Capricorn Inc. is a private company reporting under ASPE. Its unadjusted trial balance at its fiscal year-end, December 31, 2023, is shown below:
|
Capricorn Inc. Unadjusted Trial Balance December 31, 2023 |
||
|
Debit |
Credit |
|
|
Cash |
$38,000 |
|
|
Inventory |
46,500 |
|
|
Supplies |
5,000 |
|
|
Building |
600,000 |
|
|
Accumulated depreciation – building |
120,000 |
|
|
Equipment |
330,000 |
|
|
Accumulated depreciation – equipment |
$66,000 |
|
|
Accounts payable |
34,000 |
|
|
Dividends payable |
0 |
|
|
Interest payable |
0 |
|
|
Income tax payable |
0 |
|
|
Unearned revenue |
30,600 |
|
|
Bonds payable (maturity date January 1, 2029) |
500,000 |
|
|
Preferred shares ($4 noncumulative, 1,000 issued) |
40,000 |
|
|
Common shares (120,000 issued) |
60,000 |
|
|
Retained earnings |
73,000 |
|
|
Cash dividends – preferred |
0 |
|
|
Cash dividends – common |
0 |
|
|
Sales |
515,000 |
|
|
Cost of goods sold |
159,000 |
|
|
Depreciation expense |
20,000 |
|
|
Income tax expense |
0 |
|
|
Insurance expense |
8,200 |
|
|
Interest expense |
1,800 |
|
|
Rent expense |
32,600 |
|
|
Salaries expense |
185,000 |
|
|
Supplies expense |
12,500 |
|
|
TOTALS |
$1,438,600 |
$1,438,600 |
No new shares were issued or reacquired during 2023.
The following transactions have not yet been recorded for 2023:
1. On December 31, 2023, the board of directors declared a total cash dividend of $54,000
2. The bonds were issued at par with a contract interest rate of 4%. Interest is paid semi-annually on July 1 and January 1.
3. The income tax rate for 2023 is 20%
Required:
Using a blank MS Excel workbook, answer the following questions:
1. Prepare the adjusting entries required for December 31, 2023
2. Prepare the closing entries for December 31, 2023
3. Prepare an income statement for the year ended December 31, 2023
4. Prepare a statement of retained earnings for the year ended December 31, 2023
5. Prepare a classified balance sheet on December 31, 2023
6. Calculate Capricorn’s earnings per share for 2023.
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