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what should i do with these adjustments? im stump here and my adjusted trail bal

ID: 2420989 • Letter: W

Question

what should i do with these adjustments? im stump here and my adjusted trail balance never gets balanced!

plz help.

You are presented with the following alphabetical list of accounts and balances (in thousands) for Canadian Importers Limited as at March 31, 2015 $ 46,300 Goodwill Accounts payable Accounts receivable Accumulated depreciation-buildings Accumulated depreciation-equipment Buildings Bank loan payable (due 2018) Cash Common shares Cost of goods sold Dividends Equipment S 7,600 30,200 13,000 Interest expense 3,600 Land 2,150 42,500 74,250 19,750 67,750 12,200 3,950 37,050 356,000 39,500 Merchandise inventory 10,050 Mortgage payable 6,000 Office expense 32,900 Other current liabilities 244,200 Prepaid insurance 1,850 Retained earnings, February 1, 2014 10,900 Sales Additional information a) The Bank loan agreement requires annual payments of $2,500, with the balance due at the end of the term of the loan (in 2018) b) The CFO estimates that the Company will owe S16,000 in income tax when it files its corporate income tax return in June 2017.

Explanation / Answer

Solution.

Adjusted Trail Balance.

Calculation of Retained Earning.

Note :- Incometax payble is forcasted for accounting year 2018 so we dont show in 2015 accounting year.

Particular Amount Dr. Amount Cr. Cash              6,000 Account recevaiable            30,200 Goodwill              7,600 Building            39,500 Equipment            10,900 Land            42,500 Prepaid insurance              3,950 Marchandise inventory            74,250 Accumulated Dep. Building              13,000 Accumulated Dep.Equipment                3,600 Bank Loan Payable                     -                10,050 incometax payable                       -   Mortgage payable              19,750 Account payable              46,300 Common share              32,900 Retained Earning           147,000 Other current libility              12,200 sales                       -   office Expense            67,750 Interest Expense              2,150 Cost of goods sold                     -   Dividends                     -           284,800           284,800