Manville Corporation_Worksheet and Financial Statements

Manville Corporation_Worksheet and Financial StatementsManville Corporation – work sheet and Financial Statements

1.
The list of accounts below and the unadjusted
balances of these accounts were taken from the ledger of the Manville
Corporation at the end of their accounting period, March 31, 20X2:

Cash $
3,995
Accounts
Receivable 13,240
Allowance for
Doubtful Accounts 120

Inventory—April 1, 20X1 22,800
Prepaid Insurance 360
Supplies on Hand 520
Equipment 15,000

Accumulated Depreciation—Equipment 4,500
Accounts Payable 11,870

Taxes Payable 390
Capital Stock 25,000

Retained Earnings 11,920

Dividends 9,000
Sales 89,490

Sales Returns and Allowances 920
Sales Discounts 1,330

Purchases 56,320

Purchase Returns and Allowances 490
Purchase Discounts 1,125
Transportation-In 880
Sales Salaries 11,800
Rent Expense 3,600
Advertising Expense 2,700
Utilities Expense 1,880
Maintenance Expense 560
Additional
data:
a. Merchandise inventory at March 31, 20X2, was $23,300.
b. The Allowance for Doubtful Accounts should be increased by $600.
c. Prepaid insurance represents a three-year policy purchased April 1,
20X1.
d. Supplies on hand were estimated to be $170 on March 31, 20X2.
e. The cost of the equipment is being depreciated over a 15-year
estimated life using the straight-line method. Salvage value should be ignored.

f. Unpaid sales salaries on March 31, 20X2, amounted to $200.
REQUIRED:
1. Prepare a work sheet. (Adjusted trial balance columns may be omitted.)

2. Prepare an income statement.
3. Prepare a statement of retained earnings.
4. Prepare a balance sheet.
5. Prepare the closing entries.