Question

Refer to E4– 9.
a. Cardon’s winterized (cleaned and covered) three boats for customers at the end of November, but did not prepare the bill of $ 2,700 for the service it provided until December.
b. On October 1, 2015, Cardon’s paid $ 1,200 to the local newspaper for an advertisement to run every Thursday for 12 weeks. All ads have been run except for three Thursdays in December to complete the 12- week contract.
c. On April 1, 2015, Cardon’s borrowed $ 300,000 at an annual interest rate of 4 percent to expand its boat storage facility. The loan requires Cardon’s to pay the interest quarterly until the note is repaid in three years. Cardon’s paid quarterly interest on July + and October 1, 2015.
d. The Kwan family paid Cardon’s $ 4,500 on November 1, 2015, to store its sailboat for the winter until May 1, 2016. Cardon’s credited the full amount to deferred storage revenue on November 1.
e. Cardon’s used boat- lifting equipment that cost $ 220,000; the estimated depreciation for fiscal year 2015 is $ 22,000.
f. Boat repair supplies on hand at December 1, 2014, totalled $ 16,500. Repair supplies purchased and debited to Supplies Inventory during the year amounted to $ 46,000. The year- end inventory count showed $ 12,400 of the supplies remaining on hand.
g. Wages earned by employees during November 2015, unpaid and unrecorded at November 30, 2015, amounted to $ 3,800. The next payroll date will be December 5, 2015.
Required:
For each of the transactions in E4– 9, indicate the amount and direction of the effects of the adjusting entry on the elements of the statement of financial position and statement of earnings. Use the following format: + for increase, – for decrease, and “ N” for no effect.


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  • CreatedAugust 04, 2015
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