(Solution) - Tarkington Freight Service provides delivery of merchandise to retail grocery -(2025 Original AI-Free Solution)

Paper Details

Tarkington Freight Service provides delivery of merchandise to retail grocery stores in the Northeast. At the beginning of 2011, the following account balances were available:

During 2011 the following transactions occurred:
a. Tarkington performed deliveries for customers, all on credit, for $2,256,700. Tarkington also made cash deliveries for $686,838.
b. There remains $286,172 of accounts receivable to be collected at December 31, 2011.
c. Tarkington purchased advertising of $138,100 during 2011 and debited the amount to prepaid advertising.
d. Supplies of $27,200 were purchased on credit and debited to the supplies account.
e. Accounts payable at the beginning of 2011 were paid early in 2011. There remains $5,600 of accounts payable unpaid at year-end.
f. Wages payable at the beginning of 2011 were paid early in 2011. Wages were earned and paid during 2011 in the amount of $666,142.
g. During the year, Trish Hurd, a principal stockholder, purchased an automobile costing $42,000 for her personal use.
h. One-half year?s interest at 6 percent annual rate was paid on the note payable on July 1, 2011.
i. Property taxes were paid on the land and buildings in the amount of $170,000.
j. Dividends were declared and paid in the amount of $25,000.
The following data are available for adjusting entries:
? Supplies in the amount of $13,685 remained unused at year-end.
? Annual depreciation on the warehouse building is $70,000.
? Annual depreciation on the warehouse equipment is $145,000.
? Wages of $60,558 were unrecorded and unpaid at year-end.
? Interest for six months at 6 percent per year on the note is unpaid and unrecorded at year-end.
? Advertising of $14,874 remained unused at the end of 2011.
? Income taxes of $482,549 related to 2011 are unpaid at year end.
Required:
1. Post the 2011 beginning balances to T-accounts. Prepare journal entries for transactions (a) through (j) and post the journal entries to T-accounts adding any new T-accounts you need.
2. Prepare the adjustments and post the adjustments to the T-accounts adding any new T- accounts you need.
3. Prepare an income statement.
4. Prepare a retained earnings statement.
5. Prepare a classified balance sheet
6. Prepare closing entries.
7. Did you include transaction (g) among Tarkington?s 2011 journal entries? Why or why not?