Adjusting Entry for Depreciation
Cowley Company just completed its first year of operations. The December 31 equipment account has a balance of $40,000. There is no balance in the Accumulated Depreciation—Equipment account or in the Depreciation Expense account. The accountant estimates the yearly equipment depreciation to be $8,000. Prepare the required adjusting entry to record the yearly depreciation for equipment.
Adjusting Entry for Prepaid Insurance
Cooper Inc. recorded the purchase of a three-year insurance policy on July 1 in the amount of $5,400 by debiting Prepaid Insurance and crediting Cash.
Prepare the necessary December 31 year-end adjusting entry.
Prepare Closing Entries to Retained Earnings
The Century Company’s adjusted trial balance contains the following balances as of December 31:
Retained Earnings $18,700; Dividends $4,400; Sales $44,000; Cost of Goods Sold $17,600; Selling and Administrative Expenses $6,600; Interest Expense $3,300.
Prepare the closing entries for The Century Company. Close the temporary accounts straight to retained earnings.
The balance of $18,700 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after posting the closing entries?
Correct7.00 points out of 7.00 Flag question
Closing Entries In the midst of closing procedures, Claremont Corporation’s accountant became ill and was hospitalized. You have volunteered to complete the closing of the books, and you find that all revenue and expense accounts have zero balances. The Dividends account has a debit balance of $29,000. The Retained Earnings accounts has a beginning credit balance of $119,000. Expenses totaled $320,800 and revenues totaled $349,400.
Prepare journal entries to complete the closing procedures as of year-end directly to Retained Earnings.
After these entries are posted, what is the balance in the Retained Earnings account?
Preparing a Classified Balance Sheet The following financial data for the St. John Corporation was collected as of December 31, 2013. All accounts have normal balances.
Multi-step Income Statements The adjusted trial balance of Crane Distributors on December 31, 2013 is shown below.
Prepare a multi-step income statement for the year ended December 31, 2013. Combine all the operating expenses into one line on the income statement for selling, general and administrative expenses.
Preparing the Statement of Stockholders’ Equity Presented below is financial data for Likert & Co. as of year-end 2013:
Ratio Analysis The following balances were reported in the financial statements for Nafooz Company.
Prepare a statement of stockholders’ equity for Likert & Co. as of December 31, 2013