Bait and Tackle Shop Assignment | College Homework Help

The accounts and their balances in the ledger of Bait and Tackle Shop on December 31 are as follows: Problem 5-6A Preparation of work sheet, financial statements, and adjusting and closing entries Objective 4,5 ✓ I. Net profit: $174,350 $ 38,000 112,500 180,000 9,700 4,250 2,100 132,000 40,300 50,000 17,200 66,700 Cash Accounts Receivable Inventory, January ! Prepaid Insurance Store Supplies Office Supplies Store Equipment Accumulated Depreciation—Store Equipment Office Equipment Accumulated Depreciation – Office Equipment Accounts Payable Salaries Payable Unearned Rent Bank Loan J. Mah, Capital J. Mah, Drawing Sales Sales Returns and Allowances Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts Transportation in Sales Salaries Expense Advertising Expense Depreciation Expense-Store Equipment Store Supplies Expense Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Depreciation Expense-Office Equipment Office Supplies Expense Miscellaneous Administrative Expense Rent Revenue Interest Expense 1,200 105,000 154,600 40,000 915,000 11,900 7,100 540,000 10,100 4,900 6,200 71,400 25,000 1,600 44,000 26,000 $ 1,650 11,600 The data needed for year-end adjustments on December 31 are as follows: Inventory on December 31………. $196,000 Insurance expired during the year.. 5,400 Supplies on hand on December 31: Store supplies ……. 1,300 Office supplies …….. 750 Depreciation for the year: Store equipment.. 7,500 Office equipment ………. 3,800 Salaries payable on December 31: Sales salaries ……………. $3,850 Office salaries ……………….. 1,150 5,000 Unearned rent account balance on December 31 …….. 400 Instructions 1. Prepare a work sheet for the financial year ended December 31, listing all accounts in the order given. 2. Journalise the adjusting entries, 3. Prepare a statement of comprehensive income. 4. Prepare a statement of financial position, assuming that the current portion of the bank loan is $15,000. 5. Journalise the closing entries.