Question

Disney Entertainment Company

December, 31,2019 Unadjusted Trial Balance

	Debit	Credit
100 Cash	20820
101 Checks Received	17700
102 Banks	13000
103 Checks Given	-
120 Accounts Receivables	20000	11800
121 Notes Receivables	28000	-
153 Merhcandise Inventory	57000	-
252 Buildings	40000
300 Bank Loans	-	-
320 Accounts Payable	-	10000
321 Notes Payable	-	48000
500 Capital	-	32000
600 Domestic Sales	-	67000
621 Cost of the Goods Sold	10000	43720
General Administrative Expenses	6000	-
TOTAL	212520	212520

Above is a business's general unadjusted trial balance for 2019. End of period transactions are as follows:

- In the bank statement received from the bank, the remainder of the business account is 13.450 $. The bank accrued $ 450 interest in favor of the enterprise and the difference is due to this.

- The seller declared to the account of the company that he had executed an interest of 300 $ per contract.

- According to the contract, 250 $ interest was charged to the buyer.

- Commercial goods were counted and it was observed that goods of 37,000 $ were available.

- There is no difference between the rest of other accounts and physical results.

a)SHOW JOURNAL ENTRY AND LEDGER REGISTERS by making the end of period operations of the business.

b) Edit ADJUSTED TRIAL BALANCE

c) Arrange the INCOME STATEMENT AND BALANCE SHEET for the end of the semester.

Can you explain more clearly and simple way. Make a easy table and should be easy to understand.

Thanks <3

Answer 1

Journal

1)In the bank statement received from the bank, the remainder of the business account is 13.450 $. The bank accrued $ 450 interest in favor of the enterprise and the difference is due to this.

	Debit	Credit
Bank Account Dr.	$ 450
Bank Interest		$ 450

2)The seller declared to the account of the company that he had executed an interest of 300 $ per contract.

	Debit	Credit
Other Interest Dr.	$ 300
Accounts Payable		$ 300

3)According to the contract, 250 $ interest was charged to the buyer.

	Debit	Credit
Account receivable account Dr.	$ 250
Other Interest		$ 250

4)Commercial goods were counted and it was observed that goods of 37,000 $ were available.

No entry required.

Note:

1. For better Understanding bank interest is shown as bank interest.

Adjusted Trial Balance:

	Debit	Credit
Cash	20,820.00	-
Checks Received	17,700.00	-
Banks	13,450.00	-
Bank Interest	-	450.00
Accounts Receivables	20,250.00	11,800.00
Interest Expense	300.00	250.00
Notes Receivables	28,000.00	-
Merhcandise Inventory	57,000.00	-
Buildings	40,000.00	-
Bank Loans	-	-
Accounts Payable	-	10,300.00
Notes Payable	-	48,000.00
Capital	-	32,000.00
Domestic Sales	-	67,000.00
Cost of the Goods Sold	10,000.00	43,720.00
General Administrative Expenses	6,000.00	-
	2,13,520.00	2,13,520.00

INCOME STATEMENT :

Opening Merchandise Inventory	57,000.00	Domestic Sales	67,000.00
Gross Profit	80,720.00	Cost of good sold	33,720.00**
		Closing Merchandise Inventory	37,000.00
	1,37,720.00		1,37,720.00
Administrative expense	6,000.00	Gross profit	80,720.00
Other Interest	50.00***	Bank interest	450.00
Net profit	75,120.00
	81,170.00		81,170.00

**Cost of good sold = 43720-10000= $ 33720

*** Other Interest = 300-250= $ 50

BALANCE SHEET:

Liability	$	Asset	$
Capital	32,000.00	Building	40,000.00
Notes Payable	48,000.00	Merhcandise Inventory	37,000.00
Accounts Payable	10,300.00	Accounts receivable	8,450.00##
Net profit	75,120.00	Note receivable	28,000.00
		Bank	13,450.00
		Check received	17,700.00
		Cash	20,820.00
	1,65,420.00		1,65,420.00

## Accounts receivable = 20250-11800 = $ 8450