Reference no: EM132469353
1. The list of accounts below and the unadjusted balances of these accounts were take from the ledger of the Manville Corporation at the end of their accounting period, March 31, 20X2:
|
Cash
Accounts Receivable
|
$ 3,995
13,240
|
|
|
Allowance for Doubtful Accounts
|
|
120
|
|
Inventory-April 1, 20X1
|
22,800
|
|
|
Prepaid Insurance
|
360
|
|
|
Supplies on Hand
|
520
|
|
|
Equipment
|
15,000
|
|
|
Accumulated Depreciation-Equipment
|
|
4,500
|
|
Accounts Payable
|
|
11,870
|
|
Taxes Payable
|
|
390
|
|
Capital Stock
|
|
25,000
|
|
Retained Earnings
|
|
11,920
|
|
Dividends
|
9,000
|
|
|
Sales
|
|
89,490
|
|
Sales Returns and Allowances
|
920
|
|
|
Sales Discounts
|
1,330
|
|
|
Purchases
|
56,320
|
|
|
Purchase Returns and Allowances
|
|
490
|
|
Purchase Discounts
|
|
1,125
|
|
Transportation-In
|
880
|
|
|
Sales Salaries
|
11,800
|
|
|
Rent Expense
|
3,600
|
|
|
Advertising Expense
|
2,700
|
|
|
Utilities Expense
|
1,880
|
|
|
Maintenance Expense
|
560
|
|
Additional data:
a. Merchandise inventory at March 31, 20X2, was $23,300.
b. The Allowance for Doubtful Accounts should be Increased by $600.
c. Prepaid Insurance represents a three-year policy purchased April 1, 20X1.
d. Supplies on hand were estimated to be $170 on March 31, 20X2.
e. The cost of the equipment Is being depreciated over a 15-year estimated life using the straight-line method. Salvage value should be ignored.
f. Unpaid sales salaries on March 31, 20X2, amounted to $200.
REQUIRED:
Question 1. Prepare a work sheet. (Adjusted trial balance columns may be omitted.)
Question 2. Prepare an income statement.
Question 3. Prepare a statement of retained earnings.
Question 4. Prepare a balance sheet.
Question 5. Prepare the closing entries.