A/C NameSapphire Gems and Minerals Co Ltd - Kunzite DivisionTrial Balance as of December 31, 2022Trial BalanceCashAccounts receivableAllowance for bad debtOther debtorsMerchandise InventoryStore SuppliesPrepaid InsurancePrepaid rentFurniture & EquipmentAccumulated deprecation-Furniture and equipmentMotor TruckAccumulated depreciation- Motor TruckAccounts payableSalary payableInterest payableUnearned Sales revenueNote Payable, long termCapitalWithdrawalsSales revenueSales discountSales returns and allowancesCost of goods soldSalaries expenseInsurance ExpenseUtilities ExpenseRent ExpenseDepreciation Expense - Furniture and EquipmentDepreciation Expense - Motor truckStore Supplies ExpenseGain/loss on Disposal of Fixed AssetBad-Debt ExpenseInterest ExpenseDR3,000,0006,500,00010,000,0002,000,0004,800,0004,200,00010,000,0004,000,000150,0001,350,0001,350,00011,500,00012,900,0001,400,0004,200,000CR650,0003,960,0002,951,4241,650,0502,800,0004,500,00016,875,043,963,52677,350,000 77,350,000 The following additional information is available December 31, 2022:1) Store Supplies on hand on December 31, 2022, amounted to $800,000.2) Insurance of $4,800,000 was paid on January 1, 2022, for the 15-months to March 31, 20233) Prepaid rent expired December 31, 2022, amounted to $3,000,000.4) The furniture and equipment have an estimated useful life of 10 years and is being depreciatedon the straight-line method down to a residual value of $100,000.5) The motor truck cost relates to two Livi Trucks purchased for $2,000,000 each by the companyon January 1, 2016. The double-declining balance method of depreciation is used to compute thetruck's depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2016,10,000 miles were driven, 16,500 in 2017, 12,600 in 2018, 16,000 in 2019, 16,500 in 2020, 14,800in 2021 and 16,800 in 2022. The residual value on both truck is $419,430 each. On September 1,2022, the company sold one of the trucks to Daley Company for $600,000 on credit. Round offanswers to the nearest dollar.6)Salaries earned by employees and not yet paid amounted to $80,000 on Dec 31, 2022.7) Accrued interest expense as of December 31, 2022, $80,000.8) On Dec 31, 2022, $2,600,000 of the previously unearned sales revenue had been earned.9) The aging of the Accounts Receivable schedule on Dec 31, 2022, indicated that the Allowancefor Bad Debts should be $950,000.10) A physical count of inventory was done on December 31, 2022, after making all the otheradjustments and this revealed that there was $3,700,000 worth of inventory on hand at thispoint.Other data:11) The business is expected to make principal payments totalling $400,000 towards the loan duringthe fiscal year to October 31,2023Required:a) Prepare the necessary adjusting journal entries on Dec 31, 2022. [Narrations are not required]b) Prepare the Adjusted Trial balance for the period ending December 31, 2022.c) Prepare the following financial statements for the division:■A Multiple-step income statement & a Statement of owner's equity for the year endedDecember 31, 2022A Classified balance sheet, in report format, at December 31, 2022.

Financial Statement includes an Income Statement, Statement of Owner's Equity and Balance Sheet..The…

A/C Name Sapphire Gems and Minerals Co Ltd - Kunzite Division Trial Balance as of December 31, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Other debtors Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture & Equipment Accumulated deprecation-Furniture and equipment Motor Truck Accumulated depreciation- Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Note Payable, long term Capital Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture and Equipment Depreciation Expense - Motor truck Store Supplies Expense Gain/loss on Disposal of Fixed Asset Bad-Debt Expense Interest Expense DR 3,000,000 6,500,000 10,000,000 2,000,000 4,800,000 4,200,000 10,000,000 4,000,000 150,000 1,350,000 1,350,000 11,500,000 12,900,000 1,400,000 4,200,000 CR 650,000 3,960,000 2,951,424 1,650,050 2,800,000 4,500,000 16,875,000 43,963,526 77,350,000 77,350,000

A/C Name Sapphire Gems and Minerals Co Ltd - Kunzite Division Trial Balance as of December 31, 2022 Trial Balance Cash Accounts receivable Allowance for bad debt Other debtors Merchandise Inventory Store Supplies Prepaid Insurance Prepaid rent Furniture & Equipment Accumulated deprecation-Furniture and equipment Motor Truck Accumulated depreciation- Motor Truck Accounts payable Salary payable Interest payable Unearned Sales revenue Note Payable, long term Capital Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense Rent Expense Depreciation Expense - Furniture and Equipment Depreciation Expense - Motor truck Store Supplies Expense Gain/loss on Disposal of Fixed Asset Bad-Debt Expense Interest Expense DR 3,000,000 6,500,000 10,000,000 2,000,000 4,800,000 4,200,000 10,000,000 4,000,000 150,000 1,350,000 1,350,000 11,500,000 12,900,000 1,400,000 4,200,000 CR 650,000 3,960,000 2,951,424 1,650,050 2,800,000 4,500,000 16,875,000 43,963,526 77,350,000 77,350,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Comprehensive Problem The following were taken from the books of Amihan Company: Long-term Payable Notes Payable Property. Plant and Equipment Accounts Receivable Accounts Payable Accumulated Depreciation Cash Owner's Capital Unearned Income Notes Receivable Prepaid Expenses Accrued Expenses Inventory Intangible Assets P 500,000 120.000 750,000 56.000 65,000 100,000 77,000 c. Prepaid Expenses is current. d. Date of SFP, December 31, 2020 ? 15.345 244.000 56.700 37,890 157,840 124,500 OUTPUT 1 Prepare a classified SFP given the following additional information: (ACCOUNT FORM) SFP a. Notes Payable is due 6 months from now. b. Notes Receivable is collectible 9 months from now.
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