Problem: Forest Adventures has the following account balances on August 30, 2008
Accounts payable: 10,875
Accounts receivable: 11,625
Accumulated amortization - equipment: 32,250
Cash: 3,750
Cost of goods sold: 342,375
E. Correa, Capital: 181,875
E. Correa, Withdrawals: 7,500
Equipment: 90,000
Interest earned: 3,000
Inventory: 70,125
Operating expenses: 180,750
Sales discounts: 4,125
Sales returns and allowances: 28,500
Sales revenues: 517,500
Supplies: 14,250
Unearned sales revenue: 7,500
Additional date at August 30, 2008
1) A physical count of items showed $1,500 of supplies on hand
2) An inventory count showed inventory on hand at August 30, 2008, $66,400
3) The equipment has an estimated useful life of eight years and is expected to have no value at the end of its life
4) Unearned sales revenues of $2625 were earned by August 30, 2008
Required:
1) Record all adjustments and closing entries that would be required on August 30, 2008
2) Prepare the financial statements of Forest adventures for the year ended August 30, 2008