Reference no: EM133046892

Question - 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 -

1. Record all adjusting and closing entries required on August 31, 2020.

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.