December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory...

  

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December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory Prepaid Advertising Supplies Accounts Payable Unearned Revenue Long-Term Note Payable Common Stock Retained Earnings 1,900 10,000 1,200 4,200 14,200 12,000 7,000 72,900 28,800 Sales Revenue Cost of Goods Sold Wages Expense Utility Expense 74,200 40,200 10,700 3,400 Advertising Expense Totals Adjusting & Other Entries: 20,900 211,000 211,000 December 31: In reviewing the bank statement, we find that during December, $2,100 in revenue was incorrectly debited to inventory instead of cash (the credit was correct). December 31: Determine that we earned (but haven't received) $21,300 in interest revenue on our savings account during the year. December 31: We earned $9,900 in sweets sales revenue during December 2030 that was paid for in advance by our customers. The cost of those sweets was $3,900. Prepare entries to record both the sale and cost of goods sold. Record both entries. December 31: Entire year's advertising ($1,200 per month) was paid in advance on January 1, 2030 (recorded in January)-one month of Prepaid Advertising remains to be recorded as Advertising Expense. December 31: Determined that $3,000 of supplies were used during the year. December 31: December utilities are $1,999. The bill will be paid in January 2031. Utilities Expense and Utilities Payable should be recorded. December 31: The company has not recorded bad debt expense for 2030. Sinfully uses the Aging (or %) of Receivables approach and estimates that the ending balance in the Allowance for Bad Debts should be $5,900 (Hint: Look at Chapter 8 notes - Aging or % of Receivables approach). December 31: The long-term note payable was recorded on August 1, 2030. The interest and the note are due on July 31, 2035. Interest rate is 9.5%. Record 2030 interest expense. December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) - use this tax # to record the final adjusting entry for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note The taxes will be paid in March 2031. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $12,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) – use this tax # to record the final adjusting entry - for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note → The taxes will be paid in March 2026. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $5,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). 3 December 31, 2030 Accounts Debit Credit Cash Accounts Receivable 105,800 14,600 Allowance for Bad Debts Inventory Prepaid Advertising Supplies Accounts Payable Unearned Revenue Long-Term Note Payable Common Stock Retained Earnings 1,900 10,000 1,200 4,200 14,200 12,000 7,000 72,900 28,800 Sales Revenue Cost of Goods Sold Wages Expense Utility Expense 74,200 40,200 10,700 3,400 Advertising Expense Totals Adjusting & Other Entries: 20,900 211,000 211,000 December 31: In reviewing the bank statement, we find that during December, $2,100 in revenue was incorrectly debited to inventory instead of cash (the credit was correct). December 31: Determine that we earned (but haven't received) $21,300 in interest revenue on our savings account during the year. December 31: We earned $9,900 in sweets sales revenue during December 2030 that was paid for in advance by our customers. The cost of those sweets was $3,900. Prepare entries to record both the sale and cost of goods sold. Record both entries. December 31: Entire year's advertising ($1,200 per month) was paid in advance on January 1, 2030 (recorded in January)-one month of Prepaid Advertising remains to be recorded as Advertising Expense. December 31: Determined that $3,000 of supplies were used during the year. December 31: December utilities are $1,999. The bill will be paid in January 2031. Utilities Expense and Utilities Payable should be recorded. December 31: The company has not recorded bad debt expense for 2030. Sinfully uses the Aging (or %) of Receivables approach and estimates that the ending balance in the Allowance for Bad Debts should be $5,900 (Hint: Look at Chapter 8 notes - Aging or % of Receivables approach). December 31: The long-term note payable was recorded on August 1, 2030. The interest and the note are due on July 31, 2035. Interest rate is 9.5%. Record 2030 interest expense. December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) - use this tax # to record the final adjusting entry for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note The taxes will be paid in March 2031. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $12,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). December 31: Calculate Net Income Before Taxes and then record income taxes as 35% of this number (use the Multiple-Step Income Statement) – use this tax # to record the final adjusting entry - for Income Tax Expense & Income Tax Payable AND as the Income Tax Expense figure in your Multiple-Step Income Statement. Note → The taxes will be paid in March 2026. December 31: The bookkeeper forgot to enter a journal entry into the system. Therefore, you must also record an entry for a $5,000 dividend payment that the company made to its shareholders. (Debit Dividends & Credit Cash). This entry will not affect the tax entry above, as Dividends are not recorded on the Income Statement (but instead reduce RE on the Statement of RE). 3

Answer rating: 100% (QA)

1 Correcting Revenue Entry This adjustment corrects the misclassification of revenue Revenue of 2100 was incorrectly debited to Inventory instead of Cash To correct this Debit Inventory 2100 To reduce ... View the full answer