Question

39. Completion of a work sheet, preparation of statements, adjusting and closing entries (LG 2, 4-7) Following is the trial balance of Orange Company on December 31, 2011, the end of the fiscal year: 256 = Acct. Account Title No. Edep exp 101 Cash Accounts Receivable 130 Merchandise Inventory 136 A Store Supplies 165 Store Equipment 166 E Accumulated Depreciation-Store Equipment 201 L Accounts Payable 202 Notes Payable (due 2012) 231 C Unearned Rent 331 e Common Stock 360 of Retained Earnings 372 Dividends 401 Sales 403 Sales Discounts 501 Purchases 502 Transportation in 504 Purchases Discount 602 Sales Salaries Expense 703 Office Salaries Expense 711 Rent Expense* 721 Utilities Expense* 803 R Rent Revenue Totals Classified as general and administrative expense. int exp int pau sal 'pah tax epo Debits Credits 12,000 $ 21,000 4 000 40,000 15,000 12.000 30,000 150,000 $ 40,000 52.000 30,000 10,000 3,000 60,000 38,000 2,000 352,000 5,000 196,000 4,000 3,000 40,000415 CO 20.000 ISOO 16,000 7,000 10,000 3.00 $546,000 $546,000 l,ouu Tovu 3ood 10,000

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Answer 1

Credit Credit Debit $ 27,000 30000-3000 $ 27,000 Debit $ 21,000 $ 40,000 $ 15,000 $ 3,000 $ 1,50,000 $ 12,000 $ 12.000 $ 1,000 No Accounts Title Stores Supplies Expenses Store Supplies Depreciation Expenses Accumulated Depreciation Interest Expenses Interest Payable Salaries Expenses Salaries payable Unearned Rent Rent Revenue Income Tax Expenses Income Tax Payable $ 1,000 $ d $ 3,000 $ 3,000 52,000 30,000 1.000 10,000 3,000 10,000 $ $ $ $ $ 3,000 $ 3,000 $ 10,000 $ 10.000 $ $ 60,000 38,000 Accounts Title Cash Accounts Receivable Merchandise Inventory Store Supplies Store Equipment Accumulated Depreciation - Store Equipment Accounts payable Interest Payable Income Tax Payable Salaries payable Notes Payable Unearned Rent Revenue Common Stock Retained earnings Dividend Sales Revenue Rent Revenue Sales Discounts Purchases Transportation IN Purchases Discounts Depreciation Expenses Interest Expenses Stores Supplies Expenses Income Tax Expenses Sales Salaries Expenses Office Salaries Expenses Rent Expenses Utilities Expenses Closing Entries Retained earnings Dividend 1. $ 2,000 $ 2,000 $ 2,000 $ $ 3,52,000 13,000 Sales Revenue Rent Revenue Purchases Discounts Income Summary TAIAIA $ $ $ 3,52,000 13,000 3.000 $ $ $ 5.000 1,96,000 4,000 $3,68,000 3,000 $ $ 3,41,000 $ Income Summary Sales Discounts Purchases Transportation IN Depreciation Expenses Interest Expenses Stores Supplies Expenses Income Tax Expenses Sales Salaries Expenses Office Salaries Expenses Rent Expenses Utilities Expenses $ 5,000 $1,96,000 $ 4,000 $ 12,000 $ 1,000 $ 27,000 $ 10,000 $ 41,500 $ 21,500 $ 16,000 $ 7,000 12,000 1,000 27,000 10,000 41,500 21,500 16,000 7,000 5,72,000 $ $ $ $ 5,72,000 4. $ 27,000 Retained Earnings Income Summary $ 27,000

$ 3,47,000 Multi Income Statement Sales Revenue $ 3,52,000 Less: Sales Discounts $ -5,000 Net Sales Less: Expenses Purchases $ 1,96,000 Less: Purchase Discounts $ -3.000 $ 1,93,000 Transportation IN $ 4,000 Depreciation Expenses $ 12,000 Assets Current Assets Cash $ 21,000 Accounts Receivable $ 40,000 Merchandise Inventory $ 15,000 Store Supplies $ 3,000 $ 79,000 Store Equipment $1,50,000 Accumulated Depreciation -Store Equipment | $ -52,000 $ 98,000 Total Assets $1,77,000 Liabilities & stockholder's equity Current Liabilities Accounts payable $ 30,000 Interest Payable $ 1,000 Income Tax Payable $ 10,000 Salaries payable $ 3,000 Notes Payable $ 10,000 Total Current Liabilities $ 54,000 Common Stock $ 60,000 Retained Earnings $ 63,000 Total liabilities and Stokholder's Equity $ 1,77,000 $ $ $ $ $ 27,000 41,500 21,500 16,000 7,000 $3,22,000 $ 25,000 Stores Supplies Expenses Sales Salaries Expenses Office Salaries Expenses Rent Expenses Utilities Expenses Operating Profit A Non-Operating Income Rent Revenue Less: Interest Expenses Income Tax Expenses Non-Operating Income B Net Income(A+B) $ $ $ 13,000 1,000 10,000 $ 2,000 $ 27,000 $ 60,000 Statement of Owner's Equity Common Stock Retained Earnings Opening Retained Earnings $ Less: Dividends $ Add: Net Income $ Closing retained Earnings 38,000 -2,000 27,000 $ 63,000