Summary QuestionMackenzie Inc. uses a perpetual inventory system and has prepared the following ad

Question


Mackenzie Inc. uses a perpetual inventory system and has prepared the

following adjusted trial balance on December 31, 2019: Mackenzie Inc.

ADJUSTED TRIAL BALANCE December 31, 2019 ACCOUNT TITLE

DEBIT CREDIT 1 Cash 2,800.00 2 Accounts Receivable 3,500.00 3 Allowance

for Doubtful Accounts 250.00 4 Inventory 6,600.00 5 Prepaid Insurance 800.00

6 Land 5,400.00 7 Buildings and Equipment 32,000.00 8 Accumulated

Depreciation 14,200.00 9 Accounts Payable 3,200.00 10 Salaries Payable

430.00 11 Unearned Rent 360.00 12 Income Taxes Payable 2,650.00 13 Note

Payable 4,300.00 14 Interest Payable 700.00 15 Common Stock 8,100.00 16

Retained Earnings 7,240.00 17 Dividends 1,300.00 18 Income Summary 19

Sales Revenue 36,090.00 20 Rent Revenue 1,440.00 21 Cost of Goods Sold

14,910.00 22 Selling Expenses 4,800.00 23 Administrative Expenses 3,500.00

24 Interest Expense 700.00 25 Income Tax Expense 2,650.00 26 Totals

78,960.00 78,960.00 For classification purposes: Note payable is due July 1,

2023 Interest payable is due July 1, 2023 Common Stock (1,500 shares) solve

, for income statement and statement of retained earning and balance sheet and

general journal




Answer & Explanation


To prepare the financial statements and general journal entries for Mackenzie

Inc., we will follow these steps:


Income Statement


1. Revenues:


o Sales Revenue: $36,090


o Rent Revenue: $1,440


o Total Revenues: $37,530


2. Expenses:


o Cost of Goods Sold (COGS): $14,910


o Selling Expenses: $4,800