Instructions

Jack, Inc. sells toy mice to high end pet stores. The company has been in business for many years and uses the calendar year for accounting purposes. The company is publicly owned, subject to all applicable rules and laws. The company uses the perpetual method to account for its inventory.

Following is Jack's trial balance for calendar year $2023$ through December $20$th$.$ This trial balance does not reflect the transactions that occurred during the last $11$ days of the year or adjustments that are necessary, as described by the additional information below. The Loan payable is due in $48$ months $($hint: current or non current$).$

Jack, Inc.

Trial Balance

As of December $20,2023$

Debits

Credits

Cash

$ $25,400$

$ $-$

Accounts receivable

$13,000$

$-$

Supplies

$10,770$

$-$

Inventory

$21,000$

$-$

Equipment

$44,000$

$-$

Accumulated depreciation

$-$

$-$

Accounts payable

$-$

$22,000$

Rent payable

$-$

$-$

Loan payable

$-$

$33,500$

Interest payable

$-$

$-$

Capital stock

$-$

$16,000$

Retained earnings

$-$

$21,020$

Sales

$-$

$60,570$

Sales $-$ Discounts

$-$

$-$

Cost of goods sold

$4,020$

Rent expense

$9,000$

$-$

Salaries expense

$20,000$

$-$

Supplies expense

$-$

$-$

Depreciation expense

$-$

$-$

Interest expense

$500$

$-$

Utilities expense

$5,400$

$-$

$ $153,090$

$ $153,090$

The company received payment to settle a $$11,$Instructions

Jack, Inc. sells toy mice to high end pet stores. The company has been in business for many years and uses the calendar year for accounting purposes. The company is publicly owned, subject to all applicable rules and laws. The company uses the perpetual method to account for its inventory.

Following is Jack's trial balance for calendar year $2023$ through December $20$th$.$ This trial balance does not reflect the transactions that occurred during the last $11$ days of the year or adjustments that are necessary, as described by the additional information below. The Loan payable is due in $48$ months $($hint: current or non current$).$

Exam $1$

Jack, Inc.

Trial Balance

As of December $20,2023$

Debits

Credits

Cash

$ $25,400$

$ $-$

Accounts receivable

$13,000$

$-$

Supplies

$10,770$

$-$

Inventory

$21,000$

$-$

Equipment

$44,000$

$-$

Accumulated depreciation

$-$

$-$

Accounts payable

$-$

$22,000$

Rent payable

$-$

$-$

Loan payable

$-$

$33,500$

Interest payable

$-$

$-$

Capital stock

$-$

$16,000$

Retained earnings

$-$

$21,020$

Sales

$-$

$60,570$

Sales $-$ Discounts

$-$

$-$

Cost of goods sold

$4,020$

Rent expense

$9,000$

$-$

Salaries expense

$20,000$

$-$

Supplies expense

$-$

$-$

Depreciation expense

$-$

$-$

Interest expense

$500$

$-$

Utilities expense

$5,400$

$-$

$ $153,090$

$ $153,090$

A $=$ $$16,000$ B $=1\mathrm{.}5$ C $=$ $$23,700$ D $=$ $$1,450$ E $=$ $$1,470$

The company received payment to settle a $$11,000$ Account receivable on December $21.$ The terms of the receivable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

On Dec $22,$ the company settled with cash a $$16,000$ Account payable with a vendor who sold the company inventory on December $18($the balance is included in Accounts payable at Dec $20).$ The terms of the payable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

The company sold C of toy mice on December $22.$ The terms of the sale were B$/10,$ N $30.$ The cost $($inventory$)$ of the mice was $$2,500.$

The company's president, Elizabeth, decided the company needed more capital, so she sold more stock on December $30$th for A

The equipment was purchased near the beginning of the year. D of its cost expired this year.

Interest of E is owed on December $31,$ but has not been recorded.

Supplies on hand at year end were counted, and amount to $$2,000.$

December's rent of $$2,000$ is owed, but has not been recorded$\mathrm{.}000$ Account receivable on December $21.$ The terms of the receivable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

On Dec $22,$ the company settled with cash a $$16,000$ Account payable with a vendor who sold the company inventory on December $18($the balance is included in Accounts payable at Dec $20).$ The terms of the payable were B$/10,$ N $30$ and the payment reflected that it was within the discount period.

The company sold C of toy mice on December $22.$ The terms of the sale were B$/10,$ N $30.$ The cost $($inventory$)$ of the mice was $$2,500.$

The company's president, Elizabeth, decided the company needed more capital, so she sold more stock on December $30$th for A

The equipment was purchased near the beginning of the year. D of its cost expired this year.

Interest of E is owed on December $31,$ but has not been recorded.

Supplies on hand at year end were counted, and amount to $$2,000.$

December's rent of $$2,000$ is owed, but has not been recorded.