Question: The year-end trial balance of Latham Sales Company pertains to March 31, 20X4.
Cash $7,880
Note Receivable,Current 12,400
Interest Receivable
Inventory 130,050
Prepaid Insurance 3,600
Notes receivable, Long-Term 62,000
Furniture 6,000
Accumulated Depreciation $4,000
Accounts Payable 12,220
Sales Commission Payable
Salary Payable
Unearned Sales Revenue 9,610
Beth Latham, Capital 172,780
Beth Latham, Drawings 66,040
Sales Revenue 440,000
Sales Discounts 4,800
Sales Returns and Allowances 11,300
Interest Revenue 8,600
Purchases 233,000
Purchases Discount 3,100
Purchases Returns & Allowances 7,600
Freight In 10,000
Sales Commission Expense 78,300
Salary Expense 24,700
Rent Expense 6,000
Utilities Expense 1,840
Depreciation Expense
Insurance Expense
Additional data at March 31, 20X4
i) Accrued interest revenue, $1,030
ii) Insurance expense for the year, $3,000
iii) Furniture has an estimated life of six years. Its value is expected to be zero when it is retired from service. 7 - 7 -
iv) Unearned sales revenue still unearned, $7,400
v) Accrued salary expense, $1,200
vi) Accrued sales commission expense, $1,700
vii) Inventory on hand, $133,200
Required: 1) Adjusting journal entries
2) A multi-step income statement, statement of owner's equity and a balance sheet.
3) Prepare the necessary closing entries.