The following are the account balances in the ledger of Metcaffe Manufacturing Company compiled at the end of fiscal-year 6/31/2
020. Prepare the reports as required in A to D. below.
NOTES
A Prepare the unadjusted trial balance and determine the missing figure for Retained Earnings.
B
Using the above worksheet, record the necessary below adjustments
and process the balances up to Post closing trial balance.
1 Supplies still available at year-end is $2,300
2 Expired insurance for the year is $3,000
3 Annual depreciation expense on stores equipment is 12.5% of book value.
4 Annual depreciation expense on office equipment equipment is 10% of cost.
5 Four employees' wages accrued for 3 days work at the rate of $14/hr. each, working 8 hours a day.
6 Physical stock of inventory is $19,560, as at 3/31/2020.
C Prepare a multi-step income statement, in proper form, for period ended 3/31/2020.
Distribution of the following expenses between selling, and administration are as follows:
Salaries/wages 60:40; Insurance, telephone, and supplies 50:50;
Rent, vehicles maintenance, notes interest 70:30.
D
Prepare the classified Balance Sheet as at 3/31/2020.
Cash
$ 41,500
Accounts receivable
$ 28,700
Merchandise inventory
$ 21,930
Supplies
$ 11,800
Prepaid insurance
$ 3,600
Store equipment
$ 61,700
Accumulated Depr. - Stores equip.
$ 16,500
Office equipment
$ 39,550
Accumulated Depr. - Office equip.
$ 10,150
Accounts payable
$ 15,000
Salaries /wages payable
$ -
Common stock
$ 85,000
Retained earnings (Cr.)
?
Dividends paid
$ 17,500
Sales
$ 286,435
Sales discount
$ 4,108
Sales returns/allowances
$ 3,900
Cost of goods sold
$ 92,600
Depreciation expense-Stores equip
$ -
Depreciation expense-Office equip
$ -
Sales commission expense
$ 31,000
Salaries /wages expense
$ 49,700
Insurance expense
$ 1,200
Inventory shrinkage
$ -
Rent expense
$ 24,000
Supplies expense.
$ 7,200
Telephone, fax expenses
$ 1,960
Advertising exp
$ 8,100
Vehicle maintenance/running cost
$ 9,500
Net Income(Loss)
