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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 53
Santo Company's adjusted trial balance on December 31, 2015, follows.
Required
1. Prepare an income statement and a statement of owner's equity for the year 2015, and a classified balance sheet at December 31, 2015. There are no owner investments in 2015.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two columns for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
Analysis Component
4. Assume for this part only that
a. None of the $600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.
b. There are no earned and unpaid wages at the end of the year. ( Hint: Reverse the $2,700 wages payable accrual.)
Describe the financial statement changes that would result from these two assumptions.
Required
1. Prepare an income statement and a statement of owner's equity for the year 2015, and a classified balance sheet at December 31, 2015. There are no owner investments in 2015.
2. Enter the adjusted trial balance in the first two columns of a six-column table. Use the middle two columns for closing entry information and the last two columns for a post-closing trial balance. Insert an Income Summary account (No. 901) as the last item in the trial balance.
3. Enter closing entry information in the six-column table and prepare journal entries for it.
Analysis Component
4. Assume for this part only that
a. None of the $600 insurance expense had expired during the year. Instead, assume it is a prepayment of the next period's insurance protection.
b. There are no earned and unpaid wages at the end of the year. ( Hint: Reverse the $2,700 wages payable accrual.)
Describe the financial statement changes that would result from these two assumptions.
Explanation
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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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