Problem: The trial balance of the Mario Company was prepared from the record of the company on November 30, 20X2, the close of its fiscal year.
Mario Company
Trial Balance
November 30, 20X2
| Cash |
|
|
$12,200 |
|
|
| Accounts Receivable |
|
16,300 |
|
|
| Allowance for Doubtful Accounts |
|
|
|
|
$200 |
| Inventory-12/1/X1 |
|
|
|
14,175 |
|
|
| Unexpired Insurance |
|
|
|
660 |
|
|
| Supplies on Hand |
|
|
|
265 |
|
|
| Land |
|
|
|
|
18,000 |
|
|
| Building |
|
|
|
|
22,000 |
|
|
| Accumulated Depreciation-Building |
|
|
|
6,000 |
| Office Equipment |
|
|
|
6,800 |
|
|
| Accumulated Depreciation-Office Equipment |
|
|
2,100 |
| Accounts Payable |
|
|
|
|
|
11,400 |
| Mortgage Payable |
|
|
|
|
|
9,000 |
| Capital Stock |
|
|
|
|
|
40,000 |
| Retained Earnings |
|
|
|
|
|
2,200 |
| Dividends |
|
|
|
|
8,000 |
|
|
| Sales |
|
|
|
|
|
|
172,000 |
| Sales Returns and Allowances |
|
|
600 |
|
|
| Sales Discounts |
|
|
|
2,700 |
|
|
| Purchases |
|
|
|
109,800 |
|
|
| Purchase Returns and Allowances |
|
|
|
1,200 |
| Purchase Discounts |
|
|
|
|
|
2,300 |
| Transportation-In |
|
|
|
900 |
|
|
| Salaries Expense |
|
|
|
23,000 |
|
|
| Travel Expense |
|
|
|
5,200 |
|
|
| Office Expense |
|
|
|
1,300 |
|
|
| Professional Fee Expense |
|
|
2,500 |
|
|
| Telephone Expense |
|
|
|
1,200 |
|
|
| Building Repair Expense |
|
|
800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$246,400 |
|
$246,400 |
Additional data:
a. The Allowance for Doubtful Accounts should be increased by $400.
b. Merchandise Inventory at November 30, 20X2, was $16,200.
c. Unexpired Insurance on November 30, 20X2, amounted to $440.
d. Supplies on Hand November 30, 20X2, $120.
e. Building depreciation is calculated at 5% per year.
f. Office depreciation is calculated at 10% per year.
g. Salaries accrued at November 30, 20X2, are $400.
REQUIRED:
1. Prepare a work sheet. (The adjusted trial balance columns are to be omitted.)
2. Prepare an income statement for the year.
3. Prepare closing entries