The principal is due to be repaid in 10 years

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The company borrowed $30,000 on September 1, 2013. The principal is due to be repaid in 10 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 10%.4.The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $500.5.Prepaid rent at year-end should be $1,000.Complete the worksheet below.Account TitleUnadjusted Trial BalanceAdjusting EntriesAdjusted Trial BalanceIncome StatementBalance SheetDr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Dr.Cr.Cash23,30023,30023,300Accounts receivable32,50032,50032,500
Supplies500500500Prepaid rent1,0001,0001,000Inventory65,00065,00065,000Equipment75,00075,00075,000Accumulated depreciation—equipment10,0009,37519,37519,375Accounts payable26,10026,10026,100Wages payable3,0001,5004,5004,500Note payable30,00030,00030,000Interest payable01,0001,0001,000Common stock80,00080,00080,000Retained earnings16,05016,05016,050Sales revenue180,000180,000180,000Cost of goods sold95,00095,00095,000Interest expense1,0001,0001,000Wage expense32,3501,50033,85033,850Rent expense14,0001,00013,00013,000Supplies expense2,0005001,5001,500Utility expense6,0006,0006,000Depreciation expense9,3759,3759,375159,725180,000197,300177,025Net income20,27520,275Totals345,150345,15013,375 13,375 357,025357,025180,000180,000197,300197,300Use the information in the worksheet to prepare an income statement for 2013.EXCALIBUR CORPORATIONIncome StatementFor the Year Ended December 31,2013

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