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Activity 3

The adjusted trial balance of ABC Trading showed account balances as of December 31, 2022. To prepare the financial statements, merchandise inventory at year-end is 46,000. The income statement and statement of financial position will be prepared using the account balances and additional information provided.

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John Michael Gaoiran Gajotan
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75 views1 page

Activity 3

The adjusted trial balance of ABC Trading showed account balances as of December 31, 2022. To prepare the financial statements, merchandise inventory at year-end is 46,000. The income statement and statement of financial position will be prepared using the account balances and additional information provided.

Uploaded by

John Michael Gaoiran Gajotan
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Financial Statement Preparation

Activity 3: The Adjusted Trial Balance of ABC Trading showed the following balances on December 31, 2022:
ABC Trading
Adjusted Trial Balance
December 31, 2022
Accounts Payable 76,980.00
Accounts Receivable 98,900.00
Accrued Interest Income 12,500.00
Accrued Maintenance Expense 9,970.00
Accumulated Depreciation-Building 135,000.00
Accumulated Depreciation-Machinery 102,500.00
Allowance for Bad Debts 10,500.00
Bad Debts Expense 8,300.00
Building 450,000.00
Cash 98,900.00
Depreciation Expense 67,500.00
Freight in 11,900.00
Freight Out 8,760.00
Insurance Expense 19,800.00
Interest Income 26,600.00
Maintenance Expense 32,600.00
Merchandise Inventory, Beginning 38,600.00
Notes Payable, due on May 1, 2024 200,000.00
Notes Receivable, due on December 31, 2023 125,000.00
Machinery 225,000.00
Office Supplies 13,600.00
Office Supplies Expense 36,870.00
Ben, Capital ???
Ben, Drawing 60,000.00
Prepaid Insurance 25,000.00
Purchase Discount 5,560.00
Purchase Ret and Allowances 7,580.00
Purchases 356,700.00
Rent Expense 36,000.00
Salaries Expense 67,660.00
Sales 770,910.00
Sales Discount 2,330.00
Sales Ret and Allowances 6,120.00
Utilities Expense 43,560.00
1,845,600.00 1,845,600.00

Merchandise Inventory at the end of the year amounted to 46,000. Prepare the income statement and the statement
of financial position.

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