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The end of the month trial balance of lake Placid Building Material,

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Question;The end of the month trial balance of lake Placid BuildingMaterial, inc, at january 31 of the current year.cash 6,430Account receivable 19,090Inventory 65,400supplies 2,700Building 188,170Accumulated depreciation-building 36,000Fixtures 45,600Accumulated depreiation-Fixture 5,800Account payable 28,300Salary payableInterest payableUnearned sales revenue 6,560Note payable, long-term 87,000common stock 20,000retained earnings 124,980Dividends 9,200Sales revenue 177,970sales discount 7,300Sales returns andallowances 8,140Cost of goods sold 103,000Selling expenses 21,520General expenses 10,060Interest expenseTotal 486,610 486,610Additional data at january 31,20xx:a. Supplies consumed during the month,$1,500.Half is selling expense and the other half is general expense.b. Depreciation for the month: building, $4000, fixtures, $4800. one-fourth of depreciation is selling expense and three-fourth is general expense.c. Unearned sales revenue still unearned, $1,200.d. Accrued salaries, a gneral expense, $1,150.e. Accrued interest expense, $780.f. Inventory on hand,$63,720.Required:1. using four-column accounts, open the acoounts listed on the tiral balance, insert their unadjusted trial balances. Date the balances of the following accounts January 1: Suppies, Building, Accumulated depreciation-building, Accumulated depreciation-fixtures, Unearned sales revenue and retained earnings. date the balance of the dividends, January 31.2. Prepared the adjusted trial balance for the month ended January 31 of the current year. Lake placid group all operating expense under two accounts,selling expense and general expense.leave two blank lines under selling expense and three blank lines under general expense.3. journalize the adjusted entries at january 31.4. Post the adjusting entries.5. Prepare the company's multiple-step income statement and statement of retained earnings for the month ended january 31 of the current year. Also prepare the classified balance sheet.6. journalize the closing entries at january 31.7. post the closing entries.8. Compute Lake Placid's current ration and debt ratio at january 31, and compare these values whith the industry average of 1.9 for the current ratio and 0.57 for the debt ratio. compute the gross margin percentage and the rate of inventory turnover for the month (the inventory balance at the end december was 67,100), and compare these ratio values with the industry average of 0.26 for the gross margin ratio and 1.0 for inventory turnover. does lake Placid building material appear to be stronger or weaker than the average company in the building material industry.

 

Paper#39117 | Written in 18-Jul-2015

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