Using Financial Reports: Inferring Adjusting Entries and Information Used in Computationsa...

Using Financial Reports: Inferring Adjusting Entries and Information Used in Computationsand Recording Closing Entries

The pre-closing balances in the T-accounts of Waldman Company at the end of the third year of operations, December 31, 2011, follow. The 2011 adjusting entries are identified by letters.

Required:

1. Develop three 2011 trial balances for Waldman Company using the following format:

2. Write an explanation for each adjusting entry for 2011.

3. Record the closing journal entry at the end of 2011.

4. What was the average income tax rate for 2011?

5. What was the average issue (sale) price per share of the capital stock?