Reference no: EM132954508
Singleton Sports Products, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on August 31, 2020:
Accounts Receivable................................................................. 64,700
Accounts Payable...................................................................... $61,500
Accumulated Amortization-Equipment............................. 124,000 Cash............................................................................................. 14,400
C. Singleton, Capital................................................................. 305,100
C. Singleton, Withdrawals....................................................... 62,400
Cost of Goods Sold.................................................................... 789,900
Equipment............................. 336,000
Interest Earned.......................................................................... 2,600 Inventory.................................................................................... 248,400
Operating Expenses.................................................................. 541,200
Sales Discounts.......................................................................... 36,200
Sales Returns and Allowances................................................ 48,600
Sales Revenue............................................................................ 1,640,000 Supplies...................................................................................... 27,600
Unearned Sales Revenue.......................................................... 36,200
NOTE: For simplicity, all operating expenses have been summarized in the account Operating Expenses. Additional data at August 31, 2020:
- A physical count of items showed $14,200 of supplies were on hand. (Hint: Use the account Operating Expenses in the adjusting journal entry.)
- An inventory count showed inventory on hand at August 31, 2020, of $247,400.
- The equipment is expected to last five years and to have no value at the end of this time. (Hint: Use the account Operating Expenses in the adjusting journal entry.)
- Unearned sales of $9,600 were earned by August 31, 2020.
Required :
Problem 1: Record all adjusting and closing entries required on August 31, 2020.
Problem 2: Prepare the multi-step income statement and statement of owner's equity for the year ended August 31, 2020, and the classified balance sheet in report format as at August 31, 2020.