Required: Prepare the proper ADJUSTING journal entries for the following events. Also, prepare a balance sheet after adjusting entries have been made.
The unadjusted trial balance for Tahini & Jam Inc. appears below:
Tahini & Jam Inc.
Unadjusted Trial Balance
December 31, 2020
Debit Credit
Cash $75,500
Accounts receivable 5,000
Prepaid rent 1,000
Prepaid insurance 15,000
Supplies 3,000
Equipment 40,000
Accumulated depreciation-equipment $4,000
Accounts payable 11,000
Bank loan payable 10,000
Unearned service revenue 10,500
Common shares 48,250
Retained earnings 32,000
Dividends 5,000
Service revenue 44,600
Salary expense 7,200
Utilities expense 1,200
Rent expense 5,250
Advertising expense 2,200 ________
$160,350 $160,350
Additional data is as follows. Record the adjusting entry below the information.
Dr.
Cr.
Dr
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Prepare a balance sheet based on the unadjusted trial balance and the adjusting entries.
Record your answers below (in white).
Tahini & Jam Inc.
Balance Sheet
(As at December 31, 2020)
Prepare balance sheet here.
Tahini & Jam Inc.
Income Statement
(for the year ended
December 31, 2020)
Prepare balance sheet here.
In: Accounting
In: Operations Management
Share two examples of barriers to innovation you have encountered in organizations you have worked in. Take between 150-250 words to do so, so that I can all understand what was being attempted and what got in the way.
2. What can governments in canada (federal, provincial, and municipal) do to foster innovation that they are not doing right now?
In: Operations Management
Reflection on the complex subject of creativity, discovery, and innovation, what do you project for future challenges, trends, and opportunities for organizations? Will organizations embrace innovation or revert to production? Should they and will it be done the same as now or in a different way? Where are we going when it comes to being an innovative society? Support at least one of your ideas with one academic reference, appropriately cited.
In: Operations Management
P4-20: Integrative: Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
The following financial data are also available:
|
Assets |
Liabilities and stockholders’ equity |
|||
|
Red Queen Restaurants Income Statement for the Year Ended December 31, 2019 |
||||
|
Sales revenue |
$800,000 |
|||
|
Less: Cost of goods sold |
600,000 |
|||
|
Gross profits |
$200,000 |
|||
|
Less: Operating expenses |
100,000 |
|||
|
Net profits before taxes |
$100,000 |
|||
|
Less: Taxes (rate = 21%) |
21,000 |
|||
|
Net profits after taxes |
$ 79,000 |
|||
|
Less: Cash dividends |
20,000 |
|||
|
To retained earnings |
$ 59,000 |
|||
|
Red Queen Restaurants Balance Sheet December 31, 2019 |
||||
|
Cash |
$ 32,000 |
Accounts payable |
$100,000 |
|
|
Marketable securities |
18,000 |
Taxes payable |
20,000 |
|
|
Accounts receivable |
150,000 |
Other current liabilities |
5,000 |
|
|
Inventories |
100,000 |
Total current liabilities |
$125,000 |
|
|
Total current assets |
$300,000 |
Long-term debt |
200,000 |
|
|
Net fixed assets |
350,000 |
Total liabilities |
$325,000 |
|
|
Total assets |
$650,000 |
Common stock |
150,000 |
|
|
Retained earnings |
175,000 |
|||
|
Total liabilities and stockholders’ equity |
$650,000 |
|||
Please show your work. It does not help me if you just provide the answers.
In: Finance
Integrative: Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
The following financial data are also available:
The firm has estimated that its sales for 2020 will be $900,000.
The firm expects to pay $35,000 in cash dividends in 2020.
The firm wishes to maintain a minimum cash balance of $30,000.
Accounts receivable represent approximately 18% of annual sales.
The firm’s ending inventory will change directly with changes in sales in 2020.
A new machine costing $42,000 will be purchased in 2020. Total depreciation for 2020 will be $17,000.
Accounts payable will change directly in response to changes in sales in 2020.
Taxes payable will equal one-fourth of the tax liability on the pro forma income statement.
Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged.
Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method.
Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach.
Analyze these statements, and discuss the resulting external financing required.
Red Queen Restaurants Income Statement for the Year Ended December 31, 2019
Sales revenue $800,000 Less: Cost of goods sold 600,000 Gross profits $200,000 Less: Operating expenses 100,000 Net profits before taxes $100,000 Less: Taxes (rate = 21%) 21,000 Net profits after taxes $ 79,000 Less: Cash dividends 20,000 To retained earnings $ 59,000Red Queen Restaurants Balance Sheet December 31, 2019
Assets Liabilities and stockholders’ equity Cash $ 32,000 Accounts payable $100,000 Marketable securities 18,000 Taxes payable 20,000 Accounts receivable 150,000 Other current liabilities 5,000 Inventories 100,000 Total current liabilities $125,000 Total current assets $300,000 Long-term debt 200,000 Net fixed assets 350,000 Total liabilities $325,000 Total assets $650,000 Common stock 150,000 Retained earnings 175,000 Total liabilities and stockholders’ equity $650,000LG 5
In: Accounting
Integrative: Pro forma statements Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
The following financial data are also available:
The firm has estimated that its sales for 2020 will be $900,000.
The firm expects to pay $35,000 in cash dividends in 2020.
The firm wishes to maintain a minimum cash balance of $30,000.
Accounts receivable represent approximately 18% of annual sales.
