Question

In: Accounting

P1. The following trial balance was taken from the books of Coyote Company as of December...

P1. The following trial balance was taken from the books of Coyote Company as of December 31, 2019.

            Account                                                 Debit            Credit

Cash $60,000

Accounts receivable                                             50,000

Allowance for doubtful accounts                                               $ 1,000

Short-Term notes receivable                                 20,000

Inventory, January 1, 2019                                   70,000

Furniture and equipment                                      210,000

Accumulated depreciation of F & E                                           40,000

Patents                                                                100,000

Accounts payable                                                                        22,000

Bonds payable                                                                         20,000

L-T notes payable                                                                    15,000

Common stock                                                                          290,000

Retained earnings                                                                        87,000

Dividends                                                           20,000

Prior period adjustments                                     10,000

Sales                                                                                          700,000

Sales returns & allowance                                    40,000

Sales discount                                                      10,000

Rent revenues                                                                             60,000

Interest revenues                                                                        10,000

Purchase                                                           420,000

Purchase returns & allowance                                                     20,000

Selling expenses                                                 60,000

Advertising expense                                           30,000

Supplies expense                                                  6,000

Insurance expense                                              24,000

Wage and Salary expense                                    90,000

Rent expense                                                         60,000

Loss on sale of PS store before tax                     10,000

Operating income from PS store before tax                             25,000

Totals                                                               1,290,000        1,290,000

At the year end, the following items have not been recorded.

  1. Insurance premium expired during the year, $14,000.
  2. Estimated bad debts expense, 1.0% of net sales.
  3. Inventory as of 12/31/2019 turned out to be $50,000.
  4. Office supplies were purchased for $6,000 and charged to supplies expenses then. There are $2,000 of supplies remaining as of 12/31/2019
  5. Six months’ rent of $60,000 was paid in advance on September 1, 2019 and charged to rent expense then.
  6. Furniture and equipment have an average useful life of 5 years and salvage value of

$10,000. Coyote Company uses the straight-line method of depreciation.

  1. Patents have been amortized by $10,000/year.
  2. Utility bill of $2,000 for the month of December 2019 will be paid on its due date, January 10, 2020.
  3. Salaries earned but not yet paid by December 31, 2019, $8,000.
  4. Tax rate = 30%.

Instructions: prepare

  1. Any necessary adjusting entries at the end of 2019.
  2. Income Statement and statement of retained earnings, and balance sheet of the company for the year 2019 in good forms (i.e. multiple-steps statements)
  3. Any necessary closing entries at the end of 2019.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

