I have the closing entries prepared after seeing the trial


Question Description:

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I have the closing entries prepared after seeing the trial balances, but now I have to do three things: 1) Prepare a classified balance sheet 2) Prepare a multiple-step income statement 3) Cash Flow Statement using the indirect method. There are similar ways on how to do these through textbooks, but when you turn around and look at another website, they have a completely different method for the same thing, and I’m getting confused. I was wondering if someone here can help me out with these three things. The closing entries are already done, and the two trial balances are on the same spreadsheet. Thanks! Lords of Pain Manufacturing.xlsx Lords of Pain Construction Trial Balance (Current Year) December 31, 20XX Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals DR 362,750 320,750 CR 15,000 10,000 30,000 50,000 150,000 7,500 500,000 50,000 105,000 125,000 500,000 300,000 171,000 850,000 550,000 150,000 2,123,500 2,123,500 Lords of Pain Construction Post-Closing Trial Balance (prior year) December 31, 20XX DR Cash 15,000 Accounts receivable 225,750 Allowance for uncollectible accounts Prepaid insurance 5,000 Inventory 80,000 Land 50,000 Building 150,000 Accumulated depreciation-building Equipment 500,000 Accumulated depreciation-equipment Accounts payable Note payable Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals 1,025,750 Closing / Adjusting entries for Lords of Pain Manufacturing Accounts Debit Credit CR $8,500 Insurance Expenses Prepaid Insurance (Recording insurance which has expired) 20,000 Bad Debt Expense Allowance for uncollectable debt (Recording bad debts) $2,000 $8,500 $2,000 7,500 50,000 55,000 50,000 5,000 17,250 350,000 300,000 171,000 Inventory Cost of goods sold (Recording inventory at proper level) Depreciation: Buildings Accumulated depreciation: Buildings (Recording depreciation of buildings) $10,000 $10,000 $7,500 $7,500 $50,000 Interest expense Interest payable (Recording interest expense outstanding) 1,025,750 Depreciation: Equipment Accumulated depreciation: Equipment (Recording depreciation of equipment) $21,250 Salaries expense Salaries payable (Recording salaries expense outstanding) $2,000 $50,000 $21,250 $2,000 Income Summary Cost of goods sold Salaries expense Insurance expense Depreciation Expense Interest Expense Bad Debt Expense $781,250 Sales Revenue Income Summary (Transfering sales revenue) $850,000 Income Summary Retained Earnings (Transfer profits) $540,000 $152,000 $2,000 $57,500 $21,250 $8,500 $850,000 $68,750 $68,750 Read more

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