Pierot Theater Company?s trial balance at the end of its current fiscal year is shown below.
1. Enter Pierot Theater Company?s trial balance amounts in the Trial Balance columns of a work sheet and complete the work sheet using the following information:
a. Expired insurance, $17,400.
b. Inventory of unused office supplies, $244.
c. Inventory of unused cleaning supplies, $468.
d. Estimated depreciation on the building, $14,000.
e. Estimated depreciation on the theater furnishings, $36,000.
f. Estimated depreciation on the office equipment, $3,160.
g. The company credits all gift books sold during the year to the Gift Books Liability account. A gift book is a booklet of ticket coupons that is purchased in advance as a gift. The recipient redeems the coupons that is purchased in advance as a gift. The recipient redeems the coupons as some point in the future. On June 30 it was estimated that $37,800 worth of the gift books had been redeemed.
h. Accrued but unpaid usher wages at the end of the account period, $680.
2. Prepare an income statement, a statement of owner?s equity, and a balance sheet. Assume no additional investments by the owner, Pierot Rieu.
3. Prepare adjusting and closing entries from the work sheet.
4. Can the work sheet be used as a substitute for the financial statement? Explain your answer.
This question was answered on: Jul 11, 2017
Need a similar solution fast, written anew from scratch? Place your own custom order
We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.