Prepare worksheet, income statement and closing entries
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The trial balance of the Mario Company was prepared from the record of the
company on November 30, 20X2, the close of its fiscal year.
Mario Company
Trial Balance
November 30, 20X2
Cash $12,200
Accounts Receivable 16,300
Allowance for Doubtful Accounts $200
Inventory—12/1/X1 14,175
Unexpired Insurance 660
Supplies on Hand 265
Land 18,000
Building 22,000
Accumulated Depreciation—Building 6,000
Office Equipment 6,800
Accumulated Depreciation—Office Equipment 2,100
Accounts Payable 11,400
Mortgage Payable 9,000
Capital Stock 40,000
Retained Earnings 2,200
Dividends 8,000
Sales 172,000
Sales Returns and Allowances 600
Sales Discounts 2,700
Purchases 109,800
Purchase Returns and Allowances 1,200
Purchase Discounts 2,300
Transportation-In 900
Salaries Expense 23,000
Travel Expense 5,200
Office Expense 1,300
Professional Fee Expense 2,500
Telephone Expense 1,200
Building Repair Expense 800
$246,400 $246,400
Additional data:
a. The Allowance for Doubtful Accounts should be increased by $400.
b. Merchandise Inventory at November 30, 20X2, was $16,200.
c. Unexpired Insurance on November 30, 20X2, amounted to $440.
d. Supplies on Hand November 30, 20X2, $120.
e. Building depreciation is calculated at 5% per year.
f. Office depreciation is calculated at 10% per year.
g. Salaries accrued at November 30, 20X2, are $400.
REQUIRED: 1. Prepare a work sheet. (The adjusted trial balance columns are to be omitted.)
2. Prepare an income statement for the year. 3. Prepare closing entries
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The expert prepares a worksheet, income statement and closing entries.
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