a) Prepare the necessary adjusting journal entries on June 30, 2020. а) [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending June 30, 2020. ) Using the Adjusted trial balance, generate the statements requested by MNB, i.e. A Multiple-step income statement & a Statement of owner's equity for the year ended June 30, 2020 d) A Classified balance sheet, in report format, at June 30, 2020.
a) Prepare the necessary adjusting journal entries on June 30, 2020. а) [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending June 30, 2020. ) Using the Adjusted trial balance, generate the statements requested by MNB, i.e. A Multiple-step income statement & a Statement of owner's equity for the year ended June 30, 2020 d) A Classified balance sheet, in report format, at June 30, 2020.
a) Prepare the necessary adjusting journal entries on June 30, 2020. а) [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending June 30, 2020. ) Using the Adjusted trial balance, generate the statements requested by MNB, i.e. A Multiple-step income statement & a Statement of owner's equity for the year ended June 30, 2020 d) A Classified balance sheet, in report format, at June 30, 2020.
Ready Hospital Supplies (RHS) trades in the buying and selling of supplies primarily targeting private medical practitioners. During the Covid-19 pandemic, the business hasn't experienced a rapid increase in demand and RHS is faced with need for additional financing. you are the accounting associate suppprting the credit request to millennial national bank (MNB) the corporate banking head at MNB is requesting a full set of financial statements to ensure that granting the loan will be financially feasible during a peri When many similar businesses are facing delinquency and foreclosures. Your head of finance has furnished you with the latest trial balance for RHS, along with other information relevant to the year under review and you are tasked to prepare the documents requested by MNB. Below is the trial balance extracted from the books on June 30. The end of the companies financial year.
the accrual method is required for financial statements
Transcribed Image Text:Ready Hospital Supplies
Trial Balance as at June 30, 2020
Dr $
Cr $
Cash
127,000
Accounts Receivable
151,000
Allowance for Bad-Debts
Merchandise Inventory
Store Supplies
Prepaid Insurance
Prepaid Rent
Furniture & Fixtures
Accumulated Depreciation: Furniture & Fixtures
|Computer Equipment
Accumulated Depreciation: Computer Equipment
Accounts Payable
Salaries Payable
Interest Payable
Unearned Sales Revenue
12,500
187,500
58,000
72,000
56,000
800,000
256,000
450,000
133,500
27,000
82,000
Long-Term Loan
Eva Ready, Capital
Eva Ready, Withdrawals
Sales Revenue
Sales Discount
Sales Returns & Allowances
360,000
898,500
104,000
1,043,000
7,000
5,500
Cost of Goods Sold
403,000
Salaries Expense
Insurance Expense
Utilities Expense
Rent Expense
Depreciation Expense – Furniture & Fixtures
Depreciation Expense – Computer Equipment
Store Supplies Expense
Gain on Disposal of Old Computer Equipment
Bad-Debt Expense
Interest Expense
165,000
87,500
126,000
14,000
27,000
2,826,500 2,826,500
Total
The following additional information is available at
June 30, 2020:
(1) Store Supplies on hand at June 30, 2020 amounted to $25,000.
(ii) Insurance of $72,000 was paid on May 1, 2020 for the 6-
months to October 31, 2020
(ii) Rent was paid on March 31, 2020 for the 4-months to July
31, 2020.
Transcribed Image Text:(iii) Rent was paid on March 31, 2020 for the 4-months to July
31, 2020.
(iv) The furniture and fixtures have an estimated useful life of 10
years and is being
down to a residual value of $160,000.
depreciated on the straight-line method
(v) The computer equipment was acquired on March 31, 2020 and
is being depreciated
over 5 years on the double-declining balance method of
depreciation, down to
a residue of $30,000
(vi) Salaries earned by employees not yet paid amounted to
$14,000 at June 30, 2020.
(vii) Accrued interest expense as of June 30, 2020, $9,000.
(vii) At June 30, 2020, $48,000 of the previously unearned sales
revenue had been earned
(ix) The aging of the Accounts Receivable schedule at June 30,
2020 indicated that the
Allowance for Bad Debts should be $19,500
(x) After making all other adjustments, a physical count of
inventory was done, which
reveals that there was $186,000 worth of inventory on
hand at June 30,2020
Other data:
The business is expected to make principal payments
(xi)
totalling $90,000 towards the
loan during the fiscal year to June 30 ,2021
Required:
a) Prepare the necessary adjusting journal entries on
June 30, 2020.
[Narrations are
not
required]
b) Prepare the Adjusted Trial balance for the period
ending June 30, 2020.
e) Using the Adjusted trial balance, generate the
statements requested by MNB, i.e.
A Multiple-step income statement & a Statement
of owner's equity for the year ended June 30,
2020
d) A Classified balance sheet, in report format, at
June 30, 2020.
Assignment Reebrie
Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.
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![(iii) Rent was paid on March 31, 2020 for the 4-months to July
31, 2020.
(iv) The furniture and fixtures have an estimated useful life of 10
years and is being
down to a residual value of $160,000.
depreciated on the straight-line method
(v) The computer equipment was acquired on March 31, 2020 and
is being depreciated
over 5 years on the double-declining balance method of
depreciation, down to
a residue of $30,000
(vi) Salaries earned by employees not yet paid amounted to
$14,000 at June 30, 2020.
(vii) Accrued interest expense as of June 30, 2020, $9,000.
(vii) At June 30, 2020, $48,000 of the previously unearned sales
revenue had been earned
(ix) The aging of the Accounts Receivable schedule at June 30,
2020 indicated that the
Allowance for Bad Debts should be $19,500
(x) After making all other adjustments, a physical count of
inventory was done, which
reveals that there was $186,000 worth of inventory on
hand at June 30,2020
Other data:
The business is expected to make principal payments
(xi)
totalling $90,000 towards the
loan during the fiscal year to June 30 ,2021
Required:
a) Prepare the necessary adjusting journal entries on
June 30, 2020.
[Narrations are
not
required]
b) Prepare the Adjusted Trial balance for the period
ending June 30, 2020.
e) Using the Adjusted trial balance, generate the
statements requested by MNB, i.e.
A Multiple-step income statement & a Statement
of owner's equity for the year ended June 30,
2020
d) A Classified balance sheet, in report format, at
June 30, 2020.
Assignment Reebrie](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1156176b-12b4-47e3-a392-25418b6d8ae5%2F520ef8ff-f14f-46f6-98f8-2f76b40e8ea0%2Fj76wozq_processed.png&w=3840&q=75)
