Scribd
Upload
378 views1 page

Problem For Practice: Accounting For Merchandise Company

The trial balance for Loren Foelske Wholesale Company as of December 31, 2020 is provided. Adjustments need to be made for depreciation, unpaid interest, and actual inventory amount. The adjustments must be recorded, the trial balance transferred to a 6-column worksheet, and financial statements prepared including an income statement, owner's equity statement, and classified balance sheet.

Uploaded by

Siam Farhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
378 views1 page

Problem For Practice: Accounting For Merchandise Company

The trial balance for Loren Foelske Wholesale Company as of December 31, 2020 is provided. Adjustments need to be made for depreciation, unpaid interest, and actual inventory amount. The adjustments must be recorded, the trial balance transferred to a 6-column worksheet, and financial statements prepared including an income statement, owner's equity statement, and classified balance sheet.

Uploaded by

Siam Farhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem for Practice: Accounting for Merchandise Company

The trial balance of Loren Foelske Wholesale Company contained the following accounts at December 31, the
end of the company’s fiscal year 2020.
LOREN FOELSKE WHOLESALE COMPANY
Trial Balance
December 31, 2020
Accounts Name Debit Credit
Cash $ 25,400
Accounts Receivables 37,600
Merchandise Inventory 90,000
Land 92,000
Buildings 197,000
Accumulated Dep'n-Building $ 54,000
Equipment 83,500
Accumulated Dep'n-Equipment 42,400
Notes Payable 50,000
Accounts Payable 39,000
L.Foelske, Capital 267,800
L.Foelske, Drawing 10,000
Sales 904,100
Sales Discounts 6100
Cost of Goods Sold 709,900
Salaries Expense 69,800
Utilities Expense 19,400
Repair Expense 5,900
Gas and Oil Expense 7,200
Insurance Expense 3,500
Total $ 1,357,300 $ 1,357,300
Adjustment data:
1. Depreciation is $10,000 on buildings and $9,000 on equipment
2. Interest of $5,000 is due and unpaid on noted payable at December 31.
3. Merchandise inventory actually on hand is $88,900.
Other information:
1. $10,000 of the notes payable are payable next year.
Instructions:
a) Record the adjusting entries.
b) Enter the trial balance on a 6-column work sheet, and complete the work sheet.
c) Prepare a multiple-step income statement and an owner’s equity statement for the year, and a classified
balance sheet at December 31, 2020.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy