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Homework answers / question archive / Presented below is an adjusted trial balance for Cowell Company, at December 31, 2019 Cash €20,000 Accounts payable €10,000 Accounts receivable 18,000 Notes payable 9,000 Prepaid insurance 15,000 Acc
Presented below is an adjusted trial balance for Cowell Company, at December 31, 2019 Cash €20,000 Accounts payable €10,000 Accounts receivable 18,000 Notes payable 9,000 Prepaid insurance 15,000 Acc. depreciation--Equipment 3,000 equipment 14,000 Sales Revenues 32,000 Depreciation expense 7,000 Service revenue 10,000 Dividends 8,000 Retained earnings 15,000 Advertising expense 1,200 Unearned service revenue 12,000 Rent expense 800 Share capital-ordinary 12,000 Salaries and wages expense 5,000 Insurance expense 2.000 Cost of goods Sold Total €103,000 12.000 €103,000 Required Prepare closing entries for December 31, 2019.1 Prepare Classified Statement of Balance Sheet 2
Adjusting Entries:
| Cowell Company | |||
| General Journal | |||
| Date | Accounts | Debit | Credit |
| 31-Dec-19 | Profit and loss account | 28,000 | |
| Advertsing expense | 1,200 | ||
| Rent expense | 800 | ||
| Salaries and wages expense | 5,000 | ||
| Insurance expense | 2,000 | ||
| Depreciation expense | 7,000 | ||
| Cost of goods sold | 12,000 | ||
| (To close all the expenses account) | |||
| 31-Dec-19 | Sales revenue | 32,000 | |
| Service Revenue | 10,000 | ||
| Profit and loss account | 42,000 | ||
| (To close all the revenue accounts) | |||
| 31-Dec-19 | Profit and loss account | 14,000 | |
| Retained earnings | 14,000 | ||
| (To transfer profit for the year) | |||
| 31-Dec-19 | Retained earnings | 8,000 | |
| Dividends | 8,000 | ||
| (To adjust dividend with the retained earnings) |
Classified Balance Sheet:
| Cowell Company | ||
| Balance Sheet | ||
| As at 31 Dec 2019 | ||
| Current assets: | ||
| Cash | 20,000 | |
| Accounts receivables | 18,000 | |
| Prepaid insurance | 15,000 | |
| Total current assets | 53,000 | |
| Non-current assets: | ||
| Equipment | 14,000 | |
| Accumulated depreciation-Equipment | -3,000 | |
| Total non current assets | 11,000 | |
| Total assets | 64,000 | |
| Current liabilities: | ||
| Accounts payables | 10,000 | |
| Notes payables | 9,000 | |
| Unearned service revenue | 12,000 | |
| Total current liabilities | 31,000 | |
| Non current liabilities | - | |
| Total liabilities | 31,000 | |
| Equity: | ||
| Share capital | 12,000 | |
| Retained earnings | 21,000 | |
| Total equity | 33,000 | |
| Total equity and liabilities | 64,000 |
Workings:
| Balance of retained earnings | 15,000 |
| Profit for the year | 14,000 |
| Dividends | -8,000 |
| Enfing balance of retained earnings | 21,000 |
