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Quiz 11 Answers

The document presents the financial statements of XYZ Merchants for the year ended December 31, 2023, including an unadjusted trial balance, income statement, balance sheet, and post-closing trial balance. Key figures include a net income of $6,700 and total assets of $21,500. Adjustments for depreciation, rent, and salaries were made to reflect accurate financial positions.

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7 views8 pages

Quiz 11 Answers

The document presents the financial statements of XYZ Merchants for the year ended December 31, 2023, including an unadjusted trial balance, income statement, balance sheet, and post-closing trial balance. Key figures include a net income of $6,700 and total assets of $21,500. Adjustments for depreciation, rent, and salaries were made to reflect accurate financial positions.

Uploaded by

t53926251
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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Requirement 1:

XYZ Merchants
Worksheet
For the year ended December 31, 2023
Unadjusted trial
balance Adjustments Income Statement Balance Sheet
Account title Debit Credit Debit Credit Debit Credit Debit
Cash 2,000 2,000
Accounts Receivable 3,000 3,000
Merchandise Inventory 7,000 7,000 5,000 5,000
Prepaid Rent 1,000 500 500
Equipment 17,000 17,000
Accumulated Depreciation 3,000 3,000
Accounts Payable 2,000
Salaries Payable 500 1,000
Owner's Capital 11,300
Sales 35,000 35,000
Sales returns and allowances 2,000 2,000
Purchases 15,000 15,000
Purchase discounts 1,000 1,000
Purchase returns 2,000 2,000
Freight-in 1,000 1,000
Salaries Expense 2,000 1,000 3,000
Freight out 3,000 3,000
Rent Expense 1,500 500 2,000
Utilities Expense 300 300
Adjustments:
Depreciation expense 3,000 3,000
Total 54,800 54,800 4,500 4,500 36,300 43,000 27,500
Net profit 6,700
Total 43,000 43,000 27,500

Adjusting entries:
1. Depreciation Expense 3,000 No reversing entries
Acc. Depreciation 3,000

2. Rent expense 500 No reversing entries


Prepaid rent 500

3. Salaries expense 1,000 Salaries payable


Salaries payable 1,000 Salaries expense

Requirement 2: Requirement 3
XYZ Merchants XYZ Merchants
Income Statement Statement of Changes in Equity
For the year ended December 31, 2023 For the year ended December 31, 2023

Sales 35,000 Casas, Capital-beginning


Less: Sales returns and allow. (2,000) Add:
Net Sales 33,000 Net income 6,700
Less: Casas, Drawing -
Cost of Goods Sold Casas, Capital-ending
Merchandise Inventory, beg 7,000
Add: Net Purchases
Purchases 15,000
Less: Purchase Returns (2,000) Closing Entries: (Nominal accounts)
Purchase discounts (1,000) Income and Expense summary account
Net purchases 12,000
Add: Freight in 1,000 13,000 1. Close all Income accounts.-I/E
Cost of Goods Available for Sale 20,000 2. Close all cost of goods sold accounts-I/E
Less: Merchandise Inventory, end (5,000) 15,000 3. Close all operating expense accounts. -I/E
Gross Profit 18,000 4. Close the Net income.- Capital
Less: Operating Expenses 5. Close the Drawings. - Capital
Salaries expense 3,000
Freight-out 3,000
Rent expense 2,000 1. Close all Income Accounts.
Utilties Expenses 300 Sales
Depreciation expense 3,000 11,300 Sales returns and allowances
Net income 6,700 Income and Expense Summary

2. Close of cost of good sold accounts.


Merchandise inventory, end
Purchase discounts
Purchase returns
Requirement 4 Income and expense summary
XYZ Merchants Purchases
Balance sheet Freight in
As of December 31, 2023 Merchandise inventory, beg
ASSETS
Cash 2,000 3. Close all operating expense accounts.
Accounts receivable 3,000 Income and expense summary
Merchandise Inventory 5,000 Salaries expense
Prepaid rent 500 Freight-out
Equipment 17,000 Rent expense
Accumulated Depreciation (6,000) 11,000 Utilties Expenses
Total Assets 21,500 Depreciation expense

LIABILITIES AND EQUITY 4. Close the net income/Income and expense summary.
Liabilities Income and expense summary
Accounts payable 2,000 Owners, Capital
Salaries payable 1,500
Total Liabilities 3,500
Equity 5. Close the drawings.
Casas, Capital 18,000 Capital
Drawings
Total Liabilities and Equity 21,500
XYZ Merchants
Post Closing Trial Balance
For the year ended December 31, 2023 A, L, Capital

alance Sheet Particulars Debit Credit


Credit Cash 2,000
Accounts Receivable 3,000
Merchandise Inventory 5,000
Prepaid Rent 500
Equipment 17,000
Accumulated Depreciation 6,000
6,000 Accounts Payable 2,000
2,000 Salaries Payable 1,500
1,500 Owner's Capital 18,000
11,300 Total 27,500 27,500

20,800
6,700
27,500

1,000
1000

n Equity
ber 31, 2023

11,300

6,700
18,000
ccount

ounts-I/E
ounts. -I/E

35,000
2,000
33,000

counts.
5,000
1,000
2,000
15,000
15,000
1,000
7,000

ccounts.
11,300
3,000
3,000
2,000
300
3,000

and expense summary.


6,700
6,700

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