Chapter 5 Problem Set Problem 5-1 Davis Company provided the alphabetical list of accounts with...
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Accounting
Chapter 5 Problem Set Problem 5-1 Davis Company provided the alphabetical list of accounts with balances at the end of their second quarter, after adjusting entries had been prepared. The quarter ended on June 30, 2020. All accounts have their normal balance. Create a trial balance. Then prepare the multiple-step Income Statement, Statement of Retained Earnings, and the classified Balance Sheet. 8,320 3,000 Account Name Accounts Payable Accounts Receivable Accumulated Depreciation, Equipment Cash Common Stock Cost of Goods Sold Depreciation Expense, Equipment Dividends Equipment Income Tax Expense Insurance Expense Interest Expense Interest Payable Inventory Notes Payable (due in 10 years) Prepaid Insurance Rent Expense Retained Earnings Sales Revenue Supplies Expense Unearned Revenue Wages Payable 8,000 9,950 10,000 65,350 8,000 3,000 80,000 1,645 3,600 100 100 3,070 10,000 3,600 9,000 30,000 122,250 3,180 2,000 2,825 Problem 5-2 Based on the information in Problem 5-1, prepare the 4 closing entries. Also create T-accounts for Income Summary and Retained Earnings. Post the relevant information to these two T-accounts
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