Professional Documents
Culture Documents
The trial balance of BABA Black Sheep Company as of December 31, 2022 is shown below.
DEBIT CREDIT
Cash 200,000
Trade Receivables 80,000
Allowance for doubtful accounts 5,000
Merchandise Inventory 50,000
Prepaid Insurance 8,000
Office Equipment 150,000
Accumulated Depreciation 2,500
Loans Payable 30,000
Accrued Expense Payable 5,000
Ryan, Capital 143,000
Jing, Capital 144,000
Sales 367,800.00
Sales Discounts 2,800.00
Sales Returns 3,600.00
Purchases 65,000.00
Purchase Discounts 1,000.00
Purchase Returns 1,500.00
Marketing Expense 28,500.00
Salaries and Wages 80,000.00
Utilities Expense 25,500.00
Taxes and Licenses 5,000.00
Other Miscellaneous Expenses 1,400.00
REQUIRED:
1. Prepare the adjusting entries for items (a.) to (f.) (6 points x 2)
2. Compute for profit after income tax. (5 points)
3. Prepare the distribution of profit (loss) to Ryan and Jing. (10 points)