Question

Prepare a retained earnings statement

Journalize all adjusting entries at november 30 needed on the books of the company At the end of the Hope Store's fiscal year on November 30, 2019, the following accounts appeared in its trial balance. Accounts payable Accumulated Depr.- Equip. Cash Cost of Goods Sold Dividends Equipment Freight-out Interest expense Interest revenue Inventory Miscellaneous expense Unadjusted 25,200 Notes payable 22,000 Notes receivable 25,212 Prepaid insurance 507,000 Rent expense 8,000 Retained earnings 154,300 Salaries and wages 6,500 expense 6.100 Sales commissions 7,964 expense 26,000 Sales returns and 452 allowances Sales revenue Share capital-ordinary Utilities expense Unadjusted 37,000 31,300 10,500 15,000 61,700 96,000 6,500 9.000 706,000 45,000 8,000 Other data: 1. Depreciation expense for the month: 11,000 2. Insurance expired for November 7,000 3. Property tax payable not yet recorded: 3,500 4. Sales commission payable not yet recorded: 7,000 5. Cash balance per bank, November 30:25, 121 6. November bank service charge not recorded by the depositor: 28 7. Deposits in transit, November 30. 1,500 8. Bank collected 800 note for the company in November, plus interest 36 less fee 20 The collection has not been recorded by the company and no interest has been accrued. 9. Outstanding checks, November 30: 621 10. Inventory on December 1, 2018: 20,000 11. From an internal audit it is known that for the inventory, the same person perform ordering items, receiving the items, and receiving the invoice. ed image text

Answer 1

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The Company
Income Statement	Amount $	Amount $
Sales Revenue	706,000.00
Less: Sales returns and allowances	45,000.00
Net Sales Revenue		661,000.00
Interest Revenue		26,000.00
Total Revenue		687,000.00
Less: Expenses
Cost of goods sold		8,000.00
Freight out		6,100.00
Interest Expense		7,964.00
Insurance Expense		7,000.00
Depreciation Expense		11,000.00
Rent Expense		15,000.00
Property Tax		3,500.00
Salaries and Wages		96,000.00
Sales Commission	9,000.00
Add: Not recorded	7,000.00	16,000.00
Utilities Expense		8,000.00
Total Expense		178,564.00
Net Income		482,436.00
Statement of Retained Earnings		Amount $
Retained Earnings- Opening Balance		61,700.00
Add: Net Income		482,436.00
Less: Dividends		15,400.00
Retained Earnings- Closing Balance		528,736.00