Reference no: EM132952322
Singleton Sports Products, which uses the perpetual inventory system, has the following account balances (in alphabetical order) on August 31, 2020:
Accounts Payable $61,500
Accounts Receivable 64,700
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 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.