Account balances taken from the ledger of Builders’ Supply Corporation on December 31, 2015, before adjustment, follow information relating to adjustments on December 31, 2015: (a) Allowance for Bad Debts

Account balances taken from the ledger of Builders’ Supply Corporation on December 31, 2015, before adjustment, follow information relating to adjustments on December 31, 2015: (a) Allowance for Bad Debts is to be increased to a balance of $3,000. (b) Buildings are depreciated at the rate of 5% per year. (c) Accrued selling expenses are $3,840. (d) There are supplies of $780 on hand. (e) Prepaid insurance relating to 2016 totals $720. (f) Accrued interest on long-term investments is $240. (g) Accrued real estate and payroll taxes are $900. (h) Accrued interest on the mortgage is $480. (i) Income taxes are estimated to be 20% of the income before income taxes. Cash     $24,000                                   Dividends            $13,400 Accounts Receivable 72,000              Sales                   246,000 Allowances for Bad debts 1,380        Sales Returns       4,360 Inventory    87,570                              Sales Discounts   5,400 Long term -Investments    15,400       Costs of Goods sold  114,370 Land          69,600                               Selling Expenses 49,440 Bulidings     72,000                              Office Expenses 21,680 Accumulated Depreciation-Buildings 19,800  Insurance Expense 1,440 Accounts Payable 35,000                   Supplies Expense   5,200 Mortgage Payable  68,800              Taxes-Real Estate and Payroll 7,980 Capial Stock $10par  180,000           Interest Revenue 660 Retained Earning, December 31,2014 14,840    Interest Expense 2,640 INSTRUCTIONS: Prepare a trial balance. Journalize the adjustments. Journalize the closing entries. Prepare a post-closing trial balance. ( Note: Although not required, the use of a spreadsheet is recommended for the solution of this problem.)

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