Closing entries and statement of retained earnings

Assignment Help Financial Accounting

Reference no: EM1314235

Preparation of closing entries and statement of retained earnings.

The adjusted trial balance for China Tea Company at December 31, 2009 is presented below:

	Debit	Credit
Cash	110,500
Accounts receivable	40,000
Supplies	5,000
Inventory	25,000
Equipment	300,000
Accumulated depreciation - equipment		125,000
Accounts payable		25,000
Notes payable		30,000
Unearned revenue		4,000
Interest payable		1,000
Capital stock		200,000
Retained Earnings		50,000
Dividends	5,000
Service revenue		400,000
Cost of Goods Sold	180,000
Wage expense	120,000
Depreciation expense	30,000
Rent expense	15,000
Supplies Expense	2,500
Interest expense	2,000	_______
Totals	835,000	835,000

a. Prepare the closing entries for China Tea Company for the year ended December 31, 2009 in proper format (omit explanations). Leave a space between each entry.

b. Prepare a Statement of Retained Earnings for the year ended December 31, 2009 in proper format.

Reference no: EM1314235

Questions Cloud

Describe questions on capital budgeting decisions : Describe questions on capital budgeting decisions and explain If salvage value is ignored in depreciating an asset for tax purposes, any sales proceeds received at the end of the life of the asset are fully taxable as income.

Identify and describe the deficiencies in the balance sheet : Identify and describe the deficiencies in the balance sheet prepared by the company's accountant. Include in your answer items that need additional disclosure, either on the face of the statement or in a note. Your answer to this question may be p..

Explain questions on investments and transfer pricing : Explain questions on investments and transfer pricing and capital budgeting and One criticism of the payback method is that it ignores cash flows that occur after the payback point has been reached

Preparation of multi-step income statement : Preparation of Multi-step Income statement - Using the information provided, prepare a multi-step income statement for the year ended December 31, 2009 in proper format including earnings per share disclosure.

Closing entries and statement of retained earnings : Preparation of closing entries and statement of retained earnings - Prepare a Statement of Retained Earnings for the year ended December 31, 2009 in proper format.

Preparation of income statement and balance sheet : Preparation of Income statement and Balance Sheet and Financial Data for 2008 Based on an aging of the accounts receivable, it was determined that the allowance for bad debts at 12/31/08 should be $1,100.

Computation of net present value and return on investment : Computation of net present value and return on investment and Create a template like the attachment or use the template however just remember to use the numbers given in the assignment

Evaluate internal rate of return method : In the payback method, depreciation is added back to net operating income when computing the net annual cash flows and net present value method and the internal rate of return method can be used as a screening tool in capital budgeting decisions.

Transformation of exponential model functions : Solving the transformation of exponential model functions.

User Account

All Pages