The firm’s ending inventory will change directly with changes in sales in 2020.
A new machine costing $42,000 will be purchased in 2020. Total depreciation for 2020 will be $17,000.
Accounts payable will change directly in response to changes in sales in 2020.
Taxes payable will equal one-fourth of the tax liability on the pro forma income statement.
Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged.
Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method.
Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach.
Analyze these statements, and discuss the resulting external financing required.
Red Queen Restaurants Income Statement for the Year Ended December 31, 2019
Sales revenue $800,000 Less: Cost of goods sold 600,000 Gross profits $200,000 Less: Operating expenses 100,000 Net profits before taxes $100,000 Less: Taxes (rate = 21%) 21,000 Net profits after taxes $ 79,000 Less: Cash dividends 20,000 To retained earnings $ 59,000Red Queen Restaurants Balance Sheet December 31, 2019
Assets Liabilities and stockholders’ equity Cash $ 32,000 Accounts payable $100,000 Marketable securities 18,000 Taxes payable 20,000 Accounts receivable 150,000 Other current liabilities 5,000 Inventories 100,000 Total current liabilities $125,000 Total current assets $300,000 Long-term debt 200,000 Net fixed assets 350,000 Total liabilities $325,000 Total assets $650,000 Common stock 150,000 Retained earnings 175,000 Total liabilities and stockholders’ equity $650,000In: Accounting
Red Queen Restaurants wishes to prepare financial plans. Use the financial statements and the other information provided below to prepare the financial plans.
Red Queen Restaurants Income Statement for the Year Ended
December 31, 2019
Sales revenue $799,000
Less: Cost of goods sold 599,000
Gross profits $200,000
Less: Operating expenses 101,000
Net profits before taxes $99,000
Less: Taxes (21%) 20,790
Net profits after taxes $78,210
Less: Cash dividends 20,500
To retained earnings $57,710
Red Queen Restaurants Balance
Sheet December 31, 2019
Assets Liabilities and Stockholders' Equity
Cash $32,700 Accounts payable
$99,900
Marketable securities 17,800
Taxes payable 20,600
Accounts receivable 149,800
Other current liabilities
4,500
Inventories 100,400 Total current
liabilities $125,000
Total current assets $300,700
Long-term debt $199,700
Net fixed assets 349,500 Common stock
$150,500
Retained earnings $175,000
Total assets $650,200 Total liabilities and equity
$650,200
The following financial data are also available:
(1) The firm has estimated that its sales for 2020 will be $899,700.
(2) The firm expects to pay $34,400 in cash dividends in 2020.
(3) The firm wishes to maintain a minimum cash balance of $31,500.
(4) Accounts receivable represent approximately 21% of annual sales.
(5) The firm's ending inventory will change directly with changes in sales 2020.
(6) A new machine costing $43,100will be purchased in 2020.Total depreciation for 2020 will be $15,800.
(7) Accounts payable will change directly in response to changes in sales in 2020.
(8) Taxes payable will equal one-fourth of the tax liability on the pro forma income statement.
(9) Marketable securities, other current liabilities, long-term debt, and common stock will remain unchanged.
Questions:
a. Prepare a pro forma income statement for the year ended December 31, 2020, using the percent-of-sales method.
b. Prepare a pro forma balance sheet dated December 31, 2020, using the judgmental approach.
c. Analyze these statements, and discuss the resulting external financing required.
In: Finance
Question 7
The following information is available for Skysong Corporation
for 2020.
| 1. | Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. | |
| 2. | Interest received on municipal bonds was $9,600. | |
| 3. | Rent collected in advance on January 1, 2020, totaled $59,700 for a 3-year period. Of this amount, $39,800 was reported as unearned at December 31, 2020, for book purposes. | |
| 4. | The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. | |
| 5. | Income taxes of $333,000 are due per the tax return for 2020. | |
| 6. | No deferred taxes existed at the beginning of 2020. |
1. Compute taxable income for 2020.
2. Compute pretax financial income for 2020.
3. Prepare the journal entries to record income tax expense,
deferred income taxes, and income taxes payable for 2020 and 2021.
Assume taxable income was $1,063,000 in 2021. (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.)
4. Prepare the income tax expense section of the income
statement for 2020, beginning with “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
In: Accounting
At January 1, 2020, the credit balance of Whispering Winds Corp.’s Allowance for Doubtful Accounts was $401,000. During 2020, the bad debt expense entry was based on a percentage of net credit sales. Net sales for 2020 were $80 million, of which 90% were on account. Based on the information available at the time, the 2020 bad debt expense was estimated to be 0.75% of net credit sales. During 2020, uncollectible receivables amounting to $508,500 were written off against the allowance for doubtful accounts. The company has estimated that at December 31, 2020, based on a review of the aged accounts receivable, the allowance for doubtful accounts would be properly measured at $530,500.
Prepare a schedule calculating the balance in Whispering Winds
Corp.’s Allowance for Doubtful Accounts at December 31,
2020.
|
Balance, January 1, 2020 |
||
|---|---|---|
|
Bad debt expense accrual |
||
| enter a subtotal of the two previous amounts | ||
|
Uncollectible receivables written off |
||
|
Balance, December 31, 2020 before adjustment |
enter a total amount for the first part | |
|
Allowance adjustment |
||
|
Balance, December 31, 2020 |
Prepare any necessary journal entry at year end to adjust the
allowance for doubtful accounts to the required balance.
(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.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
|
enter an account title |
In: Accounting