Manville Corporation_Worksheet and Financial Statements

Manville 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.