Reference no: EM131652463

Problem - The Able Company is a merchandising enterprise that uses the perpetual inventory system.  Account balances for the company as of March 31, 2017, the last day of the fiscal year, are as follows:

Cash                                                                     $28000

Accounts Receivable                                               132500

Merchandise Inventory                                            195000

Prepaid Insurance                                                   9700

Store Supplies                                                        4250

Office Supplies                                                        2100

Store Equipment                                                     157000

ACCUMULATED DEPRECIATION-

Store Equipment                                                     40300

Office Equipment                                                     50000

ACCUMULATED DEPRECIATION-

Office Equipment                                                     17200

Accounts Payable                                                     66700

Salaries Payable                                                      0

Unearned Rent                                                        1200

NOTES PAYABLE:

Due within 12 months                                              20000

Due beyond 12 months                                            85000

Andy Able, Capital                                                   224600

Andy Able, drawing                                                  30000

Sales                                                                      915000

Sales, returns and allowances                                   11900

Sales discounts                                                        7100

Cost of merchandise sold                                          576200

Sales salaries expense                                             76400

Advertising expense                                                 25000

DEPRECIATION EXPENSE-STORE

Equipment                                                               0

Store supplies expense                                             0

Miscellaneous Selling Expense                                  1600

Office Salaries Expense                                            34000

Rent Expense                                                          16000

Insurance Expense                                                  0

DEPRECAITION EXPENSE-OFFICE

Equipment                                                              0

Office Supplies Expense                                           0

Miscellaneous Admin Expense                                   1650

Rent Income                                                           0

Interest Expense                                                     11600

DATA needed for year-end adjustments follow:

Merchandise inventory on hand March 31                  189000

Insurance expired during the year                            5000

Supplies on hand March 31

supplies                                                                 1300

Office supplies                                                        750

Depreciation for the year:                                      

Equipment                                                             4500

Office Equipment                                                    2800

Salaries payable as of March 31:

Sales Salaries                                                        3850

Office Salaries                                                       1150

Unearned Rent as of March 31                                400

INSTRUCTIONS:

A. Prepare a work sheet for the year ended March 31, 2017.

B. Prepare a multiple step income statement for the year ended March 31, 2017.

C. Prepare a statement of owner's equity for the year ended March 31, 2017, assuming no additional investments by owner during the year.

D. Prepare a report form of balance sheet as of March 31, 2017, assuming that the current portion of notes payable is $20000.

E. Journalize adjusting entries.

F. Journalize closing entries.

G. Prepare a post-closing trial balance as of March 31, 2017.