Goff Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows,...
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Goff Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. Debit $32,700 760 Credit Further Information As reported on December 31 bank statement. Based on count, only $280 of supplies still exist. Of this amount, $3,800 was received for December lessons and $580 for January lessons. Employees were paid $1,800 for 10 days of work through December 28. They have not yet been paid for work on Account Names Cash Supplies Deferred Revenue $ 4,380 Salaries and Wages payable December 29 and 30. The company has paid last year's income tax but not this year's tax. The company has not paid the $110 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time they are provided, but some customers pay in advance. Employees worked through December 30, but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $110 of interest owed on its notes payable for the current period. The company has an average tax rate of 30%. Income Tax Payable Interest Payable Notes Payable (long-term) 13,200 1,000 Common Stock Retained Earnings Service Revenue 3,800 51,180 Salaries and Wages Expense 36,900 Supplies Expense Interest Expense 3,200 Income Tax Expense Totals $73,560 $73,560 Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair. Balance sheet account Adj. (1) Supplies (2) Deferred Revenue (3) Salaries and Wages Payable Income Tax Payable (5) Interest Payable Related income statement account Amount |Supplies Expense Service Revenue Salaries and Wages Expense Income Tax Expense Interest Expense 24 2,440 55,560 (4) Goff Academy, Inc., provides private golf lessons. Its unadjusted trial balance at December 31, 2018, follows, along with information about selected accounts. Debit $32,700 760 Credit Further Information As reported on December 31 bank statement. Based on count, only $280 of supplies still exist. Of this amount, $3,800 was received for December lessons and $580 for January lessons. Employees were paid $1,800 for 10 days of work through December 28. They have not yet been paid for work on Account Names Cash Supplies Deferred Revenue $ 4,380 Salaries and Wages payable December 29 and 30. The company has paid last year's income tax but not this year's tax. The company has not paid the $110 of interest owed on its notes payable for the current period. This one-year note was taken out this year on December 1. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Most customers pay cash for lessons each time they are provided, but some customers pay in advance. Employees worked through December 30, but did not work on December 31. This is the cost of supplies used through November 30. The company has not paid the $110 of interest owed on its notes payable for the current period. The company has an average tax rate of 30%. Income Tax Payable Interest Payable Notes Payable (long-term) 13,200 1,000 Common Stock Retained Earnings Service Revenue 3,800 51,180 Salaries and Wages Expense 36,900 Supplies Expense Interest Expense 3,200 Income Tax Expense Totals $73,560 $73,560 Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair. Balance sheet account Adj. (1) Supplies (2) Deferred Revenue (3) Salaries and Wages Payable Income Tax Payable (5) Interest Payable Related income statement account Amount |Supplies Expense Service Revenue Salaries and Wages Expense Income Tax Expense Interest Expense 24 2,440 55,560 (4)
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Calculate following Adj Balance sheet account Related income statement ac... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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