Blue Spruce Company’s trial balance at December 31, 2019, is presented below. All 2019 transactions have...

Blue Spruce Company’s trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the trial balance.

	Debit	Credit
Cash	$26,000
Accounts Receivable	36,500
Notes Receivable	8,900
Interest Receivable	–0–
Inventory	36,200
Prepaid Insurance	3,780
Land	21,800
Buildings	132,000
Equipment	55,000
Patents	10,300
Allowance for Doubtful Accounts		$400
Accumulated Depreciation—Buildings		44,000
Accumulated Depreciation—Equipment		22,000
Accounts Payable		27,100
Salaries and Wages Payable		–0–
Unearned Rent Revenue		3,300
Notes Payable (due in 2020)		13,000
Interest Payable		–0–
Notes Payable (due after 2020)		36,000
Common Stock		46,500
Retained Earnings		57,580
Dividends	15,000
Sales Revenue		903,000
Interest Revenue		–0–
Rent Revenue		–0–
Gain on Disposal of Plant Assets		–0–
Bad Debts Expense	–0–
Cost of Goods Sold	640,000
Depreciation Expense	–0–
Insurance Expense	–0–
Interest Expense	–0–
Other Operating Expenses	61,400
Amortization Expense	–0–
Salaries and Wages Expense	106,000
Total	$1,152,880	$1,152,880

Unrecorded transactions:

1.		On May 1, 2019, Blue Spruce purchased equipment for $17,800 plus sales taxes of $1,400 (all paid in cash).
2.		On July 1, 2019, Blue Spruce sold for $3,600 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2019, was $2,000; 2019 depreciation prior to the sale of the equipment was $450.
3.		On December 31, 2019, Blue Spruce sold on account $5,400 of inventory that cost $3,200.
4.		Blue Spruce estimates that uncollectible accounts receivable at year-end is $4,000.
5.		The note receivable is a one-year, 8% note dated April 1, 2019. No interest has been recorded.
6.		The balance in prepaid insurance represents payment of a $3,780 6-month premium on September 1, 2019.
7.		The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
8.		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.
9.		The equipment purchased on May 1, 2019, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,100.
10.		The patent was acquired on January 1, 2019, and has a useful life of 10 years from that date.
11.		Unpaid salaries and wages at December 31, 2019, total $2,200.
12.		The unearned rent revenue of $3,300 was received on December 1, 2019, for 3 months’ rent.
13.		Both the short-term and long-term notes payable are dated January 1, 2019, and carry a 9% interest rate. All interest is payable in the next 12 months.

Prepare journal entries for the transactions listed above.

Solutions

Expert Solution

ekkarill92 answered 7 months ago

Next > < Previous

Related Solutions

Quigley Corporation's trial balance at December 31, 2017, is presented below. All 2017 transactions have been...

Quigley Corporation's trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below. Debit Credit Cash $ 25,500 Accounts Receivable 51,000 Inventory 22,700 Land 65,000 Buildings 95,000 Equipment 40,000 Allowance for Doubtful Accounts $ 450 Accumulated Depreciation—Buildings 30,000 Accumulated Depreciation—Equipment 14,400 Accounts Payable 19,300 Interest Payable -0- Dividends Payable -0- Unearned Rent Revenue 8,000 Bonds Payable (10%) 50,000 Common Stock ($10 par) 30,000 Paid-in Capital in Excess of Par—Common Stock...

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been...

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit Credit Cash $26,100 Accounts Receivable 59,000 Inventory 23,400 Land 66,800 Buildings 94,000 Equipment 30,000 Allowance for Doubtful Accounts $400 Accumulated Depreciation—Buildings 29,500 Accumulated Depreciation—Equipment 15,000 Accounts Payable 19,200 Interest Payable –0– Dividends Payable –0– Unearned Rent Revenue 7,200 Bonds Payable (10%) 46,000 Common Stock ($10 par) 32,000 Paid-in Capital in Excess of Par—Common Stock 6,400 Preferred...

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been...

