 13,900 11,600 16,400 23,800 $962,700 $962,700 Adjustment data: 1. Supplies on hand totaled $2,500. 2. Depreciation is $14,000 on the equipment. 3. Interest of $4,000 is accrued on notes payable at November 30. 4. Inventory actually on hand is $41,800.

Answer 1

$ $ $ $ $ 755,800 8.800 747,000 498,100 248,900 Blue Spruce Corp. Income Statement For the Month Ended November 30, 2020 Revenue Sales Revenue Less: Sale returns and allowences Net Sles Cost of Goods sold Gross Profit Operating expenses Salaries and wages expensse $ 139,600 Advertising Expense $ 24,000 Utilities expenses $ 13,900 Maintenance and repair charges $ 11,600 Freight Out $ 16,400 Rent Expense $ 23,800 Supplies Expense $ 3,600 Depreciation Expense $ 14,000 Total Operating Expenses Net Operating Income Non-Operating Expensse Interest Expenses Net Loss $ $ 246,900 2.000 4.000 (2.000)

81,400 Blue Spruce Corp. Balance sheet November. 30.2020 Assets Current Assets Cash $ 8,500 Accounts Reeivable $ 28,600 Inventory $ 41,800 Supplies $ 2.500 Total Current assets $ Property, plant and Equipment Equipment $ 131,000 Less: Accumulated Depreciation S 41,000 $ Total assets $ Liabilities and Stockholders' equity Current Liabilities Accounts Payable $ 39,400 Total current liabilities $ 39,400 Long Term Liabilities Notes payable $ 54,500 Total Liabilities $ Stockholders' Equity Common stock $ 50,000 Retained Earnings IS 27,500 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 90,000 171,400 93,900 77.500 171.400

Working Notes: Supplies Expenses = $6,100-$2,500 = $3.600 Cost of Goods Sold = $42,500-$41,800 = $700 Accumulated Depreciation = $27,000+$14.000 = $41,000 Blue Spruce Corp. Statement of Retained Earnings For the Month Ended November 30, 2020 Retained Earnings Beginning balance Less: Net Loss $ $ $ 40,000 (2.000) 38.000 10.500 27,500 Less: Dividends Retained Earnings Endingbalance S 27 30