Question

ACR10 Morgan Fashions' statement of financial position at December 31, 2019, is presented below. Morgan Fashions Statement of Financial Position December 31, 2019 40,750 13.750 Equipment Share Capital Ordinary 38,000 30,750 Accounts Payable 6,000 Interest Payable 30,000 Notes Payable (long-term) 50.000 Inventory 250 Prepaid Insurance Cash 104.750 104.750

Answer 1

Please hit LIKE button If thls helped. For any further explanatlon, please put your query In comment, wll get back to you. Adjusted Trial Balance Beginning For January Debit Debit Debit Credit Debit Interest Payable 0,000 221,350 5 30,750 3,900 5 25,850 To record payment of Interest) ,500 Prepald Insurance Fquipment 261,100 5,850 To record purchose of inventory Interest Payahle 50.000 $50,000 468,600 Salaries and wages payable Sales Tax Payable 46,510 46,510 440,000 $28,600 5 11,600 Sales Revenue 11,600 9,180 Social Security Tax Payable 9,180 To record sale! Witholding Incoe Tax Payable Share Capital $440,0co Cost af Good Sold Snlrs Rrwenur Co uf Goods Sold 440,000 5265,000 5265,000 5 255,000 To record cost of goods soid) Salarles and WaRes Expense 5 60,000 5 ,000 230,000 Insurance Expense 500 500 5230,000 Operating Expense Payroll Tax Expense 5 30,000 5 30,000 To record payment Interest Expense 250 5ales Tax Payable 17,000 104,750 $ 104,750$ 552,290 $ 552,290 652,640$652,640 To reod payment of Salrs rox) 30,0UO Operatina txpense 30,000 Income Statement Balance Sheet To record payrnent ofoperating expense Sales Revenue 5440,000 $ 221,350 S26,a50 Salaries and Wazes Expense Cost of Gaads Sold S265.000 Social Security Tax Payable Inventary 5175.000 Prepaid Insurance 5,500 5 46,510 253,700 Salarles and wafes payable Total Current Assets Less: Operating Expense Salaries and Wages Fxprnse To rcond salaisxpense) Fquipment -600 37.400o Deprecisliun Experise Adlustine Total Assets Insurance Expense 291,100 30,000 $4,590 $44,850 5-95,590 79,310 Interest Payable 250 $ 50,oo Interest Expense Note Salries and wages payable Sales Tax Payable Interest Payable Interest Expense To record interest expense accruedy 579,060 511,500 Net Income Soclal Security Tax Payable Retained Earning Statement: Withnlding Inroms Tax Payablr Prepaid Insurane Talal Liabiliis $171,290 fio record Insuronce exensel 56,000/12 BeaInning Hetalned tamina Stockholder's eauity 79,060 Add: Net Income Less: Dividernd Depreciatian Experise Retaine: Earning $79,060 Ending Retained Earnin 579,060 Total Stockholder's E 5119,810 Accumulated Depreciation To record depreciation expense) (S38,000 52,000/60 Months $291,100 Total Liabilities and Equity Payroll Tax E Social Security Tax Payable $ 4,590 To econd paymta expense)