Clicksor ads

Tuesday, 23 October 2012

The unadjusted trial balance of Mesa Inc., at the company’s year end of December 31 follows:

Problem 5-7A


The unadjusted trial balance of Mesa Inc., at the company’s year end of December 31 follows:

MESA INC.
Trial Balance
December 31, 2012



Debit


Credit


Cash


$22,814




Accounts receivable


31,060




Merchandise inventory


28,350




Supplies


2,840




Prepaid insurance


2,900




Land


29,570




Buildings


149,220




Accumulated depreciation—buildings




$24,250


Equipment


44,620




Accumulated depreciation—equipment




18,330


Accounts payable




33,926


Unearned revenue




4,080


Mortgage payable




147,180


Common shares




13,110


Retained earnings




31,435


Dividends


1,690




Sales




265,870


Sales returns and allowances


2,440




Sales discounts


3,239




Cost of goods sold


170,348




Salaries expense


30,940




Utilities expense


5,080




Interest expense


8,060




Income tax expense


5,010






538,181


538,181



Additional information and adjustment data:

1.


The 12-month insurance policy was purchased and was effective February 1, 2012.


2.


There was $780 of supplies on hand on December 31.


3.


Depreciation expense for the year is $6,063 for the buildings and $4,583 for the equipment.


4.


Salaries of $780 are accrued and unpaid at December 31.


5.


Accrued interest expense at December 31 is $767.


6.


Unearned revenue of $994 is still unearned at December 31. On the sales revenue that was earned, the cost of goods sold was $2,260.


7.


Of the mortgage payable, $9,880 is payable next year


8.


Income tax of $510 is due and unpaid.


9.


A physical count of inventory indicates $24,620 on hand at December 31.


10.


Common shares of $3,040 were issued during the year.


 

Prepare T accounts and enter the trial balance amounts.

Record and post the adjusting entries, assuming the company adjusts its accounts annually. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round all answers to nearest dollar. Record journal entries in the order presented in the problem.)

Post the adjusting entries. (Post entries in the order of journal entries presented in the previous part.)

Prepare an adjusted trial balance at December 31, 2012.

Prepare a multiple-step income statement for the year.

Prepare a statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Prepare a statement of financial position for the year. (List current assets in order of liquidity. List Property, plant and equipment in order of land, building and equipment.)

 



CLICK HERE TO GET THE ANSWER !!!!

No comments:

Post a Comment