Illustration 1
The following is the trial balances of XYZ Company, a merchandising business owned by Mulu.
The accounts in the ledger of, with the Balances on the unadjusted balance on December 31,
2015, the end of the fiscal year are as follows:
XYZ Company
Unadjusted trial balances
December 31, 2015
Account tittles Dr Balances Cr Balances
Cash 98,500
Account receivable 52,400
prepaid insurances 18,600
Merchandise inventory beginning 199,500
Store Supplies 26,500
Offices Equipment 195,400
Accumulated dep.-equip. 21,500
Note payable 18,400
Account payable 24,000
Salary payable
Mulu, capital 35,900
Mulu. Drawing 8,500
Sales 1,100,000
Sales R&A 12,800
Purchased 386,000
Purchase discount 5,400
Transportation in (Fright in) 4,700
Sales salary expense. 56.500
Advertising expense 14,700
Depreciation expense
Store supplies expense
Miscellaneous expense 6.000
Office salaries expense 76,200
Rent expense 48,500
Utility expense 3,700
Insurance expense
Tax expense 5,100
Other income 8,400
TOTAL 1,213,600 1,213,600
Data needed for yearend adjustments are as follows;
1. During the year of the Store supplies unused is amount to be birr 8,700
2. At the end of the period amount of insurances expired is birr 9,250
3. Merchandise inventory on December 31 br. 243,400.00
4. Depreciation for current year, br. 9,000.
5. Accrued salaries on December 31
Sales salaries birr. 4,800
Office salaries at birr 3,500
Instruction
1) Prepare the necessary adjusting entries
2) Prepare multiple- income statement owner equity (capital) and balance sheet.
1
Illustration 2
The account and their balance in the ledger of ABC COMPANY on December 31, 2010 are as
follows:
ABC COMPANY
UNADJUSTED TRIAL BALANCE
DECEMBER 31, 2010
DR. CR.
Cash 68,175
Account receivable 112,500
Merchandise inventory 180,000
Prepaid insurance 10,600
Store supplies 3,750
Office supplies 1,700
Store equipment 112,000
Accumulated depreciation equipment 40,300
Offices equipment 50,000
Accumulated depreciation equipment 17,200
Account payable 66,700
Salaries payable 0
Unearned rent 1,200
Note payable 105,000
SARA capital 220,510
SARA drawing 40,000
Income summary
Sales 995,000
Sales return and allowance 12,500
Sales discount 6,500
Purchase 635,000
Purchasereturn and allowance 9,500
Purchasediscount 5,500
Transport in 6,200
Sales salaries expense 86,400
Advertising expense 30,000
Depreciation expense – store equipment ------
Store supplies expense ------
Miscellaneous selling expense 1,335
Office salaries expense 60,000
Rent expense 30,000
Insurance expense --------
Depreciation expense – offices equipment --------
Offices supplies expense --------
Miscellaneous selling expense 1,650
Rent income -------
Interest expense 12,600
XXX XXX
The data for year- end adjustment on December 31 are as follows:
Merchandise inventory on December 31 220,000
Insurance expired during the year 7,260
2
Inventory of supplies on December 31
o Store supplies 1,700
o Offices supplies 400
Depreciation for the year:
o Store equipment 9,500
o Offices equipment 4,800
Salary payable on December 31:
o Sales salaries 2,750
o Offices salaries 1,150
Unearned rent on December 31 400
Instruction:
1. Journalizes and post adjusting entries
2. Prepare multiple step income statement for the year ended December 31, 2010.
3. Prepare statement of owners’ equity for the year ended December 31, 2010.
4. Prepare balance sheet for the year ended December 31, 2010.
Illustration 3
The accounts and their balances in the ledger of Viaduct Co. on December 31, 2018 are as
follows:
Cash 18,000
Accounts Receivable 82,500
Merchandise Inventory 165,000
Prepaid Insurance 9,700
Supplies 6,350
Equipment 231,450
Accumulated Depreciation— Store Equipment 57,500
Accounts Payable 66,700
Salaries Payable 11,900
Unearned Rent 7,100
Note Payable 105,000
Robbin Jaeger, Capital 76,400
Robbin Jaeger, Drawing 25,000
Sales 815,000
Sales Returns and Allowances 11,900
Sales Discounts 7,100
Purchase 476,200
Salaries Expense 76,400
Advertising Expense 25,000
Interest Expense 5,000
1,139,600 1,139,600
The data needed for year-end adjustments on December 31 are as follows:
1. Physical merchandise inventory on December 31 . . . ……157,500
2. Insurance expired during the year . . . . . . . . . . . . . . . . . . . . . .3,700
3. Supplies on hand on December 31: . . . . . . . . . . . . . .. . . . . . 5,500
4. Depreciation of equipment for the year:……………………..7,300
5. Salaries payable on December 31……………………….... . .3,650
6. Unearned rent on December 31 . . . . . . . . . . . . . . . . . . . . . .. . . 400
Instruction
1. Prepare adjusting entries
2. Prepare adjusted trial balance
3
3. Prepare financial statements (income statement, statement of owners’ equity & balance
sheet)
Illustration 4
Required
1. Prepare adjusting entries
2. Prepare adjusted trial balance
3. Prepare financial statements (income statement, statement of owners’ equity & balance
sheet)
4
Illustration 5
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