McBride Company Opening Account Balances

Mcbride Company Has The Following Opening Account Balances In Its Gene

Record the January transactions in the appropriate journal—sales, purchases, cash receipts, cash payments, and general. Post the journals to the general and subsidiary ledgers. Add and number new accounts in an orderly fashion as needed. Prepare a trial balance at January 31, 2017, using a worksheet. Complete the worksheet with additional information provided. Prepare a multiple-step income statement and an owner's equity statement for January and a classified balance sheet at the end of January. Prepare and post the adjusting and closing entries. Prepare a post-closing trial balance, and verify that the subsidiary ledgers agree with the control accounts in the general ledger.

Paper For Above instruction

The financial management of McBride Company for January 2017 involved meticulous recording of transactions, accurate posting to ledgers, and careful preparation of financial statements. The process began with recording all transactions into the appropriate journals, including sales, purchases, cash receipts, and cash payments. Each transaction was then carefully posted to the general ledger and the respective subsidiary ledgers, with new accounts added as necessary and appropriately numbered to maintain an organized chart of accounts.

Initial account balances as of January 1, 2017, were established based on the opening balances provided in the general ledger. These balances laid the foundation for ongoing recording and adjustments throughout the month. The recording process was systematic, ensuring that all transactions, such as sales on credit, cash sales, purchases on credit, cash payments, and other relevant activities, were accurately documented. For instance, sales of merchandise on account to various customers, cash sales, and credit sales to key customers like B. Berg, R. Kotsay, and S. Andrus were recorded in the sales journal, with supporting invoices and correspondence. Purchases from suppliers like S. Colt, D. Kahn, and D. Baroni were documented in the purchase journal.

The posting process involved updating subsidiary ledgers for accounts receivable and payable, ensuring that individual customer and creditor balances reflected the latest transactions. Checks received from customers and payments made to suppliers were recorded to update account balances, and inventory adjustments were made based on physical counts and recorded returns. Adjustments for supplies, depreciation, insurance, and accrued interest were made as part of the monthly closing process, following the provided additional data such as supplies at January 31 totaling $700, annual depreciation of $1,500, and accrued interest of $30.

Subsequently, the trial balance at January 31, 2017, was prepared using a worksheet that incorporated all transactions and adjustments. This worksheet facilitated the organization of balances for assets, liabilities, and equity, and allowed for the detection of errors or discrepancies before preparing formal financial statements. The worksheet also helped compute ending inventory at $15,000, which was essential for calculating cost of goods sold in the income statement.

The financial statements for January included a multiple-step income statement, which reported gross profit, operating expenses, and net income, and an owner's equity statement, outlining capital movements during the period, including withdrawals and net income. The classified balance sheet categorized assets into current and non-current assets, and liabilities into current and long-term classifications, providing a comprehensive snapshot of the company's financial position at month’s end.

The closing process involved journal entries to transfer revenues and expenses to the owner's capital account, closing temporary accounts to retained earnings, and updating the ledger balances accordingly. The post-closing trial balance confirmed that the debits and credits matched and that the subsidiary ledgers agreed with control accounts in the general ledger. This reconciliation verified the accuracy and completeness of the recording process and ensured readiness for the next accounting period.

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