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Completing a Work Sheet and Financial Statements The trial balance for Cycle Tech
Chapter 19, Problem 8(choose chapter or problem)
Completing a Worksheet and Financial Statements
The trial balance for Cycle Tech Bicycles, prepared on a ten-column work sheet, is included in your working papers.
Instructions
1. Complete the work sheet for the year ended December 31. Use the following information to make the adjustments.
Ending merchandise inventory $25,191
Ending supplies inventory 1,221
Expired insurance 825
Total federal corporate income taxes for the year 3,472
2. Prepare an income statement.
3. Prepare a statement of retained earnings.
4. Prepare a balance sheet.
Predict whether net income would be higher or lowerif the ending value of Merchandise Inventory wasactually $28,000.
Questions & Answers
QUESTION:
Completing a Worksheet and Financial Statements
The trial balance for Cycle Tech Bicycles, prepared on a ten-column work sheet, is included in your working papers.
Instructions
1. Complete the work sheet for the year ended December 31. Use the following information to make the adjustments.
Ending merchandise inventory $25,191
Ending supplies inventory 1,221
Expired insurance 825
Total federal corporate income taxes for the year 3,472
2. Prepare an income statement.
3. Prepare a statement of retained earnings.
4. Prepare a balance sheet.
Predict whether net income would be higher or lowerif the ending value of Merchandise Inventory wasactually $28,000.
ANSWER:
Step 1 of 6
A 10-column worksheet can be defined as the template with 10 columns that assists the accountant of the company in the financial reporting process. It is not necessary to prepare but it helps the accountant in identification of the errors. It ensures that accounting records contain all necessary information and adjustments.