The unadjusted trial balance of Packer Corporation showed the following balances at the end of its first 12-month fiscal year ended August 31, 2016:
At the end of August, the following additional information is available:
|
a. |
The company’s insurance coverage is provided by a single comprehensive 12-month policy that began on March 1, 2016. |
|
b. |
Supplies on hand total $2,850. |
|
c. |
The building has an estimated useful life of 50 years . |
|
d. |
The furniture has an estimated useful life of ten years . |
|
e. |
The equipment has an estimated useful life of 20 years . |
|
f. |
Interest of $208 on the bank loan for the month of August will be paid on September 1, when the regular $350 payment is made. |
|
g. |
Unearned commission revenue is $450. |
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h. |
Unearned subscription revenue is $2,800. |
|
i. |
Salaries that have been earned by employees in August but are not due to be paid to them until the next payday (in September) amount to $325. |
|
j. |
Accrued interest from the short-term investments amounts to $50. |
|
k. |
An additional $1,000 of income taxes is payable. |
Required:
- Set up necessary general ledger T-accounts and record their unadjusted balances. Include general ledger account numbers.
- Prepare the adjusting entries. Include general ledger account numbers and applicable calculations. Descriptions are not needed.
- Post the adjusting entries to the general ledger T-accounts and calculate balances.
- Prepare an adjusted trial balance at August 31, 2016.
- Prepare an income statement, statement of changes in equity, and balance sheet.
- Prepare and post the closing entries, including descriptions.
- Prepare a post-closing trial balance.
- 1711 reads
