Post the adjusting entries for Our Favorite Store in the Adjusted Trial Balance Included are the adjusting
Fantastic news! We've Found the answer you've been seeking!
Question:
Post the adjusting entries for Our Favorite Store in the Adjusted Trial Balance
Included are the adjusting entries needed to be made, along with the General Journal from the original unadjusted entries, and the unadjusted trial balance.
Transcribed Image Text:
Information for Adjusting Entries on December 31, 2021 1 An aging of accounts receivable revealed that 2% of accounts receivable are uncollectible. 2 Depreciation Expense: Straight Line Depreciation is used. You will need to think about this carefully (a) For equipment purchased PRIOR to 2021, the equipment has a $10,000 salvage value and a useful life of 9 years. (b) For equipment purchased DURING 2021, the equipment has an $8,000 salvage value and a 9-year useful life. Pre-paid rent needs to be adjusted. Assume the beginning balance of pre-paid rent represented rent from 3 January 1 to October 1. 4 Salaries accrued but not yet paid are $14,000. 5 Accrue the interest on the note payable that was given for the purchase of equipment. 6 Utilities owed but not yet paid are $2,200. 7 Supplies on hand are $675. The income tax rate is 25% of income before taxes (note - you will need to calculate income before taxes before 8 you can make this last adjusting entry!). Information for Adjusting Entries on December 31, 2021 1 An aging of accounts receivable revealed that 2% of accounts receivable are uncollectible. 2 Depreciation Expense: Straight Line Depreciation is used. You will need to think about this carefully (a) For equipment purchased PRIOR to 2021, the equipment has a $10,000 salvage value and a useful life of 9 years. (b) For equipment purchased DURING 2021, the equipment has an $8,000 salvage value and a 9-year useful life. Pre-paid rent needs to be adjusted. Assume the beginning balance of pre-paid rent represented rent from 3 January 1 to October 1. 4 Salaries accrued but not yet paid are $14,000. 5 Accrue the interest on the note payable that was given for the purchase of equipment. 6 Utilities owed but not yet paid are $2,200. 7 Supplies on hand are $675. The income tax rate is 25% of income before taxes (note - you will need to calculate income before taxes before 8 you can make this last adjusting entry!).
Expert Answer:
Answer rating: 100% (QA)
WN Computation of income tax TRADING ACCOUNT PARTICULAR AMOUNT PARTICULAR AMOUNT cost of good sold 2... View the full answer
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
The following accounts appear in an adjusted trial balance of Resolve Consulting. Indicate whether each account would be reported in the (a) Current asset; (b) Property, plant, and equipment; (c)...
-
The following accounts appear in an adjusted trial balance of Pilot Consulting. Indicate whether each account would be reported in the (a) Current asset: (b) Property, plant, and equipment; (c)...
-
The following accounts appear in an adjusted trial balance of Ramrod Consulting. Indicate whether each account would be reported in the (a) Current asset; (b) Property, plant, and equipment; (c)...
-
Of the following data storage technologies: Permanent Data Storage COBOL Hierarchical DBMS Network DBMS Relational DBMS Object-oriented DBMS XML a. Which requires the most understanding about how the...
-
Erin Chang, an employee of Solutions Company, worked 48 hours during the week of October 11 through 17. Her rate of pay is $ 17.50 per hour, and she receives time- and- a- half for all work in excess...
-
Use the shell method to find the volumes of the solids generated by revolving the regions bounded by the curves and lines about the y-axis. y = 2x - 1, y = x, x = 0
-
Express the following \(n\) th-order differential equation as a system of \(n\) first-order differential equations: \[a_{n} \frac{d^{n} x}{d t^{n}}+a_{n-1} \frac{d^{n-1} x}{d t^{n-1}}+\cdots+a_{1}...
-
On October 10, the stockholders equity of Sherman Systems appears as follows: Common stock $ 10 par value, 72,000 shares authorized, issued, and outstanding . . . . . . . . . . . . . . . . . . $...
-
Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the...
-
Michael and Jeanette Boyds Tax Return Michael D. and Jeanette S. Boyd live with their family at the Rock Glen House Bed & Breakfast, which Michael operates. The Bed & Breakfast (B&B) is...
-
With reference to Neil Patel, content marketing is a long-term strategy that focuses on building strong relationships with your target audience by consistently delivering high-quality, relevant...
-
Worldwide Communication Ltd. is a trading company selling computer accessories. After the company's financial report has come out on December 31, 2021 with the below information: Dec. 31, 2021 Dec....
-
Assume there are only three risky assets in which to invest, A, B and C. The expected return and standard deviation of return of asset A are 0.08 and 0.04, respectively. Similarly, the expected...
-
The company is Walmart and show your reference! SWOT analysis thoroughly addresses the strengths, weaknesses, opportunities, and threats of the corporation, assessing how the company might maximize...
-
Next, in your initial post, address the following: NFL teams play fewer games than any other major U.S. professional sport league, which traditionally would mean fewer opportunities for revenue. What...
-
Hofstede's 5 value systems: how can you use each of them to help you market a product? Individualism vs collectivism Power distance low to high Risk taking vs uncertainty avoidance. Masculinity vs...
-
In 2022, Heron has a $7,000 short-term capital gain, a $50,000 28% long-term capital gain, and a $12,000 0%/15%/20% long-term capital gain. Heron also has a $1,000 short-term capital loss carryover...
-
Kenneth Hubbard has prepared the following list of statements about managerial accounting and financial accounting. 1. Financial accounting focuses on providing information to internal users. 2....
-
Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem. In Problem 12.6A...
-
What is revenue?
-
Certain transactions and procedures relating to federal and state unemployment taxes are given below for The Game Wizard, a retail store owned by Helen Kim. The firms address is 4560 LBJ Freeway,...
-
A car rental agency uses 96 boxes of staples a year. The boxes cost \($4\) each. It costs \($10\) to order staples, and it costs \($0.80\) to hold a box of staples in inventory for 1 year. Using the...
-
Is the critical path the shortest or longest path through a project network?
-
PERT assumes that path lengths through a network can be modeled with what type of probability distribution?
Study smarter with the SolutionInn App