Question

In: Accounting

1. Dodie Company completed its first year of operations on December 31. All of the year's...

1. Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following:

      a. At year-end, employees earned wages of $4,200, which will be paid on the next payroll date in January of next year.

      b. At year-end, the company had earned interest revenue of $1,600. The cash will be collected March 1 of the next year.

2. A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:

     a. A two-year insurance premium of $5,040 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.

     b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.

Shipping supplies on hand, January 1 of the current year $ 13,400
Purchases of shipping supplies during the current year 77,000
Shipping supplies on hand, counted on December 31 of the current year 21,000

Required:

For each of the transactions in Dodie Company and A+T Williamson Company, indicate the amount and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the table below, indicate + for increase and − for decrease. (Enter negative amounts with a minus sign.)

Solutions

Expert Solution

for formulas and calculations, refer to the image below -

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

1. Dodie Company completed its first year of operations on December 31. All of the year's...
1. Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following:       a. At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year.       b. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year. 2. A+T Williamson Company is making adjusting entries for the year...
A) On December 31, 2019, Pack-INT-Deliver Company completed its first year of operations. The following information...
A) On December 31, 2019, Pack-INT-Deliver Company completed its first year of operations. The following information has been provided for the year: a. Sold packing supplies for $30,000 and provided $280,000 of delivery services. b. All packing supplies sales were for cash. c. Collected $212,000 of delivery service revenue. d. Paid $15,000 cash to rent packing equipment, with $10,000 for rental in 2019 and the remaining amount for rental in 2020. e. Spent $4,000 cash to repair delivery equipment during...
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1....
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1. Net income for the year was $570. During the year, equipment costing $800 was purchased when the company paid cash of $640 and issued common shares worth $160. Near the end of the year, equipment costing $60 with accumulated depreciation of $16 was sold for $54. At the end of the year, accounts receivable was $250, accounts payable was $36 and accumulated depreciation was...
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1....
Part A: Ranier Ltd. has just completed its first year of operations on December 31, 20X1. Net income for the year was $570. During the year, equipment costing $800 was purchased when the company paid cash of $640 and issued common shares worth $160. Near the end of the year, equipment costing $60 with accumulated depreciation of $16 was sold for $54. At the end of the year, accounts receivable was $250, accounts payable was $36 and accumulated depreciation was...
At the end of its first year of operations on December 31, 2018, the Hondo Company...
At the end of its first year of operations on December 31, 2018, the Hondo Company reported the following information for the year: (Assume any deferred tax assets are more likely than not to be realized). Pretax income for financial reporting purposes $360,000 Municipal bond interest revenue on State of Texas bonds 12,000 Warranty expense for financial reporting purposes Warranty repair costs during period 30,000 10,000 Excess of MACRS Depreciation for tax purposes above straight line for financial reporting purposes...
At the end of its first year of operations on December 31, 2018, the Skyway Company...
At the end of its first year of operations on December 31, 2018, the Skyway Company reported taxable income of $30,000 and a pretax financial loss of $40,000. Differences between taxable income and pretax financial income included:Environmental fine from the EPA = $20,000Warranty costs expensed for accounting purposes in excess of cash paid for warranty costs = $50,000(Those warranty costs are expected to be paid in 2019.) The enacted tax rates for 2018 and 2019 are 30% and 34%, respectively.REQUIRED:(a)...
Liang Company began operations in Year 1. During its first two years, the company completed a...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,354,000 of merchandise (that had cost $981,600) on credit terms n/30. b. Wrote off $21,700 of uncollectible accounts receivable. c. Received $665,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.5%...
Liang Company began operations in Year 1. During its first two years, the company completed a...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,345,434 of merchandise (that had cost $975,000) on credit, terms n/30. Wrote off $18,300 of uncollectible accounts receivable. Received $669,200 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would...
Liang Company began operations in Year 1. During its first two years, the company completed a...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,352,200 of merchandise (that had cost $980,100) on credit, terms n/30. Wrote off $21,900 of uncollectible accounts receivable. Received $674,600 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would...
Liang Company began operations in Year 1. During its first two years, the company completed a...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,349,600 of merchandise (that had cost $977,600) on credit, terms n/30. b. Wrote off $19,500 of uncollectible accounts receivable. c. Received $669,000 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.10%...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT