Question

In: Accounting

Account Debit Credit Cash 31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128...

Account Debit Credit
Cash 31,680
Accounts Receivable 52,992
Notes Receivable 14,400
Interest Receivable 0
Inventory 52,128
Prepaid Insurance 5,184
Land 28,800
Buildings 216,000
Equipment 86,400
Patent 12,960
Allowance for Doubtful Accounts 720
Accumulated Depreciation—Buildings 72,000
Accumulated Depreciation—Equipment 34,560
Accounts Payable 39,312
Salaries and Wages Payable 0
Notes Payable (due April 30, 2023) 15,840
Income Taxes Payable 0
Interest Payable 0
Notes Payable (due in 2028) 50,400
Common Stock 72,000
Retained Earnings 91,584
Dividends 17,280
Sales Revenue 1,296,000
Interest Revenue 0
Gain on Disposal of Plant Assets 0
Bad Debt Expense 0
Cost of Goods Sold 907,200
Depreciation Expense 0
Income Tax Expense 0
Insurance Expense 0
Interest Expense 0
Other Operating Expenses 88,992
Amortization Expense 0
Salaries and Wages Expense 158,400
Totals 1,672,416 1,672,416

The following transactions occurred during December.

Dec. 2 Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash).
Dec. 2 Novak sold for $5,040 equipment which originally cost $7,200. Accumulated depreciation on this equipment at January 1, 2022, was $2,592; 2022 depreciation prior to the sale of equipment was $1,188.
Dec. 15
Novak sold for $7,200 on account inventory that cost $5,040.
Dec. 23 Salaries and wages of $9,504 were paid.

Adjustment data:

1
Novak estimates that uncollectible accounts receivable at year-end are $5,760.
2
The note receivable is a one-year, 8% note dated April 1, 2022. No interest has been recorded.
3
The balance in prepaid insurance represents payment of a $5,184, 6-month premium on September 1, 2022.
4
The building is being depreciated using the straight-line method over 30 years. The salvage value is $43,200.
5
The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6
The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,592.
7
The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date.
8
Unpaid salaries at December 31, 2022, total $3,168.
9
Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. All interest is payable in the next 12 months.
10
Income tax expense was $21,600. It was unpaid at December 31.

Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

HANSON PRODUCTS COMPANY Adjusted Trial Balance December 31, 2018 Debit Credit Cash $    14,400 Accounts receivable...
HANSON PRODUCTS COMPANY Adjusted Trial Balance December 31, 2018 Debit Credit Cash $    14,400 Accounts receivable 35,000 Allowance for doubtful accounts 800 Merchandise inventory 50,400 Office supplies 900 Prepaid Insurance 1,200 Equipment 60,000 Accumulated depreciation – equipment 25,000 Accounts payable 12,000 Notes payable 10,000 Common stock 40,000 Retained earnings 22,250 Dividends 21,000 Net Sales 320,300 Cost of goods sold 205,000 Sales salaries expense 32,500 Depreciation expense – equipment 7,500 Office supplies expense 1,300 Interest expense 600 Bad Debts Expense 200...
Accounts Debit Credit Cash $ 25,400 Accounts Receivable 46,800 Allowance for Uncollectible Accounts $ 4,500 Inventory...
Accounts Debit Credit Cash $ 25,400 Accounts Receivable 46,800 Allowance for Uncollectible Accounts $ 4,500 Inventory 20,300 Land 49,000 Equipment 16,500 Accumulated Depreciation 1,800 Accounts Payable 28,800 Notes Payable (6%, due April 1, 2022) 53,000 Common Stock 38,000 Retained Earnings 31,900 Totals $ 158,000 $ 158,000 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $8,600. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account,...
Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land...
Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land 62000 Equipment 23000 Accumulated Depreciation 3100 Accounts payable 30,100 Notes payable(6%,due april 1, 2019) 66,000 Common Stock 51,000 Retained Earnings 26,700 Totals 182,700 182,700 January 2. Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date. January 6. Purchase additional inventory on account, $163,000. January 15. Firework sales for the first half of the month total...
A company has the following adjusted trial balance: Account Debit Credit Cash $1100​ ​ Accounts Receivable...
A company has the following adjusted trial balance: Account Debit Credit Cash $1100​ ​ Accounts Receivable 900​ ​ Inventory 1800​ ​ Supplies 2000​ ​ Prepaid Rent 400​ ​ Land 6500​ ​ Building 39,800​ ​ Accumulated Depreciation—Building ​ $8000​ Accounts Payable ​ 7600​ Unearned Revenue ​ 4300​ Notes Payable, due 2020 ​ 2300​ Common Stock ​ 6400​ Retained Earnings ​ 2700​ Dividends 800​ ​ Service Revenue ​ 33,800​ Rent Expense 1300​ ​ Supplies Expense 1100​ ​ Salaries Expense 6200​ ​ Depreciation...
Assets Liabilities & Owners’ Equity Cash $500,000 Accounts Payable 0 Accounts Receivable $550,000  Notes Payable $600,000 Inventory...
Assets Liabilities & Owners’ Equity Cash $500,000 Accounts Payable 0 Accounts Receivable $550,000  Notes Payable $600,000 Inventory $750,000 Accruals $400,000 Total Current Assets $1,800,000 Total Current Liabilities 1,000,000 Net Plant & Equip $6,200,000 Long-Term Debt $4,000,000 Total Debt $5,000,000 Retained Earnings $1,500,000 Stockholders’ Equity $1,500,000 Total Equity 3,000,000 Total Assets $8,000,000 Total Liabilities & Owners’ Equity $8,000,000 You currently work for Capital One Financial. The firm is interested in pursuing a new banking project, but they are unsure of where and...
Account Title Debit Credit Cash $ 6,800 Accounts receivable 14,000 Office supplies 7,233 Trucks 196,000 Accumulated...
Account Title Debit Credit Cash $ 6,800 Accounts receivable 14,000 Office supplies 7,233 Trucks 196,000 Accumulated depreciation—Trucks $ 40,376 Land 50,000 Accounts payable 10,800 Interest payable 4,000 Long-term notes payable 35,000 K. Wilson, Capital 204,883 K. Wilson, Withdrawals 29,000 Trucking fees earned 126,000 Depreciation expense—Trucks 26,043 Salaries expense 61,674 Office supplies expense 19,000 Repairs expense—Trucks 11,309 Totals $ 421,059 $ 421,059 Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2015.
Account Title Debit Credit Cash $ 6,300 Accounts receivable 27,000 Office supplies 7,975 Trucks 192,000 Accumulated...
Account Title Debit Credit Cash $ 6,300 Accounts receivable 27,000 Office supplies 7,975 Trucks 192,000 Accumulated depreciation—Trucks $ 39,552 Land 44,000 Accounts payable 10,300 Interest payable 15,000 Long-term notes payable 60,000 K. Wilson, Capital 186,409 K. Wilson, Withdrawals 40,000 Trucking fees earned 126,000 Depreciation expense—Trucks 25,511 Salaries expense 68,005 Office supplies expense 14,000 Repairs expense—Trucks 12,470 Totals $ 437,261 $ 437,261    Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31....
Account Title Debit Credit Cash $ 6,300 Accounts receivable 27,000 Office supplies 7,975 Trucks 192,000 Accumulated...
Account Title Debit Credit Cash $ 6,300 Accounts receivable 27,000 Office supplies 7,975 Trucks 192,000 Accumulated depreciation—Trucks $ 39,552 Land 44,000 Accounts payable 10,300 Interest payable 15,000 Long-term notes payable 60,000 K. Wilson, Capital 186,409 K. Wilson, Withdrawals 40,000 Trucking fees earned 126,000 Depreciation expense—Trucks 25,511 Salaries expense 68,005 Office supplies expense 14,000 Repairs expense—Trucks 12,470 Totals $ 437,261 $ 437,261    Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31....
Account Title Debit Credit   Cash $ 5,000   Accounts receivable 14,500   Office supplies 7,618   Trucks 191,000   Accumulated...
Account Title Debit Credit   Cash $ 5,000   Accounts receivable 14,500   Office supplies 7,618   Trucks 191,000   Accumulated depreciation—Trucks $ 39,346   Land 47,000   Accounts payable 9,000   Interest payable 9,000   Long-term notes payable 42,000   K. Wilson, Capital 188,017   K. Wilson, Withdrawals 28,000   Trucking fees earned 122,000   Depreciation expense—Trucks 25,378   Salaries expense 64,956   Office supplies expense 14,000   Repairs expense—Trucks 11,911   Totals $ 409,363 $ 409,363    Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31,...
  Account Title Debit Credit   Cash $ 9,800   Accounts receivable 14,000   Office supplies 8,223   Trucks 152,000   Accumulated...
  Account Title Debit Credit   Cash $ 9,800   Accounts receivable 14,000   Office supplies 8,223   Trucks 152,000   Accumulated depreciation—Trucks $ 31,312   Land 40,000   Accounts payable 13,800   Interest payable 16,000   Long-term notes payable 37,000   K. Wilson, Capital 145,080   K. Wilson, Withdrawals 32,000   Trucking fees earned 121,000   Depreciation expense—Trucks 20,196   Salaries expense 70,116   Office supplies expense 5,000   Repairs expense—Trucks 12,857   Totals $ 364,192 $ 364,192    Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT