James Technology

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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.

Trial Balance

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