The adjusted trial balance for China Tea Company at December 31,2013, is presented below:
Debit
Credit
Cash
10,500
Accounts receivable
150,000
Prepaid rent
5,000
Inventory
25,000
Equipment
300,000
Accumulated depreciation-equipment
125,000
Accounts payable
30,000
Notes payable-due in three months
30,000
Salaries payable
4,000
Interest payable
1,000
Capital stock
200,000
Retained earnings
50,000
Sales Revenue
400,000
Cost of goods sold
180,000
Salaries expense
120,000
Rent expense
15,000
Depreciation expense
30,000
Interest expense
2,000
Advertising expense
2,500
Totals
840,000
840,000
Prepare the closing entries for China Tea Company for the yearended December 31, 2013.
The adjusted trial balance for China Tea Company at December 31,2013, is presented below:
Debit | Credit | |
Cash | 10,500 | |
Accounts receivable | 150,000 | |
Prepaid rent | 5,000 | |
Inventory | 25,000 | |
Equipment | 300,000 | |
Accumulated depreciation-equipment | 125,000 | |
Accounts payable | 30,000 | |
Notes payable-due in three months | 30,000 | |
Salaries payable | 4,000 | |
Interest payable | 1,000 | |
Capital stock | 200,000 | |
Retained earnings | 50,000 | |
Sales Revenue | 400,000 | |
Cost of goods sold | 180,000 | |
Salaries expense | 120,000 | |
Rent expense | 15,000 | |
Depreciation expense | 30,000 | |
Interest expense | 2,000 | |
Advertising expense | 2,500 | |
Totals | 840,000 | 840,000 |
| Prepare the closing entries for China Tea Company for the yearended December 31, 2013. |
Related questions
Part A
The December 31, 2016 (pre-closing) adjusted trial balance forSunshine Enterprises was as follows:
Account Title | Debits | Credits |
Accounts payable | 90,000 | |
Accounts receivable | 170,000 | |
Accumulated depreciation รขยย equipment | 260,000 | |
Capital stock | 490,000 | |
Cash | 26,000 | |
Cost of goods sold | 480,000 | |
Depreciation expense | 60,000 | |
Equipment | 700,000 | |
Interest expense | 4,000 | |
Inventory | 150,000 | |
Note payable (due in six months) | 60,000 | |
Rent expense | 30,000 | |
Retained earnings | 62,000 | |
Salaries and wages payable | 8,000 | |
Sales revenue | 770,000 | |
Salaries expense | 120,000 | |
TOTALS | 1,740,000 | 1,740,000 |
Calculate the following:
1. Net income (loss)
2. Total current assets
3. Total current liabilities
4. Total shareholders' equity
NOTE: it is not necessary to prepare completefinancial statements for Part A.
| Beyond Sea | |||||||
| Adjusted Trial Balance | |||||||
| December 31, 2015 | |||||||
| Debit | Credit | ||||||
| Cash | 30,500 | ||||||
| Short-term Investments | 32,200 | ||||||
| Accounts Receivable | 244,500 | ||||||
| Supplies | 11,500 | ||||||
| Prepaid Rent | 4,000 | ||||||
| Prepaid Insurance | 2,700 | ||||||
| Notes Receivable (due in 3 yrs.) | 30,000 | ||||||
| Office Equipment | 32,000 | ||||||
| Accumulated Depreciation | 5,500 | ||||||
| Delivery Equipment | 45,000 | ||||||
| Accumulated Depreciation | 12,200 | ||||||
| Office Building | 475,000 | ||||||
| Accumulated Depreciation | 130,000 | ||||||
| Trademarks | 8,700 | ||||||
| Accounts Payable | 57,600 | ||||||
| Notes Payable (due within 1year) | 25,000 | ||||||
| Notes Payable (due in 5years) | 125,000 | ||||||
| Deferred Revenue | 10,300 | ||||||
| Common Stock | 20,000 | ||||||
| Retained Earnings | 57,500 | ||||||
| Service Revenue | 805,200 | ||||||
| Salaries | 180,400 | ||||||
| Insurance Expense | 13,000 | ||||||
| Depreciation | 22,000 | ||||||
| Rent Expense | 74,300 | ||||||
| Supplies Expense | 3,500 | ||||||
| Utilities Expense | 2,900 | ||||||
| Fringe Benefit Expense | 56,500 | ||||||
| Gain on Sale of Investments | 25,300 | ||||||
| Interest Expense | 4,900 | ||||||
| $1,273,600 | $1,273,600 | ||||||
| ` | |||||||
| REQUIRED: | |||||||
| Prepare in good form, aclassified balance sheet at December 31, 2015. | |||||||
| ( You will have to compute theRetained Earnings at December 31.\) | |||||||
