Question
In: Accounting
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
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.
a. Insurance premium expired during the year, $14,000.
b. Estimated bad debts expense, 1.0% of net sales.
c. Inventory as of 12/31/2019 turned out to be $50,000.
d. 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
e. Six months’ rent of $60,000 was paid in advance on September 1, 2019 and charged to rent expense then.
f. 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.
g. Patents have been amortized by $10,000/year.
h. Utility bill of $2,000 for the month of December 2019 will be paid on its due date, January 10, 2020.
i. Salaries earned but not yet paid by December 31, 2019, $8,000.
j. 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
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| Coyote | ||
| Working for Adjusting Entry | Amount $ | Note |
| Insurance Premium paid | 24,000.00 | |
| Less: Expired | 14,000.00 | |
| Prepaid Insurance | 10,000.00 | |
| Rent paid | 60,000.00 | |
| Less: Expired for 4 months | 40,000.00 | |
| Prepaid rent | 20,000.00 | |
| Sales | 700,000.00 | |
| Less: Sales returns & allowance | (40,000.00) | |
| Less: Sales discount | (40,000.00) | |
| Net sales | 620,000.00 | A |
| Uncollectible % | 1% | B |
| Uncollectible amount | 6,200.00 | C=A*B |
| Less: Allowance for doubtful accounts | 1,000.00 | |
| Bad debt expense fro the year | 5,200.00 | |
| Inventory- opening balance | 70,000.00 | |
| Add: Purchases | 420,000.00 | |
| Less: Purchase returns & allowance | (20,000.00) | |
| Less: Inventory- Physical Balance | (50,000.00) | |
| Cost of goods sold | 420,000.00 | |
| Furniture and fixture | 210,000.00 | D |
| Life | 5.00 | E |
| Depreciation expense | 42,000.00 | F=D/E |
| Adjusting Entries | |||
| Event | Account | Debit $ | Credit $ |
| a. | Insurance Expense | 10,000.00 | |
| Prepaid Insurance | 10,000.00 | ||
| b. | Bad debt expense | 5,200.00 | |
| Allowance for doubtful account | 5,200.00 | ||
| c. | Cost of merchandise sold | 420,000.00 | |
| Inventory | 420,000.00 | ||
| d. | Supplies | 2,000.00 | |
| Supplies Expense | 2,000.00 | ||
| e. | Prepaid Rent | 20,000.00 | |
| Rent Expense | 20,000.00 | ||
| f. | Depreciation Expense- F & E | 42,000.00 | |
| Accumulated Depreciation- F & E | 42,000.00 | ||
| g. | Amortization Expense | 10,000.00 | |
| Patent | 10,000.00 | ||
| h. | Utilities Expense | 2,000.00 | |
| Accounts Payable | 2,000.00 | ||
| i. | Wages and Salaries Expense | 8,000.00 | |
| Wages and Salaries Payable | 8,000.00 |
| Income Statement | ||
| Particulars | Amount $ | Amount $ |
| Sales Revenue | 700,000.00 | |
| Less: Returns and allowances | (40,000.00) | |
| Less: Sales discount | (10,000.00) | |
| Net Sales | 650,000.00 | |
| Less: Cost of goods sold | ||
| Inventory- opening balance | 70,000.00 | |
| Add: Purchases | 420,000.00 | |
| Less: Purchase returns & allowance | (20,000.00) | |
| Less: Inventory- Physical Balance | (50,000.00) | |
| Cost of goods sold | 420,000.00 | |
| Gross Profit | 230,000.00 | |
| Less: Operating Expense | ||
| Selling expenses | 60,000.00 | |
| Advertising Expense | 30,000.00 | |
| Supplies Expense | 4,000.00 | |
| Insurance Expense | 14,000.00 | |
| Wages and Salary Expense | 98,000.00 | |
| Rent Expense | 40,000.00 | |
| Bad Debt Expense | 5,200.00 | |
| Depreciation Expense | 42,000.00 | |
| Amortization Expense | 10,000.00 | |
| Utilities Expense | 2,000.00 | |
| Operating Expense | 305,200.00 | |
| Operating Income | (75,200.00) | |
 ekkarill92 answered 2 years agoRelated SolutionsP1. 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
...
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...
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