Question

Sam's Pizzeria International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an alphabetical list of accounts and amounts reported in a recent year's set of financial statements. The accounts have normal debit or credit balances and the dollars are rounded to the nearest million.

Accounts payable	$	36		Interest expense	$	13
Accounts receivable		67		Interest revenue		3
Accrued expenses payable		72		Inventories		37
Accumulated depreciation		414		Land		38
Additional paid-in capital		192		Long-term debt		480
Advertising expense		76		Long-term notes receivable		24
Buildings and leasehold improvements		232		Loss on impairment of assets		6
Cash		26		Other assets		52
Common stock		1		Other long-term liabilities		77
Cost of sales		1,061		Prepaid expenses and other current assets		51
Depreciation expense		48		Rent and utilities expense		66
Equipment		389		Restaurant and franchise sales revenue		1,788
General and administrative expenses		82		Retained earnings		?
Income tax expense		38		Salaries and benefits expense		250
Income tax receivable		8		Short-term notes receivable		8
Income taxes payable		13		Treasury stock		603
Intangible assets		93		Unearned revenue		10

Prepare an adjusted trial balance. (Enter your answers in millions.)

Answer 1

Adjustments Debit Credit 232 1 389 Unadjusted Trial balance Particulars Debit Credit Accounts payable 36 Accounts receivable 67 Accrued expenses payable 72 Accumulated depreciation 414 Additional paid-in capital 192 Buildings and leasehold improvements Cash 26 Common stock Equipment Income tax receivable 8 Income taxes payable 13 Intangible assets 93 Inventories 37 Land 38 Long-term debt 480 Long-term notes receivable 24 Other assets 52 Other long-term liabilities 77 Prepaid expenses and other current ass 51 Short-term notes receivable 8 Treasury stock 603 Unearned revenue 10 Retained earnings 182 Restaurant and franchise sales revenue 1,788 Interest revenue 3 Cost of sales 1,061 Adjusted trial balance Debit Credit 36 67 72 414 192 232 26 1 389 8 13 93 37 38 480 24 52 77 51 8 603 10 333 151 1,061

Advertising expense Depreciation expense General and administrative expenses Income tax expense Interest expense Loss on impairment of assets Rent and utilities expense Salaries and benefits expense Totals 76 48 82 38 13 6 66 250 3,268 3,268 151 1,628 1,628

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