The end of the month trial balance of St. James Technology at January 31 of the current year follows. Additional data at January 31, 20xx.
Supplies consumed during the month, $1,500. Half is selling expense and the other half is general expense.
Depreciation for the month: building, $4,000, fixtures, $4,800. One fourth of depreciation is selling expense and three fourths is general expense.
Unearned sales revenue still unearned, $1,200.
Accrued salaries, a general expense, $1,150.
Accrued interest expense $780.
Inventory on hand, $63,720. St. James uses the perpetual inventory system.
using four column accounts, open the accounts listed on th trial balance, inserting their unadjusted balances. Date the balance of the following accounts January 1: Supplies, Building, Accumulated Depreciation – Building: Fixtures: Accumulated Depreciation- Fixtures: Unearned Sales Revenue: and Dirk St. James, Capital. Date the balance of Dirk St. James, Withdrawals, January 31. Also open the Income Summary, account number 33.
Enter the trial balance on an accounting worksheet, and complete the work sheet for the month ended January 31 of the current year. St. James Technology groups all operating expenses under two accounts, Selling Expense and General Expense. Leave two blank lines under Selling Expense and three blank lines under General Expense.
Prepare the company’s multi-step income statement and statement of owner’s equity for the month ended January 31 of the current year. Also prepare the balance sheet at that date in report form.
Journalize THE ADJUSTING AND CLOSING ENTERIES AT January 31, using the journal forms.
Post the adjusting and closing entries using dates and posting references.
Account Number Account Debit Credit
11 Cash $16,430
12 Accounts Receivable $19,090
13 Inventory $65,400
14 Supplies 2,700
15 Building 188,170
16 Accumulated Dpr. Building 36,000
17 Fixtures 45,600
18 Accumulated Dpr. Fixtures 5,800
21 Accounts Payable 28,300
22 Salary Payable
23 Interest Payable
24 Unearned sales Revenue 6,560
25 Note Payable Long Term 87,000
31 James, capital 144,980
32 James, withdrawals 9,200
41 Sales Revenue 187,970
42 Sales Discounts 7,300
43 Sales returns/allowances 8,140
51 Cost of goods sold 103,000
54 Selling expense 21,520
55 General expenses 10,060
56 Interest expense
Total 496,6610 496,610