Can Someone Help With Accounting Homework Help!?!?

The following unadjusted trial balance is prepared at fiscal year-end for Rex Company.
Unadjusted Trial Balance
January 31,2011
Debit Credit
Cash $ 28,700 Dr.
Merchandise inventory 14,000Dr.
Store supplies 5,900Dr.
Prepaid insurance 2,400Dr.
Store equipment 42,900Dr.
Accumulated depreciation—Store equipment $17,500 Cr.
Accounts payable 17,000Cr.
T. Rex, Capital 41,000Cr.
T. Rex, Withdrawals 2,150Dr.
Sales 116,200Cr.
Sales discounts 2,000Dr.
Sales returns and allowances 2,250Dr.
Cost of goods sold 38,000Dr.
Depreciation expense—Store equipment 0Dr.
Salaries expense 26,000Dr.
Insurance expense 0Dr.
Rent expense 18,000Dr.
Store supplies expense 0Dr.
Advertising expense 9,400Dr.
Totals $ 191,700 $ 191,70
Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Rex Company uses a perpetual inventory system.
a. Store supplies still available at fiscal year-end amount to $2,950.
b. Expired insurance, an administrative expense, for the fiscal year is $1,450.
c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end.
1. Using the above information prepare adjusting journal entries
2. Prepare a multiple-step income statement for fiscal year 2011.

Both comments and pings are currently closed.

Comments are closed.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews