ACC291 The Baker Company is a merchandising enterprise that uses the perpetual inventory system. Account balances for the company

The Baker Company is a merchandising enterprise that uses the perpetual inventory system. Account balances for the company as of September 30, 2013, the last day of the fiscal year, are as follows: 

 

 Cash $ 31,165 

 Accounts Receivable 126,100 

 Merchandise Inventory 435,000 

 Prepaid Insurance 10,600 

 Store Supplies 3,750 

 Office Supplies 1,700 

 Store Equipment 225,000 

 Accumulated Depreciation – 

 Store Equipment 40,300 

 Office Equipment 72,000 

 Accumulated Depreciation – 

 Office Equipment 17,200 

 Accounts Payable 66,700 

 Salaries Payable 0 

 Unearned Rent 1,200 

 Notes Payable: 

 Due within 12 months 35,000 

 Due beyond 12 months 160,000 

 Bertha Baker, Capital 332,100 

 Bertha Baker, Drawing 50,000 

 Sales 1,147,500 

 Sales Returns & Allowances 15,500 

 Sales Discounts 6,000 

 Cost of Merchandise Sold 601,200 

 Sales Salaries Expense 86,400 

 Advertising Expense 29,450 

 Depreciation Expense – Store 

 Equipment 0 

 Store Supplies Expense 0 

 Miscellaneous Selling Expense 1,885 

 Office Salaries Expense 60,000 

 Rent Expense 30,000 

 Insurance Expense 0 

 Depreciation Expense – Office 

 Equipment 0 

 Office Supplies Expense 0 

 Miscellaneous Administrative Expense 1,650 

 Rent Income 0 

 Interest Expense 12,600 

  

Data needed for year-end adjustments follow: 

 

 Physical merchandise inventory on September 30 $418,500 

 Insurance expired during the year 6,000 

 Supplies on hand on September 30: 

 Store Supplies 1,500 

 Office Supplies 700 

 Depreciation for the year: 

 Store Equipment 8,500 

 Office Equipment 4,500 

 Salaries Payable as of September 30: 

 Sales Salaries 3,450 

 Office Salaries 2,550 

 Unearned Rent as of September 30 400 

 

Instructions: 

 

a. Prepare a work sheet for the fiscal year ended September 30, 2013.  

b. Prepare a multiple-step income statement for the fiscal year ended September 30, 2013. 

c. Prepare a statement of owner’s equity for the fiscal year  ended September 30, 2013, assuming no additional investments  by the owner during the year.  

d. Prepare a report form of balance sheet as of September 30, 2013, assuming that the current portion of notes payable is  $35,000.

e. Journalize adjusting entries as of September 30, 2013.  

f. Journalize closing entries as of September 30, 2013. 

g. Prepare a post-closing trial balance as of September 30, 2013.

  

Check Figures: 

 

Unadjusted Trial Balance columns: $1,800,000 

Adjustments columns: $45,550 

Adjusted Trial Balance columns: $1,819,000  

Net Income: $258,865  

Income Statement columns: $1,148,300  

Balance Sheet columns: $929,565  

Capital balance as of March 31, 1011: $540,965