Computing trial balance amounts into the t-accounts

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Reference no: EM131827080

Question: The trial balance of People's Choice Wholesale Company contained the following accounts shown at December 31, the end of the company's fiscal year

Adjustment data: 1. Depreciation is $8,000 on buildings and $7,000 on equipment. (Both are operating expenses.)

2. Interest of $4,500 is due and unpaid on notes payable at December 31.

3. Income tax due and unpaid at December 31 is $24,000. Other data: $15,000 of the notes payable are payable next year. Instructions

(a) Journalize the adjusting entries.

(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.

(d) Prepare a multiple-step income statement and a retained earnings statement for the year, and a classified balance sheet at December 31, 2017.

Reference no: EM131827080

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