About Acccounting Assingment

Trial Balance

Cloud 9 Incorporated

Trial Balance

December 31, 2020

Unadjusted trial balance Adjustments Adjusted Trial Balance Closing Entries Post Closing Trial Balance

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr

Cash $ 98,546

Accounts receviable $ 25,032

Allowance for doubtful accounts $ 500

Prepaid insurance $ 1,600

Prepaid rent $ 24,000

Inventory $ 985,362

Land $ 39,856

Computer hardware and software $ 19,333

Accumulated depreciation -computer hardware and software $ 12,057

Furniture and equipment $ 14,523

Accumulated depreciation – furniture and equipment $ 8,816

Leasehold improvements $ 856,365

Accumulated depreciation – leasehold improvements $ 480,369

Intangibles $ 45,000

Accumulated amortization – intangibles $ 33,000

Goodwill $ 250,000

Accounts payable $ 12,698

Unearned revenue $ 1,253

Income tax payable $ 1,500

Interest payable

Notes payable $ 58,301

Bonds payable $ 475,000

Preferred shares $ 176,522

Common shares $ 171,130

Cash dividend -common $ 75,000

Cash dividend -preferred $ 50,000

Retained earnings $ 256,845

Sales $ 15,152,369

Cost of goods sold $ 9,856,554

Salaries expense $ 2,183,659

Depreciation expense

Amortization expense

Insurance expense

Bad debt expense

General and administrative expenses $ 60,596

Rent expense $ 1,700

Utilities expense $ 26,985

Interest expense $ 3,658

Gain/Loss on sale of asset

Income tax expense

Loss on discontinued operations $ 2,347,591

Gain on sale of discontinued operations $ 125,000

$ 16,965,360 $ 16,965,360 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0

$ – 0 $ – 0 $ – 0 $ – 0 $ – 0

Adjusting Journal Entries

Adjusting
Entry Dr Cr

A

B

C

D

E

F

G

H

I

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Financial Statements & EPS

Cloud 9

Income Statement

Year ended December 31, 2020

Gross profit –

Operating expenses:

$ – 0

Profit from operations $ – 0

Other revenue and expenses:

$ – 0

Profit before income tax $ – 0

Income tax Expense (25%) $ – 0

Profit from continuing operations $ – 0

Profit $ – 0

Cloud 9

Statement of Retained Earnings

Year ended December 31, 2020

Opening balance

Current Year Profit

Closing balance $ – 0

Cloud 9

Balance Sheet

Year ended December 31, 2020

Assets

Current

$ – 0

Long Term:

$ – 0

$ – 0

Liabilities

$ – 0

Shareholders’ Equity

$ – 0

Retained earnings $ – 0

$ – 0

Closing Entries

Closing
Entry Dr Cr

To close revenue and expense accounts to income summary.

To close income summary to retained earnings.