P1. The following trial balance was taken from the books of Coyote Company as of December31,...
P1. The following trial balance was taken from the books of Coyote Company as of December31, 2019.        Account     ​​   Debit   ​Credit Cash ​  ​​ $60,000 Accounts receivable ​​   50,000 Allowance for doubtful accounts   ​   ​   $ 1,000 Short-Term notes receivable      ​   20,000 Inventory, January 1, 2019         ​​    70,000 Furniture and equipment           ​   210,000 Accumulated depreciation of F & E   ​ ​   40,000 Patents​​   ​   100,000 Accounts payable       ​​​  22,000 Bonds payable​​​  20,000 L-T notes payable​​​  15,000 Common stock     ​​​ 290,000 Retained earnings   ​​​ 87,000...
The following trial balance was taken from the books of Coyote Company as of December 31,...
The following trial balance was taken from the books of Coyote Company as of December 31, 2019. account debit credit cash 30,000 accounts receivable 40,000 allowance for doubtful accounts 1,000 S-T notes receivable 20,000 Inventory, January 1, 2019 40,000 furniture and equipment 110,000 accumulated depreciation of F&E 20,000 patents 100,000 accounts payable 22,000 bonds payable 20,000 L-T notes payable 15.000 common stock 140,000 retained earnings 40,000 sales 550,000 purchase 278,000 insurance expense 20,000 salary expense 120,000 rent expense 50,000 totals...
The following trial balance was taken from the books of Coyote Company as of December 31,...
The following trial balance was taken from the books of Coyote Company as of December 31, 2019.             Account                                     Debit Credit Cash                                                                $30,000 Accounts receivable                               40,000 Allowance for doubtful accounts                                 $ 1,000 S-T Notes receivable                              20,000 Inventory, January 1, 2019                     40,000 Furniture and equipment                        110,000 Accumulated depreciation of F & E                             20,000 Patents                                                 100,000 Accounts payable                                                          22,000 Bonds payable                                                            20,000 L-T notes payable                                                       15,000 Common stock                                                            140,000 Retained earnings                                                      ...
The following trial balance was taken from the books of Coyote Company as of December 31,...
The following trial balance was taken from the books of Coyote Company as of December 31, 2019.             Account                                                    Debit             Credit Cash                                                                  $60,000 Accounts receivable                                            50,000 Allowance for doubtful accounts                                               $ 1,000 Short-Term notes receivable                                 20,000 Inventory, January 1, 2019                                   70,000 Furniture and equipment                                      210,000 Accumulated depreciation of F & E                                           40,000 Patents                                                               100,000 Accounts payable                                                                        22,000 Bonds payable                                                           ...
The following was taken from the books of Coyote Company as of December 31, 2017. account...
The following was taken from the books of Coyote Company as of December 31, 2017. account debit credit cash $30,000 accounts receivable 40,000 allowance for doubtful accounts 2,000 S-T Notes receivable 19,000 inventory, January 1, 2017 50,000 prepaid insurance 20,000 furniture and equipment 100,000 accumulated depreciation of F&E 40,000 patents 110,000 accounts payable 12,000 bonds payable 20,000 L-T notes payable 10,000 common stock 40,000 retained earnings 140,000 sales 360,000 purchase 149,000 salary expense 50,000 rent expense 56,000 totals 624,000 624,000...
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014....
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014.             Account                                                                                         Debit                 Credit      Cash                                                                                                        $ 9,000 Accounts Receivable                                                                                 40,000 Notes Receivable                                                                                      10,000 Interest Revenue                                                                                                                       500 Allowance for Doubtful Accounts                                                                                      $   1,800 Inventory                                                                                                    44,000 Insurance expense                                                                                      2,000 Prepaid Insurance                                                                                       4,800 Equipment                                                                                               110,000 Accumulated Depreciation--Equip.                                                                                      17,000 Accounts Payable                                                                                                                 10,800 Common Stock                                                                                                                     44,000 Retained Earnings                                                                                                                55,000 Sales Revenue                                                                                                                   280,000 Cost of Goods Sold                                                                                 126,000 Salaries and Wages Expense                                                                   50,500 Rent Expense                                                                                            12,800                                                                                                                              Totals    $409,100     ...
Question 3 The following trial balance was taken from the books of Venus Corporation at December...
Question 3 The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account                                                                                                           Debit       Credit Cash........................................................................................................    $   40,000 Accounts Receivable..............................................................................       106,000 Prepaid Rent ...........................................................................................         12,800      Note Receivable......................................................................................           8,000 Merchandise Inventory...........................................................................         54,000 Unexpired Insurance...............................................................................           4,800 Furniture and Equipment........................................................................       138,000 Accumulated Depreciation.....................................................................                           15,000 Accounts Payable...................................................................................                           12,600 Common Shares......................................................................................                           44,000 Retained Earnings...................................................................................                           65,000 Sales........................................................................................................                           410,000 Cost of Goods Sold.................................................................................      ...
The following trial balance was taken from the books of Venus Corporation at December 31, 2020:...
The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account                                                                                                           Debit            Credit Cash........................................................................................................... $   40,000 Accounts Receivable.................................................................................... 106,000 Prepaid Rent ...............................................................................................     12,800                   Note Receivable................................................................................................ 8,000 Merchandise Inventory................................................................................... 54,000 Unexpired Insurance......................................................................................... 4,800 Furniture and Equipment.............................................................................. 138,000 Accumulated Depreciation........................................................................................         15,000 Accounts Payable.......................................................................................................         12,600 Common Shares.........................................................................................................         44,000 Retained Earnings......................................................................................................         65,000 Sales...........................................................................................................................       410,000 Cost of Goods Sold....................................................................................... 128,000 Salaries Expense............................................................................................. 53,000        Totals.................................................................................................. $ 546,600   $ 546,600 At year end, the following...
The following trial balance was taken from the books of Venus Corporation at December 31, 2020:...
The following trial balance was taken from the books of Venus Corporation at December 31, 2020: Account                                                                                                           Debit            Credit Cash.........................................................................................................    $   40,000 Accounts Receivable...............................................................................       106,000 Prepaid Rent ...........................................................................................         12,800                   Note Receivable......................................................................................           8,000 Merchandise Inventory...........................................................................         54,000 Unexpired Insurance...............................................................................           4,800 Furniture and Equipment........................................................................       138,000 Accumulated Depreciation......................................................................                            15,000 Accounts Payable....................................................................................                            12,600 Common Shares......................................................................................                            44,000 Retained Earnings...................................................................................                            65,000 Sales........................................................................................................                          410,000 Cost of Goods Sold................................................................................       128,000 Salaries Expense......................................................................................         53,000        Totals...................................................................................................
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014....
The following trial balance was taken from the books of Fisk Corporation on December 31, 2014. Account Debit Credit Cash $ 9,000 Accounts Receivable 40,000 Notes Receivable 10,000 Allowance for Doubtful Accounts $   1,800 Inventory 44,000 Prepaid Insurance 4,800 Equipment 110,000 Accumulated Depreciation--Equip. 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 75,000 Sales Revenue 260,000 Cost of Goods Sold 126,000 Salaries and wages Expense 50,000 Rent Expense     12,800 ________ Totals $406,600 $406,600 At year end, the following items...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT