Retained earnings 20275 Excalibur Corporation manufactures and sells video

Retained earnings 20275 excalibur corporation

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20,275Excalibur Corporation manufactures and sells video games for personal computers. The unadjusted trial balance as of December 31, 2013, appears below. December 31 is the company’s fiscal year-end. The company uses the perpetual inventory system.Account TitleDebitsCreditsCash23,300 Accounts receivable32,500 Supplies0 Prepaid rent0 Inventory65,000 Equipment75,000 Accumulated depreciation—equipment10,000 Accounts payable26,100 Wages payable3,000 Note payable30,000 Common stock80,000 Retained earnings16,050 Sales revenue180,000 Cost of goods sold95,000 Interest expense0 Wage expense32,350 Rent expense14,000 Supplies expense2,000 Utility expense6,000 Totals345,150 345,150 Cash dividends paid to shareholders during the year amounted to $6,000.Information necessary to prepare the year-end adjusting entries appears below.1.The equipment was purchased in 2011 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value.2.Accrued wages at year-end should be $4,500.3.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. Page 4 of 6 Assignment Print View 5/20/2015 ...
Account Title Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Bala Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cash 23,300 23,300 23,30 Accounts receivable 32,500 32,500 32,50 Supplies 500 500 50 Prepaid rent 1,000 1,000 1,00 Inventory 65,000 65,000 65,00 Equipment 75,000 75,000 75,00 Accumulated depreciation—equipment 10,000 9,375 19,375 Accounts payable 26,100 26,100 Wages payable 3,000 1,500 4,500 Note payable 30,000 30,000 Interest payable 0 1,000 1,000 Common stock 80,000 80,000 Retained earnings 16,050 16,050 Sales revenue 180,000 180,000 180,000 Cost of goods sold 95,000 95,000 95,000 Interest expense 1,000 1,000 1,000 Wage expense 32,350 1,500 33,850 33,850 Rent expense 14,000 1,000 13,000 13,000 Supplies expense 2,000 500 1,500 1,500 Utility expense 6,000 6,000 6,000 Depreciation expense 9,375 9,375 9,375 159,725 180,000 197,30 Net income 20,275 Totals 345,150 345,150 13,375 13,375 357,025 357,025 180,000 180,000 197,30

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