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit Credit Cash $27,700 Accounts Receivable 54,000 Inventory 23,100 Land 65,800 Buildings 86,900 Equipment 31,000 Allowance for Doubtful Accounts $440 Accumulated Depreciation—Buildings 27,000 Accumulated Depreciation—Equipment 15,000 Accounts Payable 19,000 Interest Payable –0– Dividends Payable –0– Unearned Rent Revenue 8,000 Bonds Payable (10%) 50,000 Common Stock ($10 par) 32,000 Paid-in Capital in Excess of Par—Common Stock 6,400 Preferred...

Puzzle Corporation's preliminary Trial balance as of December 31, 2018 is presented below. All 2018 transactions...

Puzzle Corporation's preliminary Trial balance as of December 31, 2018 is presented below. All 2018 transactions have been recorded except for the items described below. Debit Credit Cash $ 29,636 Accounts Receivable 48,300 Inventory 20,423 Land 65,400 Buildings 125,000 Equipment 86,250 Allowance for Doubtful Accounts $ 735 Accumulated Depreciation-Buildings 24,600 Accumulated Depreciation-Equipment 34,200 Accounts Payable 16,785 Interest Payable 0 Dividends Payable 0 Unearned Rent Revenue 13,000 Income Tax Payable 0 Bonds Payable 0 Discount on Bonds Payable 0 Common Stock...

The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.

Exercise 3-19A Record closing entries and prepare a post-closing trial balance (LO3-6, 3-7) The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,400 Accounts Receivable 134,000 Prepaid Rent 4,400 Supplies 22,000 Equipment 240,000 ...

The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. ...

The December 31, 2021, adjusted trial balance for Fightin' Blue Hens Corporation is presented below. Accounts Debit Credit Cash $ 10,100 Accounts Receivable 131,000 Prepaid Rent 4,100 Supplies 20,500 Equipment 210,000 Accumulated Depreciation $ 116,000 Accounts Payable 10,100 Salaries Payable 9,100 Interest Payable 3,100 Notes Payable (due in two years) 21,000 Common Stock 110,000 Retained Earnings 41,000 Service Revenue 310,000 Salaries Expense 210,000 Rent Expense 10,500 Depreciation Expense 21,000 Interest Expense 3,100 Totals $ 620,300 $ 620,300 Exercise 3-16A...

Hassellhouf Company’s trial balance at December 31, 2020, is as follows. All 2020 transactions have been...

Hassellhouf Company’s trial balance at December 31, 2020, is as follows. All 2020 transactions have been recorded except for the items described following the trial balance. Debit Credit Cash $28,000 Accounts Receivable 35,000 Notes Receivable 8,300 Interest Receivable 0 Inventory 36,400 Prepaid Insurance 3,600 Land 20,600 Buildings 138,000 Equipment 61,200 Patents 10,600 Allowance for Doubtful Accounts $400 Accumulated Depreciation—Buildings 46,000 Accumulated Depreciation—Equipment 24,480 Accounts Payable 27,200 Salaries and Wages Payable 0 Unearned Rent Revenue 2,100 Notes Payable (due in 2018)...

Morgan Company’s balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December...

Morgan Company’s balance sheet at December 31, 2019, is presented below. MORGAN COMPANY Balance Sheet December 31, 2019 Cash $30,000 Accounts Payable $12,250 Inventory 30,500 Interest Payable 300 Prepaid Insurance 6,084 Notes Payable 60,000 Equipment 38,520 Owner’s Capital 32,554 $105,104 $105,104 During January 2020, the following transactions occurred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $300 interest on the note payable on January 1, 2020. The note is due December 31, 2021. 2. Morgan purchased $240,000 of...

Blue Spruce Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is...

Blue Spruce Corp. prepares quarterly financial statements. The post-closing trial balance at December 31, 2016, is presented below. BLUE SPRUCE CORP. Post-Closing Trial Balance December 31, 2016 Debit Credit Cash $21,390 Accounts Receivable 19,710 Allowance for Doubtful Accounts $1,060 Equipment 17,600 Accumulated Depreciation—Equipment 13,200 Buildings 88,000 Accumulated Depreciation—Buildings 13,200 Land 17,600 Accounts Payable 10,890 Common Stock 79,200 Retained Earnings 46,750 $164,300 $164,300 During the first quarter of 2017, the following transactions occurred: 1. ...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019 2018 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,300 ) (10,800 ) Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500 Total $111,000 $119,700 Additional information: 1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities occurred during...

Subjects