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    Journalize adjustments, post, trial balance, income statement

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    The trial balance of Save-More Wholesale Company contained the accounts shown at December 31, the end of the company's fiscal year.
    SAVE-MORE WHOLESALE COMPANY
    10-Column Worksheet
    December 31, 2007
    Unadjusted Trial Balance Adjustment Adjusted Trial Balance Income Statement Balance Sheet
    Cash $33,400
    Accounts Receivable 37,600
    Merchandise Inventory 70,000
    Land 92,000
    Buildings 200,000
    Accum Deprec - Buildings $60,000
    Equipment 83,500
    Accum Deprec - Equipment 40,500
    Notes Payable 54,700
    Accounts Payable 37,500
    Common Stock 160,000
    Retained Earnings 68,200
    Dividends 10,000
    Sales 922,100
    Sales Discounts 5,000
    Cost of Goods Sold 709,900
    Salaries Expense 71,300
    Utilities Expense 9,400
    Repair Expense 8,900
    Gas and Oil Expense 7,200
    Insurance Expense 4,800
    $1,343,000 $1,343,000
    Account title
    Account title
    Account title
    Account title

    Adjustment data:
    1. Depreciation is $10,000 on buildings and $9,000 on equipment. (Both are administrative expenses.)
    2. Interest of $5,500 is due and unpaid on notes payable at December 31.
    Other data: $15,000 of the notes payable are payable next year.

    Instructions
    (a) Journalize the adjusting entries.

    1A 31/12/2007 Account title Amount
    Account title Amount

    1B 31/12/2007 Account title Amount
    Account title Amount

    2 31/12/2007 Account title Amount
    Account title Amount

    (b) Create T accounts for all accounts used in part (a). Enter the trial balance amounts into the T accounts and post the adjusting entries.

    Account Title Account Title
    12/31/07 Amount 12/31/07 Amount
    12/31/07 Amount
    12/31/07 Formula

    Account Title Account Title
    12/31/07 Amount 12/31/07 Amount
    01/00/00 Amount
    01/00/00 Formula

    Account Title Account Title
    12/31/07 Amount 12/31/07 Amount

    (c) Prepare an adjusted trial balance.

    (d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2007.

    SAVE-MORE WHOLESALE COMPANY SAVE-MORE WHOLESALE COMPANY
    Income Statement Balance Sheet
    For the Year Ended December 31, 2007 December 31, 2007
    Account title Amount Title
    Account title Amount Account title $0
    Title Formula Account title 0
    Account title Amount Account title 0
    Title Formula Title 0
    Title Title
    Account title Amount Account title 0
    Account title Amount Account title $0
    Account title Amount Account title 0 0
    Account title Amount Account title 0
    Account title Amount Account title 0 0
    Account title Amount Title 0
    Account title Amount Title $0
    Title Formula
    Title Formula Title
    Title Title
    Account title Amount Title
    Title Formula Account title Amount
    Account title Amount
    SAVE-MORE WHOLESALE COMPANY Account title Amount
    Statement of Retained Earnings Title Formula
    For the Year Ended December 31, 2007 Title
    Title Amount Account title Amount
    Title Amount Total liabilities Formula
    Formula Title
    Title Amount Account title Amount
    Title Formula Account title Amount
    Title Formula
    Title Formula

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    https://brainmass.com/business/income-statement/journalize-adjustments-post-trial-balance-income-statement-341741

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    The expert journalize adjustments, post, trial balance and income statements. Journalized adjustments and income statements are provided.

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