-Prepare adjusting entries.
- Prepare adjusted trial balance.- Prepare Income Statement, Retained Earnings Statement, Balance Sheet, and Statement of Cash Flows.- Prepare Closing Entries
1. Depreciation expense for the year was $14,250
2.The company estimated that it has to pay federal income tax, $3,250.
3. After physically counting, the company expenses all of the supplies purchased during the year.
4.Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales.
5. Unearned Revenues is decreased by $10,000
6. Then company expenses all of the supplies purchased during the year.
7. No insurance policy is effective during the year.
8.The company used the gross method to record its purchases and sales on credit.
9. The company adopts the periodic inventory system.